Spain attracted 11% of foreign direct investment (FDI) projects in Europe in 2022 in the financial services sector, according to the latest EY Attractiveness Report published by the consultancy firm in the UK. A total of 31 FDI projects in this industry were awarded to Spain last year.

These figures put Spain in third place in the European ranking, tied with Germany. Spain has withstood the German push to win projects, having dropped from 39 FDI projects in financial services in 2021. Meanwhile, Spain’s northern neighbour, France, increased its number of projects by two, its first growth in this ranking since 2018, when it achieved 81 projects.

Ranking by city
The United Kingdom retained the top spot and grew by 17% to 76 projects, widening its gap with France, which dropped 25% compared to 2021 and attracted 45 projects. The data, obtained through EY's latest financial services attractiveness survey, shows that the UK was awarded thirteen more projects than the previous year, with its  cross-Channel neighbour losing 15, the gap thereby widening from three to 31 projects.

The ranking by city follows almost the same pattern, with Madrid in third place behind London and Paris. The Spanish capital attracted 22 projects in 2022 compared to 29 in 2021; London increased from 39 to 46 and Paris fell from 38 to 35. In the city ranking, Spain's capital city has the podium all to itself, and is followed by Milan, which increased from eight to 16 projects.

Job creation
Overall, FDI in financial services grew by 5% in Europe last year, from 277 projects in 2021 to 292. Growth was higher than for FDI projects in general, which only grew by 1% during that period. EY blames this stagnation on the war in Ukraine, high energy prices and inflation.

Job creation linked to FDI in financial services also increased across Europe in 2022. Using employment figures from the projects included in the survey, the report talks about 10,708 new jobs in 2022, up from 8,948 in 2021, which translates into a 20% increase.

Europe's financial centres
Managing Partner for EMEIA Financial Services at EY, Omar Ali, interpreted this data and said that, “This is testament to the underlying capability, experience and skills found in Europe's financial centres, and demonstrates global investors’ sustained confidence even in turbulent times”.

As usual, the United States stands out among the main players in FDI in financial services and is the source of 79 projects, five more than in 2021. In fact, 27% of the financial projects that Europe received in 2022 came from the United States.