Index 10 Introduction 14 Executive summaryPublished by:Barcelona City CouncilArea of Economy, Enterprise and EmploymentLlacuna 162, 08018 Barcelona 20 Quantitative analysis www.bcn.cat/barcelonagrowthStudy produced by: 34 Qualitative analysis Research team:Esteve Mogas and Jordi Pascual (ESADE)With the support of Janina Pellegrini and Begoña Gómez (Observatory of Spanish Multinational Companies, OEME)Academic supervision:Pere Puig, Professor in the Department of Economics at ESADE 50 Recommendations Xavier Mendoza, Associate Professor in the Business Policy Department at ESADE and Director of the OEMEWritten by:Esteve Mogas, Jordi Pascual and Xavier MendozaTranslation:Chris Lloyd 54 Appendix: Study methodologyCoordination:Area of Economy, Enterprise and Employment 60Design and layout:Berta Hernández Bibliography Printed by: Gam DigitalLegal Deposit: 60B-15993-2012April 2012 Acknowledgements
6 FOREIGN INVESTMENT IN THE BARCELONA AREA 7We in the municipal government firmly believe that Securing new activity from outside and retaining existing Barcelona and its surrounding area have traditionally The city has to enhance its ability to attract talent andBarcelona generates confidence. Above and beyond its investment will help us overcome the crisis and create been an attractive setting for foreign investment. Since the best managers and professionals, who are, in short,quality of life as a factor in attracting professionals and new opportunities. One of the key priorities for Barcelona the late nineteenth century, numerous foreign-owned ultimately responsible for improving the productivity ofcompanies from around the world, it is a city that has the City Council is economic recovery and job creation. companies chose our region to set up their new facto- their companies, and foreign entrepreneurs who gener-right environment for innovation and creativity as well To achieve this, it is essential that our city becomes an ries. This era is outstanding for the industrial investment ate wealth. We need to prioritise efforts and focus on theas major factors that afford it exceptional added value, international benchmark in strategic and future areas, from French, German, British, Swiss and Belgian compa- sectors with the greatest scope and potential.such as the presence of universities, leading business projecting a powerful image as a global metropolis and nies, and later on, American companies. These pioneer-schools, top level research centres and highly dynamic favouring foreign investment and the attraction of eco- ing firms, some of which are still active and here among This study is part of the Barcelona Growth initiative.business clusters. nomic activity to the full. us today, contributed to Barcelona becoming known as Led by the City Council but based on the joint work of the Catalan Manchester thanks to its industrial activity. the leading economic and social agents in the city, theAs the economic capital of the Mediterranean, it is also initiative aims to guarantee the conditions for economicone of the leading metropolitan areas in Europe. Its di- Xavier Trias This trend has been changing for some decades now, at growth by seeking practical measures in order to resumeverse productive structure features strategic sectors with Mayor of Barcelona the same pace as the very productive structure of the growth and the creation of employment and wealth.a high added value and great potential for future growth, city. These days, large-scale industrial complexes havesuch as information and communication technologies, given way to investment geared primarily towards the Barcelona has to adopt a proactive attitude to becomebiotechnology, energy, media, design and higher educa- advanced tertiary sector and new emerging sectors with the true Mediterranean business capital, one that pro-tion, to name just a few. high rates of innovation and strong growth. motes investment and economic activity.Barcelona has also made a commitment to improving However, the changes in the world scenario, with theand developing its digital infrastructures and applying appearance of new emerging markets and the present Sònia Recasensurban innovation technology and economy, to more economic and financial crisis being experienced by some Deputy Mayor for Economy, Enterprise and Employmentsustainable and efficient city management, to improving developed markets, are affecting international invest-people’s quality of life and to making the city more com- ment flows. In light of these new challenges, we need topetitive for its businesses. The aim is to make Barcelona apply new focuses and develop policies to continue botha benchmark as a smart city and the ideal city in which to secure new activity from outside and to ensure theto start up and develop a business. loyalty of existing activity.This way, we will consolidate and enhance our prestig- And this is precisely one of the aims of this study: to offerious international brand and image, which is a huge guidelines and useful recommendations for designingasset in attracting investment and securing new busi- the specific actions to promote, attract and retain inter-nesses. Our city has traditionally been the gateway for national investment. Of the over 5,100 foreign-ownedforeign investment, and today Barcelona is one of the companies in Catalonia, the majority are concentratedworld’s ten leading metropolises for inward foreign in the Barcelona area. This is why we want this numberinvestment projects and one of the top ten most attrac- both to be consolidated through promoting reinvest-tive cities globally for locating or starting up a business, ment and the creation of new business lines and to beaccording to the recent Global Cities Investment Monitor increased through securing new companies.by the KPMG firm of consultants.
