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Total foreign investment in shareholdings in Spain has grown exponentially in gross terms over 2007, recording a rise of 163%, amounting to 36.031 billion euros, and in net terms it has grown seven and a half times over, reaching 26.877 billion euros.

Madrid, 16.06.08. Total foreign investment in shareholdings in Spain has grown exponentially in gross terms over 2007, recording a rise of 163%, amounting to 36.031 billion euros, and in net terms it has grown seven and a half times over, reaching 26.877 billion euros.

 

Gross investment over the financial year 2007, is the second highest on record since 1993, only beaten by the year 2000 when inward investment stood at 38.404 billion euros.

 

Nearly 50% of this amount can be accounted for by the acquisition of a Spanish electricity company. Nonetheless, when this transaction is deducted the trend observed is still very positive: total foreign investment grew by nearly 33% in gross terms and more than 153% in net terms.

 

In 2007, gross productive investment in Spain, in other words excluding ETVEs , also recorded significant growth amounting to 28.849 billion euros, 196% more than in 2006, and 12.4% up if the aforementioned transaction in the energy sector is not included.

 

Acquisitions, which account for 67% of the foreign investment recorded, predominated in 2007 as opposed to capital expansions which prevailed in previous years, resulting from earlier acquisitions.

 

As regards disinvestments, 94.1% can be accounted for by sales to Spanish residents, with only 1.1% corresponding to cases of liquidation. This minimizes the impact of disinvestments on employment and economic activity as these are maintained when businesses change hands between foreign and Spanish companies.

 

Spanish outward investment in 2007

Direct Spanish outward investment continues to be extremely dynamic and grew by 44.2% in 2007, even surpassing 2006, which had been a record year. The 2007 figure of 90.955 billion euros is 27 billion euros higher than the absolute peak for 2006, when Spain ranked third in outward direct investment in the world, behind the United States and France.

 

Although disinvestments increased from 7.32 billion to 17 billion euros, net investment rose by 32.7%, scoring another record high of 73.996 billion euros.

 

The expansion of Spanish outward direct investment in 2007 can be ascribed to the growing internationalization of Spanish companies, a process which started over a decade ago, as well as to the high-profile acquisition of a foreign company in the financial sector by a Spanish bank, which accounts for 20% of total gross investment.

 

The Netherlands ranks top in the immediate destination for Spanish investment thanks to the major transaction in the financial sector referred to above, with the United Kingdom and the United States in second and third place respectively.

 

As far as economic areas are concerned, over 92% of outflows go to OECD countries, and there is also a positive trend in Spanish investment in Latin America, after several years of favoring the EU over the latter.

 

Position or stock of foreign investment in Spain as of December 31, 2006

The position of foreign investment stock in Spain rose as of December 31, 2006 to 273.208 billion euros, 5.3% up on the previous year.

 

Out of the two items constituting this position, equity capital accounts for 75.5% of the total and this has increased 6.5% on a year-on-year basis; on the other hand, external financing of companies in a group has increased by 1.8%, rising to 66.797 billion in comparison to 2005.

 

This increase in the position of foreign investment is also associated with an increase in fixed assets, jobs and turnover of direct investment companies. The rise of nearly 10% in tangible fixed assets by direct investment companies in Spain shows that the latter have strengthened the value of their fixed assets in 2006. The employment created by these foreign capital companies translates into 1,321,233 jobs, 2.9% up on the previous year.

 

Position or stock of Spanish outward investment as of December 31, 2006
The value of Spanish outward investment has increased by 19.5% over 2006, with an increase in absolute value of 47.837 billion euros, rising to 293.079 billion euros, which exceeds the value of the foreign investment stock in Spain by nearly 20 billion euros.

 

This increase is mainly due to the growth in equity capital, as financing in the form of loans is falling, accounting for only 2.2% of its global position.

 

The turnover and results posted by Spanish direct outward investment companies have recorded year-on-year increases above 10%, soaring to 58.6% in the case of business performance in companies other than ETVEs.

 

INTERES Invest in Spain

INTERES Invest in Spain is the Government agency dedicated to promoting and attracting foreign investment, part of the State Department for Tourism and Trade of the Ministry of Industry, Tourism and Trade. Its mission is to promote, attract and maintain foreign investment in Spain, serving as the reference point for foreign investors and the point of contact for all state, regional and local institutions engaged in promoting and attracting investment.

 

It focuses on implementing pro-active promotion policy, targeting sectors where Spain holds competitive advantages in the medium and long term. INTERES Invest in Spain also aims to strike strategic alliances with all Institutions that attract and promote Foreign Investment (FDI), with a view to leveraging initiatives and setting up a network to enhance their impact.

NOTE
Via the website of the Department of Trade, www.comercio.es you can access data on outward investments since 1993.

 

The data provided here and those included at www.comercio.es are of a provisional nature and may be subject to change as the result of the ongoing process of treating and updating information.

 

FOR MORE INFORMATION

Department of Trade
prensa@mityc.es
TEL: 91 349 48 39 - 40

INTERES Press Office INTERES Marketing and Communications Director
Tel: 91 788 32 00 / 91 788 32 31 Ana García Camarillo
monica.escusa@ketchum.es Tel: 91 503 58 00
silvia.allende@ketchum.es agarcia@interes.org

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