The United Kingdom is establishing itself as one of the four countries with the largest direct investments in Spain.
The Barometer on the Economic Climate and Prospects for British Investment in Spain was released on Tuesday. The study, which was commissioned by the British Chamber of Commerce in Spain and produced by Analistas Financieros Internacionales in collaboration with the London School of Economics and ICEX-Invest in Spain, is the first one to present precise data on the opinions of British companies regarding the establishment of businesses in our country.
According to the report, 21% of foreign direct investment (FDI) flowing into Spain comes from British companies, which equates to a direct investment of 63 billion euros for the period 1993 to 2014. The vast majority of this flow was productive investment; only 5% relates to companies holding financial securities.
In terms of stock, the United Kingdom is the country with the fourth largest FDI in Spain, with over 10% of the total. This stock is mainly focused in the telecommunications, tobacco, financial services and wholesale trade sectors. As for the breakdown by region, the investment has historically been concentrated in Madrid and Catalonia, followed by the Basque Country.
British direct investment in Spain has generated around 241,000 jobs (direct and indirect) up to 2012, which represents 1.4% of total employment. In addition, the income derived from this investment has contributed 4.4 billion euros in taxes to the State Administration -2.6% of the total-; and more than 2.6 billion euros to the Spanish Social Insurance Authority which represents 1.5% of total social security contributions.
The photograph shows, from left to right, the president of Analistas Financieros Internacionales, Emilio Ontiveros; the Secretary of State for Commerce, Jaime García-Legaz; the British ambassador, Simon Manley; the president of the British Chamber of Commerce in Spain, Roger Cooke and the president of the British Chamber of Commerce’s Committee for British Investment in Spain, Steve Cahill.
Future Outlook More than half of British companies plan to increase their investment in Spain, continuing the improvements seen in 2014. Of these, two thirds will do so immediately.
Investment is expected to continue to focus on those economic sectors and regions where there is already a significant presence. That is: manufacturing; professional, scientific and technical activities; finance and insurance and the wholesale and retail trades. Predominantly in the Madrid and Catalonia regions.
Institutional collaboration In his speech, José Carlos managing director of ICEX-Invest in Spain, stressed that globalization is a two-way process, which is why ICEX-Invest in Spain collaborates with UK Trade & Investment (UKTI) in efforts to promote exports, as well as in pursuing three additional objectives: attracting new British investment; encouraging the development of British companies already established in Spain and improving the business climate, which involves noting the concerns of the businesses already established here.
The presentation was closed by the Secretary of State, Jaime García-Legaz, who pointed out that in addition to the number of jobs created by British companies in Spain, it is notable that they are skilled jobs, in two aspects: in relation to the working conditions they offer and due to their high technological profile.
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