8 FOREIGN INVESTMENT IN THE BARCELONA AREA 9I have the great pleasure of introducing the study en- I would like to highlight a particularly relevant feature oftitled Foreign Investment in the Barcelona Area, which this study. Its conclusions are founded not only on thehas been drafted by a team of researchers from ESADE analysis of the most recent statistical data, but also, andand commissioned by the Area of Economy, Enterprise especially, on extensive field work that has enabled theand Employment. authors to receive the highly valuable contributions of a far-ranging group of managers from foreign companiesThe starting point of the study is the realisation that we established in the Barcelona area and of experts directlyare facing a new international scenario with significant connected with advice on, and securing of foreign invest-implications for companies and countries worldwide. ment operations in this region.The fragile state of the most developed economies, The experts and managers consulted in the study agreedthe result of the global financial crisis that burst in the in stressing the potential of the Barcelona area to con-summer of 2007 and the subsequent crisis in the euro- tinue to attract foreign investment over the coming years.zone, is in strong contrast with the rise of the emerging My wish and that of the authors is for this study to be aeconomies. We are witnessing a profound change in the useful contribution to all the public and private agentsworld economy and geopolitics, the direct consequence involved in turning this potential into a reality.of the economic globalisation processes started over twodecades ago. The world’s economic centre of gravity issteadily shifting from the developed countries towards Alfons Sauquetthe large emerging economies. A very significant piece Dean of ESADE Business Schoolof data with regard to this is that 2010 saw the first timethat the developing countries attracted more than 50%of foreign direct investment (FDI) flows worldwide.This new international scenario poses a major challengeto the developed countries, who are now forced to recon-sider a number of important issues, including the policiesfor attracting and securing foreign investment.In this sense, the aims of this study are to present thecurrent state of foreign investment in the Barcelonaarea and Catalonia, identify the challenges and princi-pal future opportunities as regards attracting foreigninvestment, and draw up a series of recommendationsregarding the policies for attracting and securing foreigninvestment.
12 FOREIGN INVESTMENT IN THE BARCELONA AREA 13Objectives Structure Definitions and scopeCatalonia, and the Barcelona area in particular, boasts The report is organised in four main sections: The usual name of foreign direct investment or FDI is With regard to its geographical scope, the study focusesa long tradition of attracting foreign investment, which used to include the following phenomena: on foreign direct investment in the Barcelona area andhas become a major driving force both in terms of the By way of introduction, the first section presents the Catalonia. The analysis of quantitative data looks at thegrowth of the Catalan economy and of the improvement objectives and scope of the study and sets out the struc- Investment flows whereby a foreign investor acquires at evolution of FDI in the world, in Spain and in Catalonia.of its competitiveness. For this reason, it is of interest to ture of the report. least 10% of the capital of a local company (it is consid- As regards the qualitative study, this has been focusedanalyse the evolution of this type of investment regularly, ered that an ability to influence the company manage- exclusively on the Barcelona metropolitan area, takingincluding the main obstacles and motivators that affect The second section presents the results of the quanti- ment is ensured if the share is less than 50% and an this to be the city of Barcelona and its catchment area,these flows. tative analysis, describing the main figures relating to ability to control if the share is more than 50%). comprising seven counties (Alt Penedès, Baix Llobregat, foreign direct investment (FDI) and its evolution over Barcelonès, Garraf, Maresme, Vallès Occidental andThe main aim of this study is to draw some specific time. The decision was taken to describe the situation of Investment flows whereby a foreign investor incorporates Vallès Oriental).conclusions regarding the present state of inward invest- FDI in the world and in Spain, to then go on to focus on new companies with a