International investment in Spain setting new records

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Foreign investment in Spain has reached record levels with international funds in a number of fields showing exceptional figures.

According to the Spanish regulator CNMV, SICAVs in Spain reached €107 billion in the first quarter of this year which is a year on year increase of 12.6 per cent.

Common in western Europe, a SICAV is an open-ended collective investment scheme and is a French acronym – société d’investissement à capital variable, which can be translated as ‘investment company with variable capital’. It’s similar to the open ended mutual funds popular in the US.

Positive figures were also posted by the Spanish asset management industry. It announced that assets under management had hit €222.2 billion by the end of July. This was an increase of 1.9 per cent, or €4 billion, when compared with the previous month.

In addition to this, €1.7 billion flowed into Spanish registered investment funds in July and, according to Inverco, most other fund categories showed growth.

BUILDING A HEAD OF STEAM

A report by Ernst & Young revealed that Spain is now in the top ten countries in the world for real estate investment, putting it above countries like France and Italy in this field.

Marc Pritchard, Sales & Marketing Director for leading Spanish homebuilder Taylor Wimpey España, is one of those confident in the future of Spanish real estate. “Momentum is definitely building within the Spanish property sector and I think we can say that this season, in all terms, is looking to be one of the best in many years, if not the best ever for Spain and the Islands,” he said.

German bank Berenberg believes Spain is going to continue to move forwards whatever its future political situation, and that its present growth is unlikely to slow down anytime soon.

A spokesman for the bank said, ‘With reforms decided and sufficient effort put in to stabilize its banking system, Spain turned the corner for good in 2013.’ Since then, Spain has seen a rapid growth in investment and a significant increase in employment.

Of the Euro companies that have needed external assistance, the bank says Spain is now one of the fastest growing economies among them and is a ‘magnet for foreign investment’.

DOING IT FOR THEMSELVES

With more and more economic activity happening in Spain and with the future looking bright, CEO of Angels Capital, Jaime Esteban, says that powerful initiatives are beginning to emerge across the country and that many opportunities are now being seen.

He believes this is most reflected in young people who in the past sought stable jobs or work in the civil service, saying, ‘We are now at the opposite end, since it is common to find young people who want to launch their own business.’

Two factors that have been key to this, he says, are, ‘The economic situation, which prompted these entrepreneurs to create their own destiny in a time when there was no work, and the implementation of initiatives that support people who want to start a business.’

For more information, please contact corporate law firm Argali Abogados.

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