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London First Center: London Remains Europe’s Top Destination For Foreign Investment for Sixth Year Running

For the sixth year running, London has retained its position as the leading destination for foreign direct investment in Europe, according to the Ernst & Young European Investment Monitor. London remains by far the most popular business destination in Europe with 112 new investments in 2003, representing nearly 6% of all investment into Europe. Indeed, London remains in a league of its own, taking a 25% market share among the 20 most successful cities. It receives over double the investment of second and third-placed cities Moscow and Barcelona and five times that of its traditional rival Paris.

London’s performance is proof that despite increased competition from emerging markets, particularly in Eastern Europe, London’s offer remains strongly compelling. Michael Charlton, Chief Executive of inward investment agency London First Centre, said: “Yet again London has proven to be Europe’s most popular business location, offering international companies unrivalled opportunities for growth. Companies from across the globe profit here from a world-beating combination of factors, including unparalleled access to all markets, a comprehensive and high-quality property market, a powerful communications infrastructure and the most diverse and skilled workforce in Europe.”

Marc Stephens, the London Development Agency's Executive Director, Business and Skills, added: "The continued pre-eminence of London as an investment destination is good for Londoners and the UK. As a World City London could do even more. Sustained investment in infrastructure and workforce skills is essential to ensure London achieves this potential."

London clearly remains the city where the world comes to do business, increasingly becoming the location of choice for investors from emerging markets. London’s cosmopolitan make-up means it continues to draw investment from an increasingly-wide range of countries, including Zimbabwe, the Philippines and Russia. 2003 saw investment from 27 different nations and, in addition to traditional markets, China, India and Israel are fast emerging as key investors in the capital. Specifically, London remains particularly attractive for companies looking to establish European headquarters functions, receiving 17% of all headquarters investments in Europe.

London continued to serve as the gateway to the United Kingdom with investment in London translating into investment into the rest of the country. The UK had a highly successful 2003, retaining its number one position and indeed increasing its market share to 23% in 2003 from 19% in 2002 of all European investment projects. Sectors showing strong growth were business services, food, financial services and pharmaceuticals.

Among London First Centre’s recent successes were new European headquarters for Basis Technologies, an Australian IT company specialising in corporate software products; Intas Pharmaceuticals, one of India’s fastest-growing firms; the Korea Culture and Content Agency, an enterprise assisting Korean SMEs in creative industries into the European market; and Chuang Sheng Electronics, a leading Chinese manufacturer of computer hardware.

To view the Ernst & Young European Investment Monitor, please click here: http://www.lfc.co.uk/publications/bb_2439.pdf

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Anna Barlow, Executive Director Marketing and Communications, London First Centre

Tel: +44 (0) 20 7665 1503 abarlow@lfc.co.uk Fax: +44 (0)20 7925 2022

Notes to editors

London First Centre is the inward investment agency for the capital. It is a private and public sector partnership supported by the London business community through London First, the London Development Agency, UK Trade & Investment and the Corporation of London. In nine years of operation, London First Centre’s free consultancy service has directly assisted nearly 700 companies from 35 countries around the world to locate or expand in the capital, leading to the creation of some 32,000 jobs. www.lfc.co.uk

London First is a business organisation supported by over 300 of the capital’s major businesses. Its mission is to improve and promote London. London First’s business members are in key sectors such as finance, professional services, property, IT, creative industries, hospitality and retail. Its membership also includes virtually all the higher education institutions, as well as further education colleges, NHS trusts and independent hospitals. www.london-first.co.uk

The London Development Agency is the Mayor's agency for business and jobs. The LDA prepares the Mayor's business plan for London and mobilises the support and resources of hundreds of partner organisations to help build a thriving economy for London's people, businesses and communities. The LDA is dedicated to improving sustainability, health and equality of opportunity for Londoners. www.lda.gov.uk

Ernst & Young's European Investment Monitor is the most comprehensive source of information on foreign direct investment projects announced throughout Europe. Details include: parent company undertaking the investment and country of origin; city, region and country receiving the investment project; mode of investment (new, expanding or co-locating); industry sector and activity type (eg head office, contact centre); and employment created/safeguarded.