trading activity or carries out ament in Catalonia, especially the Barcelona area, and the Barcelona area. capital enlargement of its own subsidiaries.about the challenges and opportunities that are facedthrough analysis of the latest data and the evaluations The third section presents the results of the qualitative By contrast, this concept does not include loans betweenmade by the experts and entrepreneurs playing a central analysis, Grouped in eight large subject areas, it ana- the parent company and its subsidiaries or investment inrole. lyses the main conclusions drawn from the interaction property. with managers and experts linked with foreign directThe study seeks to look into the impact of the crisis on investment in Barcelona. It is usual to regard FDI in greenfield projects as the mostforeign direct investment (FDI) flows and into the foreign reliable indicator in estimating the impact of foreigncompanies established in the Barcelona area and Cata- In the fourth section, the research team draws up a investment on GDP in a given geographical area. Thelonia, and to identify future trends in terms of attracting series of recommendations based on the analysis of the reason is that mergers and acquisitions, in themselves,FDI. statistical data and the principal contributions gathered do not entail the automatic generation of additional eco- in the field work. nomic activity whereas a new production start-up does generate new activity in the region. The report is accompanied by an executive summary that seeks to summarise very succinctly the main con- For similar reasons, wherever possible, the FDI made clusions of the study conducted. through the so-called Entitats de Tinença de Valors Es- trangers (holding companies) or ETVE, has been itemised For readers who are interested in the more technical as it does not necessarily generate an increase in the aspects, the details of the methodological aspects gross domestic product of the regions in which these referring to the conducting of the study are offered in an companies are registered.1 Despite their great impor- appendix. tance in terms of volume of operations, their effects can be different from those of other types of investment, so we have chosen to show them disaggregated. 1. Spain has a very favourable tax system for foreign holding companies (entitats de tinença de valors estrangers or ETVE), seen as international groups that wish to have a basis for managing their interests in a number of countries. The only requirement is to incorporate a company in Spain and bring in the securities of foreign interests (with a minimum share of 5%). This tax system enables non- resident companies and individuals not to pay tax on dividends received from non-resident interests.
16 FOREIGN INVESTMENT IN THE BARCELONA AREA 17Catalonia, and the Barcelona area in particular, boasts From the quantitative analysis, conducted on the basis of In terms of share, Spain lost two percentage points from The qualitative part of the study included conductinga long tradition of attracting foreign investment, which various statistical sources on FDI, the following aspects its maximum figure of 4% of inward FDI worldwide in in-depth interviews and focus groups with experts andhas become a major driving force both in terms of the stand out: 2008. managers of foreign companies established in thegrowth of the Catalan economy and of the improvement Barcelona area and the rest of Catalonia. A survey wasof its competitiveness. The global financial crisis that • The loss of share in world FDI flows is even more ac- also conducted among former students of the ESADEbegan in 2007 has both contributed to highlighting and 1. centuated when we consider the European Union as a business school who work outside Spain. Although thecatalysed a new international scenario, characterised After the collapse witnessed in 2009, gross inward FDI in whole, which has lost four percentage points in the last sample is not significant, the results obtained are in lineby the increasingly central role of the so-called emerging Catalonia revived strongly in 2010 to reach 4.52 billion four years. with the rest of the analysis. The principal conclusions ofcountries in the world economy and geopolitics. euros, the highest level for four years, representing 19% the qualitative part are summarised below. of inward FDI in Spain.This new international scenario has profound implica- 4.tions with regard to the ability to attract foreign direct • Despite this, we should remember that in recent After three consecutive years of falls, the