Helsinki: A world class destination for foreign direct investment
Helsinki region is the 7th best European city for businesses and foreign investors. Photo: City of Helsinki Media Bank / Lauri Rotko
Europe is again one of the most attractive regions in the world for foreign investors, with Finland proving to be an ideal destination for business, according to global league tables.
Ernst & Young’s 2015 European attractiveness survey placed the Helsinki-Uusimaa region as the seventh best European city for businesses and foreign investors. Helsinki receives the majority of inward investments in Finland. The 2015 survey is based on economic data from 2014.
Top 10 urban areas by projects.
Finland was ranked ranked eleventh compared to our European neighbours. The previous year Finland ranked ninth in the survey and witnessed a 44% increase in FDI.
Top 15 countries by FDI projects.
In 2014 Finland also first made an appearance in the EY league Top 10 as the fastest growing city for FDI, according to EY European Investment Monitor (EIM) figures. This increase was “mainly driven by new sales and marketing operations, especially in software and business services.”
Given the improving economic outlook for Europe, investors are now more confident than ever about the future.
Europe’s attractiveness is improving.
Win the talent war in Helsinki
Helsinki is home to one of the most highly skilled, well-educated workforces in the world. Over a third have higher education degrees, with the region acting as a hub of innovation and R&D facilities.The availability of competent labour is one of the most important factors influencing FDI decisions, according to several reports and surveys over the years.
Within a European context, this puts Finland in a strong position to compete for inward investment. Sweden, the UK, United States, France and Norway are the top five investor countries, with most of the 229 foreign-owned companies picking the Helsinki Region as their base of operations in Finland.
Investors playing it safe?
Statistics Finland data will be released later in the year, but many expect it to show year-on-year growth for 2014, supporting the Ernst & Young survey results.
In 2014, the main sectors driving this inward investment were ICT (particularly automotive, health and cybersecurity), business services, healthcare, retail and environmental technology.
Helsinki is considered ideal for a few reasons: location, global connections, a highly educated workforce and quality of life, which is perhaps why it receives 83% of Finland’s overall FDI.
Whilst investor appetite for risk has increased, those looking for returns are placing safer bets, which explains the gains made in Western Europe & North America (5 and 8 points respectively, since 2013), at the expense of China and Central & Eastern Europe (minus 6 and 1 point, respectively).
FDI projects and jobs in Europe.
For investors wanting to place a safe, but profitable bet, the most recent data (for year-end 2013) shows that for €63.2 billion invested, Finland can generate €2.7 billion in returns (4.3%).
Whether businesses or investors are looking for merger & acquisitions opportunities, make an investment, or establish Baltic operations or R&D facilities, Finland and the greater Helsinki Region has a lot to offer.
This HBH statement on cookies and related technologies applies to the use of such technologies when you visit this website.
What are cookies and why we use them?
Cookies are small text files stored on your device by websites you visit.
Cookies alone cannot be used to identify you, but they may be linked directly or indirectly to you when combined with other information. In these cases, cookies may be treated as personal data. We make no effort to identify you personally from cookies.
Cookies can either be session cookies (they last only until you close your browser) or persistent (they remain on your computer or device until you delete them). Session cookies are usually used to remember relevant settings of your browsing session. Persistent cookies may typically be used for targeted advertising and gaining insight on how you use our website. We use both session and persistent cookies. Our persistent cookies are set to expire no later than two years after last refresh.
Collect statistical information on the use of our website. This helps us measure the effect of our marketing efforts and guides us in providing you with a better service. Depending on your browser settings, some of this information may also be shared with third-party service providers (e.g. Google Analytics).
Provide relevant content. Cookies allow us to tailor site's content to better match your needs and interests.
Please note that if you disable cookies, some website functionality may be limited.
Essential website cookies
These cookies are strictly necessary to provide you with services available through our website and to use some of its features.
Because these cookies are strictly necessary to deliver the website, you cannot refuse them without impacting how our site functions. You can block or delete them by changing your browser settings and force blocking all cookies on this website.
Google Analytics cookies
These cookies collect information that is used either in aggregate form to help us understand how our website is being used or how effective our marketing campaigns are, or to help us customize our website and application for you in order to enhance your experience.
If you do not want that we track your visits to our site you can disable tracking in your browser here:
Other external services
We also use different external services like Google Maps and external video providers. Since these providers may collect personal data like your IP address we allow you to block them here. Please be aware that this might heavily reduce the functionality and appearance of our site. Changes will take effect once you reload the page.