United Kingdom: Investing
FDI in Figures | Why You Should Choose to Invest in the United Kingdom | Procedures Relative to Foreign Investment | Investment Opportunities
According to the World Investment Report 2010 of the United Nations Conference on Trade and Development (UNCTAD), the United Kingdom is the fifth highest recipient of direct foreign investment (FDI) in the world. In 2008-2009, FDI flow was on the decline and this trend should continue in the coming years. FDI flux decreased sharply since the international financial crisis and should remain low in the coming years.
The UK nevertheless has real strengths: London still seems to be Europe's financial capital. Furthermore, Great Britain has a strong currency and one of the most important European markets.
| United Kingdom | OECD | United States | Germany | |
| Index of Transaction Transparency* | 10.0 | 6.0 | 7.0 | 5.0 |
| Index of Manager’s Responsibility** | 7.0 | 5.2 | 9.0 | 5.0 |
| Index of Shareholders’ Power*** | 7.0 | 6.8 | 9.0 | 5.0 |
| Index of Investor Protection**** | 8.0 | 6.0 | 8.3 | 5.0 |
Source: Doing Business - Last Available Data.
Note: *The Greater the Index, the More Transparent the Conditions of Transactions. **The Greater the Index, the More the Manager is Personally Responsible. *** The Greater the Index, the Easier it Will Be For Shareholders to Take Legal Action. **** The Greater the Index, the Higher the Level of Investor Protection.
| Foreign Direct Investment | 2008 | 2009 | 2010 |
| FDI Inward Flow (million USD) | 91,487 | 71,140 | 45,908 |
| FDI Stock (million USD) | 980,920 | 1,056,399 | 1,086,143 |
| Performance Index*, Ranking on 141 Economies | 78 | 73 | - |
| Potential Index**, Ranking on 141 Economies | 8 | - | - |
| Number of Greenfield Investments*** | 873 | 1,036 | - |
| FDI Inwards (in % of GFCF****) | 20.5 | 29.0 | - |
| FDI Stock (in % of GDP) | 36.8 | 51.7 | - |
Source: UNCTAD - Last Available Data.
Note: * The UNCTAD Inward FDI Performance Index is Based on a Ratio of the Country's Share in Global FDI Inflows and its Share in Global GDP. ** The UNCTAD Inward FDI Potential Index is Based on 12 Economic and Structural Variables Such as GDP, Foreign Trade, FDI, Infrastructures, Energy Use, R&D, Education, Country Risk. *** Green Field Investments Are a Form of Foreign Direct Investment Where a Parent Company Starts a New Venture in a Foreign Country By Constructing New Operational Facilities From the Ground Up. **** Gross Fixed Capital Formation (GFCF) Measures the Value of Additions to Fixed Assets Purchased By Business, Government and Households Less Disposals of Fixed Assets Sold Off or Scrapped.
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Last Updates: January 2012