total inward 7.investment (FDI) into the Barcelona area and Catalonia. years, in the 2007-2009 three-year period, the proportion FDI volume worldwide in 2010 rose by 5% compared Foreign direct investment (FDI) in the Barcelona area will,The aim of this study is to analyse the recent evolution of productive FDI aimed at Catalonia within Spain fell with the previous year, although this is still far from the in the short term, continue to come primarily from theand present situation of foreign investment in Catalonia, considerably, standing at figures of less than or slightly level reached in 2007, before the global financial crisis. developed European countries and the United States ofdiscover the challenges and opportunities perceived by above 10%, far from those of the 2000-2006 period. We should stress that flows of investment aimed at the America. The emerging countries will still continue to beforeign companies established in Catalonia and identify developing economies were the principal driving force, inward FDI countries rather than outward FDI countriesemerging future trends and their impact on policies for with a 10% increase. with regard to investment flows aimed at the developedsecuring FDI. 2. countries. Of note is the fact that since 2006, the number of foreignIn order to achieve this aim, extensive field work was companies established in the Barcelona area has grown 5. • France, Germany, the United Kingdom and the Beneluxconducted using qualitative techniques, such as focus by 13%, numbering 3,381 in 2010. By type of FDI, it has been seen worldwide in the last four countries will act as principal driving forces of FDI into thegroups and individual interviews with managers from years that newly established investments (greenfield) or Barcelona area.foreign companies and local experts in inward FDI into • With regard to countries of immediate origin of FDI in the extension of existing investments have gained in rela-the Barcelona area. This qualitative analysis was comple- Catalonia, the Netherlands, France and Germany, in this tive weight and reached 70% of total FDI flows in 2010. In • From our country’s point of view, the emerging countriesmented by quantitative analysis of the various statistical order, were the main countries providing FDI into Catalo- turn, cross-border mergers and acquisitions underwent a are characterised globally by their nature as recipients ofsources and databases on FDI. The principal conclusions nia, making up half the total investments received in the sharp decrease in 2010 to a third of the value reached in FDI rather than senders. Despite this, it is felt necessarydrawn are then summarised. 2006-2010 period. 2007, which reflects the close link that these operations to put in place promotion and positioning policies of the have with the economic cycle. Sectorial analysis of FDI in Barcelona area straight away aimed at companies in the • By sector, services accounted for 53% of inward for- the world shows a recovery of the manufacturing sector emerging countries with strong international expansion, eign investment in Catalonia in 2010. This compares with in 2010 compared with the previous year (+23%) with an knowing that securing investment from these companies 41% for industry and manufacturing, which have been increase in its relative weight in total FDI of up to 48%. is a medium- and long-term objective. losing ground since 2007 as inward FDI sectors. 6. 8. 3. The consideration of the negative evolution of inward We are facing a profound change in the rules for sourcing The evolution of inward FDI in Catalonia in the 2007- FDI in the European Union in recent years, a result not FDI as a result of two main facts: on a macro scale, it is 2010 period was clearly positive if compared with the just of the less favourable economic climate but also of aimed mainly at the emerging countries, and on a micro evolution of inward FDI in Spain and the European Union structural problems of competitiveness, together with the scale the preference for locations in “hub cities” is com- (EU) in the same years. strong dynamism of FDI flows into the emerging coun- ing to the fore. tries, underlines the structural change of scenario being • Even though inward FDI in Spain in 2010 showed a faced by the developed countries in terms of securing strong recovery, with 169% growth compared with the FDI in their economies. We are facing a change that will collapse it underwent in 2009, in absolute terms, it did call for new focuses and new policies. not reach one-third of the maximum achieved in 2008.
