Attracting Global Capital in an Era of Unprecedented Competition
In an era of unprecedented competition for global capital, every nation needs an edge.
Foreign Direct Investment (FDI) reached a total of $870 billion (£620 billion) in the first half of 2021 according to the OECD, with the UK receiving 5 percent of this figure - the third highest level of investment received by any country worldwide behind China and the United States.
New horizons present challenges, but also opportunities within a network of open and consolidating trading blocs. In an era of Global Britain, to attract this kind of investment from abroad, the UK will have to differentiate itself to avoid losing out. FDI and the relationships we forge with other countries will be crucial going forward, with burgeoning industries like life sciences, advanced engineering, aerospace, and software development set to play a major role in securing it.
The communities central to the Arc are among the fastest-maturing technological hubs in the country. Milton Keynes is consistently ranked by the Centre for Economics and Business Research as one of the most rapidly growing towns for IT and digital services in the UK, while Luton has carved out a pioneering role in advanced aviation engineering.
To attract foreign investment, people with experience of international markets – that understand their nuances, priorities and business etiquette – must play a key role. While much has been made of the traditional pull factors for FDI, the importance of prioritising social as well as economic returns needs to be elevated.