HEALTHPLAN MAGAZINE

The presence of British investors in Andalusia continues to strengthen, both at the provincial and regional levels. Not only are there increasing numbers of British tourists visiting the region, but UK companies are also demonstrating a strong commitment to investing and establishing themselves in southern Spain.

Andalusia has now become the fourth most favored destination for British investors in Spain. In the first three months of 2023, investment from the UK increased by an impressive 23% compared to the previous year, surpassing 66 million euros. These figures are derived from the VIII Barometer on climate and prospects of British investment in Spain, published by the British Chamber of Commerce in Spain in collaboration with International Financial Analysts (Afi).

Experts who participated in the report's presentation emphasised that factors such as tourism, sustainability, location, talent, and public-private collaboration have played key roles in attracting British interest, particularly in the province of Malaga. They noted that Malaga has successfully created an ecosystem that is conducive to attracting British investment to the region.

Andalusia trails Madrid, Catalonia and the Basque Country

Andalusia consistently ranks among the top four preferred regions for British companies. For the fifth consecutive quarter, Andalusia holds the fourth position, trailing behind Madrid, Catalonia, and the Basque Country. Additionally, the South of Spain received an investment of 66 million euros, while Catalonia received 147 million euros, the Valencian Community received 110 million euros, and the Community of Madrid received 94 million euros.

Impact on employment

In terms of employment impact, British companies have contributed to the creation of 15,000 jobs in Andalusia. Of these, 10,000 jobs are directly created by these companies, with an additional 5,000 jobs generated indirectly within the local business fabric. María Romero, Partner Director of Economics at International Financial Analysts, acknowledged that this contribution is significant given the state of the job market in the community. British companies are responsible for 0.5% of the total jobs in Andalusia.

Regarding sectors, Romero highlighted that energy and technical services in architecture and engineering have witnessed substantial investments from the British during the first quarter of 2023. This trend aligns with the previous year, as the energy sector saw a focus on wind and photovoltaic energy. Additionally, British investors have shown interest in accommodation services, a market closely associated with real estate and construction.

Britain ranked 5th in foreign direct investment into Spain

Looking at the overall investment scenario in Spain, the United Kingdom ranks fifth in terms of foreign direct investment (FDI) in the first quarter of the year, amounting to 444 million euros. This level of investment remains consistent with previous years' first-quarter figures. The wholesale trade sector and the education sector attracted more than half of the British investment, followed by real estate operations and beverage manufacturing.

The round table discussion held during the presentation of the barometer, led by Isabel Pascual, Director of the Investment Area at Promálaga, featured insights from Daniel Tovar of Bunzl Distribution Spain, Miriem Diouri of MDG Advisors, and Julian Gallagher of Fluent Finance Abroad. They deliberated on the unique aspects that Malaga and Andalusia offer to potential investors.

Tovar emphasised that Andalusia possesses immense potential to attract investors, and what is required now is greater flexibility from the authorities. He emphasised that administrations should be more attuned to the needs of companies, as their ability to invest hinges on this flexibility—a concern not limited to Malaga or Andalusia but applicable nationwide. Tovar also stressed the importance of sustainability, calling it "essential" and urging prompt investment in this market, as it holds the key to the future.

Miriem Diouri, highlighting sustainability, noted that companies considering Malaga see it as a sustainable and favorable place to live. She emphasised the need to maintain the existing quality of life standards, as they serve as a differentiating factor. Diouri also commended Malaga for successfully creating an ecosystem that attracts investment, citing its idyllic geographical location as a favorable factor. She called for increased public-private collaboration and the establishment of a secure framework to ensure the success of future investments.

The Mayor of Malaga, Francisco de la Torre, was present at the event and highlighted the significance of British tourism for the city, considering that the British market accounts for approximately 4.8 million travellers. Furthermore, an increasing number of British companies are establishing themselves in the technology park and within the city. De la Torre emphasised the enduring connection between Malaga and the UK and the ongoing British investment, both nationally and regionally, noting the understanding of the British commitment to tourism and investment in the capital.

Source

https://www.malagahoy.es/malaga/inversion-britanica-trimestre-Andalucia-millones_0_1808820387.html