18 FOREIGN INVESTMENT IN THE BARCELONA AREA 19• Besides highlighting the change in destination of tan city that Barcelona has and the potential afforded it The entrepreneurial spirit and credibility of the local man-foreign direct investment, which is aimed mainly at the by its geographical location from a geo-economic point of agement teams for their respective headquarters are theemerging countries, also significant is the loss of the view. key factors in bringing about the creation of these centres.OECD countries, led by Europe, as a destination for FDI.This loss of influence and attraction is even more accen- In terms of human capital, the Barcelona area is seen astuated with regard to the southern European countries. both a provider, in terms of the existence of local talent, 12. and as a magnet, in terms of the ability to attract outside The major force and the great value of the Barcelona• The preference is also evident of large companies talent. brand and the need to reinforce it are noted. The optionwanting to locate their subsidiaries in cities with a strong of positioning Barcelona as the “Mediterranean busi-and dynamic economic fabric, connected to the world ness capital” has the majority support of the experts andinnovation networks and with good communications 10. managers consulted.infrastructures, the so-called “hub cities” with their met- Opinion coincides in the idea of focusing effort on promot-ropolitan areas. As will be seen later, this trend offers the ing the services sector as a great economic asset of theBarcelona area significant opportunities that it must be future of the Barcelona area, together with certain indus-able to take advantage of. trial sectors of high technological content. The experts and managers consulted identified six sectors9. on which they recommend concentrating efforts in secur-The principal attractions of the Barcelona area can be ing foreign investment:summed up in the fact that besides fulfilling the objec-tive parameters required for attracting FDI, it also enjoys - the logistics sectora highly positive perception in terms of the qualitative - the information and communication technologies (ICT)parameters used in assessing investments. sector - the biotechnology sector• The objective parameters most highly valued by foreign - the sectors linked to creativity and culturecompanies already established here, in the opinion of - the tourism sectorthe experts and managers consulted, were the attraction - the talent-intensive services for people sectorof the market and the degree of industrial development,the access to talent and the level of infrastructures. 11.• Although there is general satisfaction with the level The growing trend among large multinational corpora-of infrastructures finally attained in the Barcelona area, tions to create global specialist centres and sharedthree especially important shortcomings are noted for service centres (SSC) is seen as a major opportunity forthe economic enhancement of the Barcelona area: the attracting foreign investment to the Barcelona area.Mediterranean rail axis, the intermodal connections with The creation of global specialist centres is the result ofthe Port of Barcelona as backbone, and the still scant the strategy of large corporations to optimise the geo-intercontinental connections with Barcelona airport. graphical locations of the various business activities in terms of their business, prioritising the functional and/orHowever, the good image and operation achieved in product line specialisation.macro-infrastructures has to have its counterpart on amicro scale in the respective business parks and indus- A parallel development is the creation of corporatetrial estates. shared service centres (SSC) that centralise the provision of services (for example, information systems, purchas-• Highlighted in the qualitative parameters are the quality ing, administration) that were previously provided locallyof life, the characteristics of an attractive and cosmopoli- in each subsidiary.
22 FOREIGN INVESTMENT IN THE BARCELONA AREA 231. FDI in the worldInward foreign direct investment (FDI) flows world- The recovery of FDI compares with world GDP, whichwide in 2010 totalled 1,244 billion dollars, an increase returned in 2010 to a similar level of growth as 2007.of 5% compared with the previous year, after threeconsecutive years of decrease. 2Inward foreign direct investment (FDI) flows worldwide in Percentage evolution of GDP of FDI in the2010 totalled 1,244 billion dollars according to the World world, 2007-2010Investment Report 2011, published by the UNCTAD(United Nations Conference on Trade and Development), 40% 34.8%an increase of 5% compared with the previous year. Al- 30%though this figure represents a recovery after the succes- 20%sive falls experienced in 2008 and 2009, world FDI is still 4.9% 10%far from the volume of 2007, which was a historical high: 3.9% 1.6% 3.6% 0% -2.0% -10% -11.5%1 -20% -32.1%World foreign direct investment: absolute -30%flows and annual variations, 2007-2010 -40% 2007 2008 2009 2010 % annual variation FDI $1,971 % annual variation GDP $2,000 35% 40.0% $1,744 $1,800 30.0% $1,600 Sources: UNCTAD. World Investment Report 2011; United Nations World 20.0% $1,400 $1,244 $1,185 Economic Situation and Prospects 2011 $1,200 10.0% 5% $1,000 0.0% $800 -12% -10.0% $600 $400 -20.0% After a year of weak and uneven recovery, global eco- -32% $200 -30.0% nomic growth slowed down in mid-2010. According to the $0 -40.0% United Nations World Economic Situation and Prospects 2007 2008 2009 2010 2011, the slowdown is expected to continue in 2011 World FDI (billions USD) and 2012. The forecast is surrounded by a great deal of % annual variation uncertainty and serious risks of worsening.Source: UNCTAD. World Investment Report 2011 The United Nations base growth forecast for world GDP stands at 3.1% for 2011 and 3.5% for 2012, below the growth rates prior to the crisis. According to the UNCTAD, world FDI flows in 2011 will be between 1,300 and 1,500 billion dollars, and will rise in 2012 to around 1,600-2,000 billion dollars.
