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In 2023, the number of financial services foreign direct investment (FDI) projects across Europe rose to 329. This marks a 13% increase from 2022. The United Kingdom led the European market, recording 108 financial services projects, a notable 42% rise from the previous year. France secured second place with 39 projects, a 13% decrease from 2022. Whereas, Germany followed closely with 38 projects, reflecting a 23% increase year-on-year.

The United Kingdom accounted for a third (33%) of all European financial services FDI projects in 2023. 35% of these projects originate from the United States. This dominance confirms the UK’s status as Europe’s most attractive destination for FDI in financial services. According to EY’s latest Attractiveness Survey for Financial Services, the UK has significantly extended its lead over other European markets. In 2023, the UK attracted 108 financial services projects, up from 76 in 2022. In contrast, France, with 39 projects in 2023, saw a decline from 45 projects in 2022. Germany, in third place, recorded 38 projects in 2023, an increase from 31 in 2022. Spain, ranking fourth, experienced a drop from 31 projects in 2022 to 17 in 2023.

Across Europe, financial services FDI projects grew from 292 in 2022 to 329 in 2023, representing a 13% year-on-year increase. This growth surpassed the overall European FDI project growth, which declined by 4% during the same period. In contrast, other professional services sectors, such as technology and business services, experienced declines in project numbers, with year-on-year decreases of 19% and 27%, respectively.

In 2023, the UK held 33% of all European financial services FDI projects, up from 26% in 2022. France and Germany each accounted for 12% of the projects, while Spain secured 5%. The UK also saw a rise in ‘new’ financial services projects, reaching the highest market share of new projects in a decade. New financial services projects across Europe and the UK hit their highest level since 2019, increasing to 233 projects in 2023 from 215 in 2022. The UK recorded 85 new projects in 2023, a 25% increase from 68 projects in 2022, boosting the UK’s market share of new financial services projects from 32% in 2022 to 36% in 2023, the highest in a decade. In comparison, Germany attracted 32 new projects, up from 12 in 2022, and France secured 22 new projects, down from 26 the previous year.

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