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WORKING ABROAD / DEC. 27, 2012
version 25, draft 25

Direct Foreign Investment in Spain rose 18.4%

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 During 2011, Spain received a total of 28,415 million euros of direct foreign investment in equity holdings (IED), which is 18.4% more than in 2010 according to figures of the Foreign Investment Registry of the Ministry of Economy and Competitiveness. In net terms, IED rose by 18.2%, after deducting disinvestments, which in 2011 amounted to 3,638 million euros.

Investment in productive enterprises, which does not include ETVEs (Foreign Security Holding Companies, Empresas de tenencia de Valores Extranjeros) accounted for 79.1% of the total, compared with 50.4% in 2010.

By quarters, investment rose sharply at an annualised rate in the first quarter (238.5%) and second (148.6%), while it fell in the third (-20.1%) and fourth (-46.6%).

The main sectors to receive flows of foreign investment with significant percentages of the non-ETVE total were wireless telecommunications (17.9%), passenger air transport (17.6%) and other monetary brokerage-banking (7.9%).

By countries of origin of the investment (final investor), not including ETVEs, United Kingdom (30%) is the leading investor country, followed by France (25.1%), Netherlands (6.6%), United States (6.4%), Luxembourg (5.9%) and Germany (5%).

By autonomous communities, Madrid leads the ranking with 55.7% of the total, followed by Catalonia, with 13.4%.

Spanish investment abroad

Spanish investment abroad amounted to 30,611 million euros in 2011, 21.9% lower than in 2010. Disinvestments stood at 14,953 million euros, down 5.7%, while net investment fell 33% to 15,658 million euros.

82.6% of investment was focused on productive companies (non-ETVEs) with investment in listed foreign companies regaining its important role - indeed it is the only sector which increases, very significantly, both in gross terms, 147.3%, and net, 116.2%. ETVE investments fell by 49.6%.

By quarters, the first and second quarter reported sharp growth y-o-y, of 96.1% and 137.5% respectively, while the third quarter showed a reduction of 81.9%, and the fourth, 42.6%.

The main sectors to which Spanish investment was directed with significant percentages of the non-ETVE total were other monetary brokerage-banking (34.9%), followed by passenger air transport (13.8%) and electrical distribution (6.7%).

By recipient countries, non-ETVE investment was focused on five countries which account for 73.6% of the total: Turkey (17.6%), Poland (16.6%), United Kingdom (16%), Brazil (15.9%) and United States (7.5%).

The autonomous community which significantly issued most investment was Madrid, with 47.2% of the total, followed by the Basque Country, with 19.1%; Cantabria, with 17.2%; and Catalonia, 9.6%.

Attracting investment in Spain

Invest in Spain, a company affiliated with the Secretary of State for Commerce, took part in some of the most significant projects of those installed in Spain in 2011, including that of the US multinational, Celgene, in Seville. In February last year, this biotechnology company opened its first research centre (CITRE) outside the US with the aim of investigating new therapies to treat illnesses which have been incurable until now, especially cancers and diseases of the immunological system. Celgene was chosen by Invest in Spain to receive funding from the Technological Fund, arising from the European Regional Development Fund (ERDF), which accounted for 25% of the company's initial investment.

The world's largest bank, China's ICBC, officially opened its first office in Spain in January 2011. ICBC, which was advised by Invest in Spain, established itself in Spain with the object of providing services to 166,000 Chinese nationals residing in Spain and to become an important financial channel to help improve investment flows between China and Spain.

Invest in Spain, which shall be integrated in the ICEX in the framework of the process of rationalisation of the public enterprise sector in order to continue carrying out the roles of attracting, promoting and maintaining direct foreign investment in Spain via the Spanish Foreign Trade Institute (Instituto Español de Comercio Exterior), cooperated in 2011 in setting up 76 foreign investment projects in Spain, with a total investment of 169.8 million euros and 3,735 jobs created.

 


 

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