24 FOREIGN INVESTMENT IN THE BARCELONA AREA 25FDI flows in the developing economies have recovered Greenfield investments have continued to fall since By sector, the manufacturing sector has experiencedto stand at over 50% of all worldwide FDI. 2008 to almost half. Mergers and acquisitions have a +23% recovery compared with 2010 and has gained dropped even more, falling to a third of the value relative weight in total FDI, reaching 48%.FDI flows in the developed economies (Europe, North reached in 2007.America, Japan, Israel, Bermuda, Australia and New With regard to the productive sectors of world FDI afterZealand) held steady in 2010 at practically the same Greenfield investments reached their highest point in 2008, the manufacturing sector stands out, having seenlevel as the previous year. Elsewhere, flows in the devel- 2008, subsequently falling dramatically the following a +23% recovery. Apart from this, the services sectoroping economies rallied considerably and grew by 10% to year and even more in 2010. The volume of greenfield (-14%) and the primary sector (-30%) have decreasedreach over 50% of inward FDI world-wide for the first time investments fell by 655 billion dollars between 2008 and remarkably.since 2007. 2010, some 55%. The sectorial distribution of FDI in 2010 is clearly based For their part, mergers and acquisitions underwent an on manufacturing (48%), while the rest is divided similarly3 even more dramatic fall in the 2007-2009 period to between services (29%) and the primary sector (22%).World foreign direct investment: annual the point in 2009 when they stood at a quarter of theinward flows by type of economy, 2007-2010 volume reached two years earlier. By contrast, a change in the trend was seen in 2010 with a significant recovery compared with the previous year (+36%), although the $2,000 volume (339 billion dollars) continues to be very far from $1,800 $1,600 $664 that of 2007 (1,023 billion dollars). $1,400 $779 $1,200 $1,000 $582 $642 4 $800 $600 $1,307 Greenfield investments and mergers and $965 $400 $603 acquisitions from worldwide foreign direct $602 $200 investment (billions USD), 2007-2010 $0 2007 2008 2009 2010 developing economies (billions USD) $2,500 developed economies (billions USD) $2,000Source: UNCTAD. World Investment Report 2011 $1,500 $940 $1,462 $1,000 $952 $807After a sharp collapse of world FDI in 2009, the devel- $500 $1.023 $707oping economies have grown higher than the world $0 $250 $339average, which has offset the stagnation of FDI in the 2007 2008 2009 2010developed economies, which emerged from two consecu-tive years of severe decline (-26% in 2008 and -38% greenfield investments mergers and acquisitionsin 2009). Source: UNCTAD. World Investment Report 2011
26 FOREIGN INVESTMENT IN THE BARCELONA AREA 272. Inward FDIin SpainInward FDI in Spain experienced an upturn in 2010 Spain’s share in worldwide inward FDI fell by two per- The fall in relative weight of the European Union, With regard to the principal outward FDI countries intodespite standing at one-third of the maximum reached centage points compared with 2008. which was dramatic in 2008, continued a slow decline Spain, the following graph shows the 10 main countriesin 2008. to reach 24% of the share of inward FDI in the world in whose companies made the greatest direct investment Spain’s share in inward FDI flows in the world reached 2010. in Spain in the 2006-2010 period, arranged as a percent-According to the UNCTAD World Investment Report 2011, 2% in 2010, leaving it in 16th place among receiving age by order of importance.gross inward FDI in Spain was 24.5 billion dollars in countries. The EU’s share as a recipient