Spain enjoys huge international investor confidence


Spain is enjoying high confidence from foreign markets with more than ninety percent of foreign companies expected to maintain or increase their investments in the country. This includes the number of employees that will be kept on as Spain continues to surge forward.

A study carried out by ICEXInvest In Spain – surveyed more than 500 companies. What came back was that 95 per cent of them expected to maintain or increase their investment in the country between 2016 and 2018.

It looked at 10 factors investors are interested in and compared them between 2014 and 2015. Every single factor analyzed showed improvement on the previous year. These included size of the market and human capital as well as innovation, quality of life and costs including the cost of electricity. Assessing that period, the report says, ‘[There was] substantial progress in all aspects highlighting the availability and cost of financing in commercial banking.’


Their optimism continues when looking at revenues with 64 per cent of countries expecting an increase. Against this, only four per cent expect a drop between 2017 and 2018. And 98 per cent of the companies surveyed said they expected exports to hold steady or increase in 2016 and beyond.

The highest percentage of businesses expected to consolidate or grow comes from Germany and Italy while companies with funding from Germany and the USA are more optimistic about increasing returns in the next few years.

The most attractive feature for foreign investors is Spain’s infrastructure, while they also put a high value on human capital and quality of life in the country. Airports and high speed rail links get special mention as part of the infrastructure while the skillset of the labour workforce and the quality of business schools are also held in particularly high regard. All these areas show improvements when compared with where they were in 2014.

The ICEX report is called Barometer Of The Climate Of Business In Spain From The Perspective Of The Foreign Investor.


It says, ‘The investment forecasts [regarding] billing, job creation and export volume for the years 2015-2018 are clearly positive and improved compared to 2014. The overall assessment of foreign investors regarding the outlook for the years 2015 to 2018 is very positive and represents a clear improvement over the latest edition.’

It adds that in 2012, 55 per cent of companies were expecting an increase in revenue with this figure rising to 64 per cent in 2015. It goes on to say that this will continue to rise between 2016 and 2018.

The most important considerations for foreign investors have been discovered to be the size of the market and human capital, which is the skills, knowledge and experience when viewing the population as a whole.

One of the biggest barriers to success is the Spanish population’s relative lack of language skills and the report acknowledged this saying, ‘We must continue focusing on language proficiency.’

Electricity was also cited as one of the weaknesses of Spain as a destination for investors. However, it could be seen as encouraging that, in an overall positive landscape, this too has moved in the right direction.

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




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