Spain Still Attracts Foreign Investors

Spain Still Attracts Foreign Investors

Spain Still Attracts Foreign Investors

Spain’s recovering economy and the increasing competitiveness of its industries are driving a fresh inflow of foreign investment.

In 2014, Spain came 9th in the rankings of countries which attracted the largest amount of global investment.

This is no mean feat for a country which only two years previously was teetering close to the brink of a bailout as its risk premium hit historic highs amid doubts over its ability to balance its books.

Spooked by Spain’s uncertain future, international companies which had created jobs and generated activity worth some 10 billion euros shut up shop in 2012.

Now, however, things are definitely looking up!

 

EXTERNAL FACTORS BOOST ALLURE

Government data for 2014 confirms that the eurozone’s fourth largest economy is fast regaining foreign investors’ confidence.

Productive foreign investment – which generates business and jobs – rose 9.8 percent in 2014 from a year earlier. This figure is particularly significant within a context of falling direct global investment. Spain’s qualified and flexible workforce, coupled with its competitive production costs, are encouraging overseas companies to invest in new plants or expand existing ones.

International car makers like General Motors have stepped up their production capacity in the last couple of years and just recently, the world’s largest food group Nestle announced a 102 million euros investment in a new soluble coffee production facility at its Gerona plant.

While Spain is working hard to ensure its economic turnaround is sustainable, there are external factors which have enhanced its reputation as an investment hotspot. These include:
• the euro depreciation
• the fall in energy prices due to cheaper oil
• the political turmoil in other parts of the world. This has led investors to view Spain as a safe haven.

 

INVESTORS RAISE PORTFOLIO HOLDINGS

Apart from setting up or expanding businesses in Spain, foreign investors have also been buying stakes in companies across a range of sectors, including banking, electricity, security and construction.

Microsoft co-founder Bill Gates, top US hedge fund manager George Soros and Mexican magnate Carlos Slim are just some of the big hitters who have been expanding their Spanish portfolios.

Asian investors like China’s Platinum Estates Group and top Canadian hotel chain Four Seasons are helping ease the country’s still thorny unemployment problem by participating in the Canalejas project – an estimated 500 million euros makeover of Spain’s capital Madrid’s city centre.

Spain is now clearly back to stay in global investors’ good books!

For information on investment in Spain, contact corporate law firm Argali Abogados.

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