of FDI flows has fallen by2010, representing an increase of 168% compared with between 15 and 20 percentage points since 2008. Inthe previous year and a marked change in trend com- In 2010, the United States recovered the worldwide 2010, it recorded a 12% fall in FDI, motivated especially 8pared with the sharp decline it underwent in 2009.2 inward FDI share that it had in 2008. As regards the by the economies of the Netherlands, the United Share of the principal outward FDI countries emerging countries, China (including Hong Kong), Brazil Kingdom and Italy. into Spain, 2006-2010 (in %) and Russia increased their share in worldwide FDI in re-5 cent years. Of note is the relative loss in weight of India’sEvolution of foreign direct investment in share, despite the FDI inflow having risen in absolute 7 18%the world, in the European Union and in Spain value. variation in absolute values of inward FDI in 16% 16% 16%(billions USD), 2007-2010 the European Union, 2009- 2010 (billions USD) 14% 12% 11% 10% 9% 6 10% $2,000 8% World ranking of the principal FDI recipient $-51 $-31 $-11 $9 $29 $49 7% $1,800 6% 6% countries, 2010 (in % total world FDI) 5% $1,600 $38 Belgium 4% 3% 3% $1,400 $15 Spain 2% $9 Germany 0% $1,200 -$10 Italy ly m es y o s ce g da s an nd te ur ic Ita $1,000 do at an na ex ira bo rm la St ng Fr Ca M $-25 United Kingdom er Em 0.0% 5.0% 10.0% 15.0% 20.0% m Ge Ki d th xe $800 te ab d Ne Lu i te Un $-42 European Union Ar i Un $600 18.4% United States $-51 Netherlands $400 8.5% China $200 5.5% Hong Kong Source: Own production based on Datainvex, Ministry for Economy & $0 Spain 5.0% Belgium Competitivity 2007 2008 2009 2010 European Union 3.9% Brazil Source: Own production based on UNCTAD. World Investment Report World Germany 3.7% 2011 It should be highlighted that Italy and the United King- 3.7% United Kingdom dom provided a third of the total inward FDI in Spain, and 3.3% RussiaFont: UNCTAD. World Investment Report 2011 3.1% Singapore that together with the United States and Germany, they 2.7% France In this context, Spain is far from the share it had in 2008, accounted for half the total. 2.6% Australia when with almost 77 billion dollars, it reached 4.4% ofSpain’s recovery compares with the continued fall in FDI 2.5% Virgin Islands worldwide inward FDI. Since then, it has lost relative With regard to the sectorial distribution of inward FDI inin the European Union since 2008 (-43%), 2009 (-29%) 2.3% Saudi Arabia weight in the world share of FDI. However, the principal Spain, 2010 shows a clear orientation towards the manu- 2.1% Irelandand 2010 (-12%). On a world scale, the collapse in FDI FDI recipients in the European Union have also lost facturing and goods-production sector, with services to a 2.0% Indiahas been less pronounced than in the EU: -12% (2008), ground in their world share, with the exception of Ireland lesser extent. 2.0% Spain-32% (2009) and +5% (2010). and Germany. Specifically, with 59% of the inward FDI in 2010, industry led services (36%) in inflows of foreign investment in Source: UNCTAD. World Investment Report 2011 Spain.2. In order to be able to make a homogeneous comparison of trends worldwide, Despite this, investment in absolute terms in industry fellin the European Union and in Spain, data provided by UNCTAD have been used.However, it should be noted that there are significant disparities with the data by half compared with 2007 levels. By contrast, servicesprovided by the Spanish Ministry for Economy & Competitivity in the Datainvex stand at the same level, despite the strong increase indatabase, which are regularly updated up to two years after the end date of aspecific period. 2008.
