KPMG and Greater Paris Investment Agency have announced that London takes more foreign direct investment (FDI) than any other city in the world.
London continued to receive more foreign direct investment (FDI) than any other city in the world this year according to KPMG and Greater Paris Investment Agency.
London’s success is all the more noteworthy when contrasted with other Western European cities that have suffered the stagnating repercussions of the sovereign debt crisis.
This news also comes despite the rapid influx of investment experienced by cities in emerging economies. The BRIC nations exemplify this trend; Brazil, Russia, India and China all received exponential levels of growth.
China’s Shanghai and Hong Kong followed close behind while Sao Paulo in particular stormed to fourth position after it received a 160% increase in FDI over the past two years.
With the inclusion of New York in fifth position, the top five cities absorbed half of total global FDI.
Russia also launched itself to eighth position after receiving a 60% increase in investment during the same period.
The Eurozone crisis, causing instability and meagre returns on the mainland is perhaps the main driving force that has driven investors to London. London’s entrenched legal and accountancy infrastructure, not to mention the Square Mile’s institutional corporate power base provides a secure environment for investors.
London’s IT and software sector also appears an attractive option for investors: $3985m was invested in this industry in the first six months of 2011. This is compared to $530m during the same period in 2010.
With Google, Intel and Cisco all expressing plans for further investment in London, the capital appears to be a bastion of hope within the Eurozone and a safe haven.