The UK Remains Europe's Most Attractive Destination for Financial Services (FS) Investment, but Its Lead Is Narrowing
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The UK remains Europe’s most attractive destination for financial services (FS) investment, but its lead is narrowing Minds made for empowering financial services The UK continues to be Europe’s top location for financial services investment, attracting 56 global projects in 2020. The UK - and Europe overall - saw a decline in the total number of FS projects compared to the year before, but investor sentiment is encouraging and suggests the UK financial services market will remain the most attractive in Europe for post-pandemic investment. Financial services FDI fell by 23% across Europe in 2020, as Despite falling activity levels, FS investors named the UK as the COVID-19 pandemic impacted business confidence and the top European country, and London the top European travel city, for FS foreign investment in 2021 Total number of European and UK FS investment projects 450 Most attractive European countries Most attractive European cities 421 400 368 350 342 300 295 302 277 285 250 200 202 196 202 150 106 112 100 94 99 88 78 50 49 56 37 47 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 European FS projects UK FS projects Source: EY European Investment Monitor (EIM), 2011-20 Source: EY Europe Attractiveness Survey, June 2021 Whilst the UK maintained its top position in 2020, the total For the second year running, FS investors named the digital number of projects fell by 43% to 56. Five of the top six economy as the top sector to drive UK growth, with financial European countries saw FDI declines in 2020 - with the services coming in third exception of France - which increased its projects, and has now taken second place Top six European countries 2019 2020 Digital economy 54% United Kingdom 99 56 Real estate and France 38 49 42% construction Germany 43 37 Spain 40 31 Financial services 33% Switzerland 16 14 Ireland 31 13 Source: EY European Investment Monitor (EIM), 2019-20 Source: EY UK Attractiveness Survey, June 2021 But investor sentiment for the UK’s future attractiveness is Within the UK, London remains a beacon for FS FDI, with very encouraging Scotland particularly showing continued strength In the next three years, Top six UK cities and regions 2019 2020 of FS investors believe the UK 56% will be more attractive Greater London 67 38 (Spring 2021) Scotland 8 6 This is up on past years, where: North West England 5 3 Yorkshire and the Humber 6 3 53% 40% 17% East of England 0 2 West Midlands 3 2 (September 2020) (April 2020) (2019) of FS investors believe the UK will be more attractive Source: EY UK Attractiveness Survey, 2021, September 2020, April 2020, and 2019 Source: EY European Investment Monitor (EIM), 2019-20 © 2021 EYGM Limited. All Rights Reserved. EYG no. 005221-21Gbl ED None .