28 FOREIGN INVESTMENT IN THE BARCELONA AREA 293. Inward FDI inCataloniaAfter the collapse experienced in 2009, gross inward 10 The strong increase in 2010 of gross foreign investment Gross productive foreign investment in Catalonia in theFDI in Catalonia saw a strong upturn. Productive in- Evolution of Catalonia’s share in inward FDI in excluding ETVEs (holding companies) in Catalonia (180%) first semester of 2011 stood at 937 million euros, anvestment represented 87% of total inward FDI. Spain, 2006-2010 (in %) compares with the contraction of this indicator in Spain increase of 11% compared with the same period in 2010. (-5%).Gross inward FDI in Catalonia stood at 4.52 billion euros, With regard to geographical areas, the OECD is the most 22%the highest level in the last five years, representing 19% 20% important source (98%) of inward FDI in Catalonia. The 19%of inward FDI in Spain. 12 EU-27 represented 96% of inward productive FDI in 2010. Distribution of gross inward FDI in Catalonia, 15% 2009–2010 (in millions)9 10% 11% 14 10%Evolution of gross inward FDI in Catalonia, Geographic origin of gross inward €5,0002007-2010 (in millions) 7% €4,520 productive FDI in Catalonia – 2010 5% €4,000 €3,952 €3,000 0% €4,000 €5,000 2006 2007 2008 2009 2010 €3,807 €4,520 €2,000 €1,874 €3,500 €4,500 % Cat of Spain €1,410 €4,000 €3,811 €3,000 €1,000 €3,500 €568 €2,500 €3,128 €464 €3,000 €2,764 Source: Foreign Investments Register, Ministry for Economy & Competi- €2,000 €0 €2,500 tivity and Invest in Catalonia - ACC1Ó €1,874 2009 2010 €1,500 €2,000 €1,500 Total gross investment €1,000 €1,000 Gross investment excluding ETVEs €500 €145 €500 In 2010, total gross productive foreign investment in Gross investment in ETVEs €0 €0 Catalonia (that is, discounting flows received by ETVEs) 2010 2006 2007 2008 2009 2010 was 3,952 billion euros (87% of the total), which is the Source: Foreign Investments Register, Ministry for Economy & Competi- EU-27 best recorded since this variable has been measured. tivity and Invest in Catalonia - ACC1Ó rest of the worldSource: Foreign Investments Register, Ministry for Economy & Competi- Source: Foreign Investments Register, Ministry for Economy & Competi-tivity and Invest in Catalonia - ACC1Ó 11 13 tivity and Invest in Catalonia - ACC1Ó Distribution of gross inward FDI in Catalonia, Distribution of gross inward FDI in Spain, 2010 (in % and absolute values in millions€) 2009–2010 (in millions)In the first semester of 2011, total inward FDI in Catalo- The Netherlands, France and the United Kingdom ac-nia stood at 1.144 billion euros, 30% more than the first counted for almost 80% of the inward productive FDI in €25,000 €23,415semester of 2010, a figure that would appear to confirm 2010. We should stress the high weight of the Nether-a change in trend. €20,000 lands, with nearly half the total, although it should be €568 €16,544 considered that many multinational companies use the €15,000Despite this, we should remember that in recent years, €12,249 €11,778 Netherlands as a springboard from which to invest in €11,637the proportion of productive FDI aimed at Catalonia €3,952 €10,000 EU countries owing to the favourable fiscal treatment itwithin Spain fell considerably, standing at figures of less offers foreign investors. €5,000 €4,295than or slightly above 10%, far from those of the 2000-2006 period, as can be seen in the following graph. gross investment excluding ETVEs €0 gross investment in ETVEs 2009 2010 total gross investment gross investment excluding ETVEs Source: Foreign Investments Register, Ministry for Economy & Competi- gross investment in ETVEs tivity and Invest in Catalonia - ACC1Ó Source: Foreign Investments Register, Ministry for Economy & Competi- tivity and Invest in Catalonia - ACC1Ó