23/10/2017

Foreign Direct Investment

Every year more and more companies discover Germany as a secure

and rewarding investment location.

In the last ten years, Germany's FDI stocks doubled to reach an amount of almost EUR 600 billion in 2013. Around 55,000 foreign companies are already operating in Germany, employing almost three million people.

FDI Data

 European Stocks at the Top
Germany ranks seventh in the world as a recipient of foreign direct investment (FDI), according to the United Nations Conference on Trade and Development (UNCTAD).

According to official Bundesbank (“German Central Bank”) statistics for 2012, fifty-eight percent (or EUR 346 billion) of all FDI stocks in Germany originate from within the EU-27, with a further eight percent stemming from the remaining European non-EU countries.
Investments from outside the EU continue to grow. North America accounts for 24 percent of FDI stock, while Asia holds a nine percent share. Especially Asian countries increased their FDI stocks in Germany in recent years. Germany is the world’s largest recipient of new Chinese fdi projects.

 Ongoing Interest in Greenfield Investments
Between 2008 and 2013, fDi Markets recorded more than 4,700 investment projects in Germany by some 3,900 foreign companies. With 857 greenfield projects, 2012 proved to be the most successful year ever recorded, with Germany placing forth worldwide in terms of FDI projects attracted. In 2013, nearly 800 projects were recorded, making it the third best result ever achieved. FDI results are based on greenfield project announcements (including expansions and joint ventures) collected in the Financial Times Group's fDi Markets database.
The most important countries as sources for new investment projects are the USA (24 percent of all investment projects), Switzerland (eight percent), and UK (eight percent), respectively. The ICT & software industry, and business & financial services are leading sectors in attracting new projects. The industrial machinery & equipment, textiles, consumer goods, and chemical industries are likewise attractive foreign investment sectors in Germany.
Most new projects open sales and marketing & support offices. One in seven investment project is manufacturing-site located – making this a very important business activity in Germany.

 

 

FDI Reputation

 First Choice in Europe
A recent study conducted by the American Chamber of Commerce highlights the positive regard in which the German business environment is held by US companies. Invited to indicate their main medium-term investment focus within the EU, 29 percent of participating American companies named Germany as their first choice – followed by Eastern Europe (17 percent), and Western Europe (12 percent) respectively.
The UNCTAD World Investment Prospects Survey 2013-2015 confirms Germany's reputation as the most attractive business locations in continental Europe. 161 Trans-National Companies ranked Germany first within Europe, and fifth internationally as top destination for 2013-2015. The Ernst & Young study on the attractiveness of the European economic area (2014) also shows that Germany is the number one business location in Europe and the number four worldwide.

Competitiveness Study

Germany’s Rank in Europe

Germany’s Rank Worldwide

Ernst & Young European Attractiveness Survey (2014)

1

4

A.T. Kearney FDI Confidence Index (2014)

2

6

UNCTAD World Investment Prospects Survey 2013-2015 (2013)

1

5

 

 High Scores in Infrastructure and Workforce
In the above mentioned Ernst & Young study, over 800 international decision-makers were surveyed on Europe and a further 201 companies were asked questions with a specific focus on Germany.
Germany received many great marks for various business location factors. These include infrastructure (telecommunications and transport), workforce qualifications and the social climate. 55 percent of those surveyed predict that Germany’s attractiveness will continue to grow in the coming years.
The study further shows that Germany’s growth drivers are in the transportation and automotive industries, environmental and energy technology, as well as the information and communication sector. Surveyed managers expect that in the future most of the investments will go into research and development as well as in manufacturing. It is no surprise that 64 percent of companies surveyed are convinced that Germany is pursuing a policy that attracts international investors.

(Executive opinion survey: ”How do you evaluate Germany in respect to the following location factors?“)

FDI Ticker

 FDI Ticker February | 2015

Investing Company Source Country Destination State Destination City Industry Sector Industry Activity
Audax Energia Spain Sachsen   Coal, Oil and Natural Gas Electricity
CipherCloud United States Nordrhein-Westfalen Koln Software & IT services Headquarters
VuWall Technologies Canada Bayern Munich Software & IT services Sales, Marketing & Support
VuWall Technologies Canada Baden-Wurttemberg Stuttgart Software & IT services Sales, Marketing & Support
Barry Callebaut Switzerland Nordrhein-Westfalen Koln Food & Tobacco Education & Training
TX Logistik Italy Bayern Munich Transportation Sales, Marketing & Support
Able Cosmetic South Korea Bayern Ingolstadt Consumer Products Retail
AppDirect United States Bayern Munich Software & IT services Sales, Marketing & Support
G Adventures Canada Berlin Berlin Hotels & Tourism Sales, Marketing & Support
Loop21.com Austria Nordrhein-Westfalen Ratingen Communications Sales, Marketing & Support
Pricer Sweden Nordrhein-Westfalen Dusseldorf Software & IT services Sales, Marketing & Support
C&A Switzerland Nordrhein-Westfalen Monchengladbach Textiles Logistics, Distribution & Transportation
Zendesk United States Hessen Frankfurt am Main Software & IT services ICT & Internet Infrastructure
Sowareen Solutions Switzerland Thuringen Jena Industrial Machinery, Equipment & Tools Manufacturing
Under Armour United States     Textiles Retail
Host Virtual United States Brandenburg Frankfurt/Oder Communications ICT & Internet Infrastructure
CSA Group (Canadian Standards Association) Canada     Business Services Design, Development & Testing

© fDi Intelligence, from the Financial Times Ltd 2015. Data subject to terms and conditions of use

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