The UK’s finance industry kept its lead over the rest of Europe in attracting foreign investment last year, although activity across the region slowed, according to professional services firm EY.
The country attracted foreign investment for 73 finance projects last year, down by 32% on the prior year, while in second-place Germany, deal volumes fell 16% to 32. Throughout Europe, volumes fell 11%, EY found.
Global investors also saw London as the most attractive European city for financial services foreign investment over the coming year, beating out Frankfurt and Paris, although at a national level, Germany was the preferred choice for the future.
With Donald Trump’s tariff announcements clouding the outlook, the poll found just 32% were likely to invest in the US, compared to 39% in the EU and 44% for the UK.
“The strength and depth of the UK’s financial services sector continues to capture global investor confidence – particularly as they navigate challenging market conditions,” said Martina Keane, managing partner at EY UK and Ireland financial services. However, she said competition remained fierce for available financing.