fDi Markets recorded a record year for foreign direct investment in Luxembourg during 2017, with the country experiencing its most successful year to date since the greenfield investment monitor began recording data in 2003. Data is currently only available up to November 2017, but project numbers have already surpassed 2016 full-year results, recording an additional 18 investments thus far.
Between 2013 and 2015, FDI into Luxembourg was on a downward trend, with project numbers dropping from 25 in 2013 to 18 in 2014 and 11 in 2015. However, since 2015, project numbers, capital investment and job creation have all seen a sharp rise. During 2016, a total of 19 projects were recorded, an increase of 72% on the previous year. In 2017 (January to November), project numbers grew a further 94% to 37 projects; a record year for Luxembourg. Job creation in the country has also been rising year on year since 2015; with 267 jobs created in 2015 777 in 2016 and 1988 between January and November 2017 which is a 645% increase overall. Data also shows that capital investment jumped from $111.4m in 2015; to $364.6m in 2016 and $2.05bn so far in 2017; a staggering overall rise of 1740%.
Between January and November 2017, the US was the top investor in Luxembourg with a total of 15 projects. The UK ranked second with five investments and China placed third with four projects. The leading industry sectors for investment during January 2013 and November 2017 were financial services, software and IT services and business services.
During 2017, a number of projects recorded by FDI markets cited Brexit as a reason for choosing to invest in Luxembourg. These companies include US International Group, Hiscox, JPMorgan Chase, RSA Insurance Group, Liberty Specialty Markets and MJ Hudson. The country is hoping to capitalise on Brexit and attract more financial institutions wishing to maintain a base in the EU.