Top-level foreign direct investment in the Netherlands again despite crisis

Growth markets like India and China in particular invest more in the Netherlands 

Amsterdam, 27 May 2010 - Despite the economic crisis a large number of foreign companies have established themselves in the Netherlands again last year. The number of investment projects remained more or less the same in comparison with record year 2008 (from 256 to 253). The interest in the Netherlands shown by growth countries like India and China is remarkable. They are responsible for a quarter of the new investment projects. With that the Netherlands is continuing the trend that relatively stable economies can put up considerable resistance in times of economic crisis. 

Consultancy firm IBM today published the results of its annual analysis, mapping the foreign investments in the Netherlands. Besides a stable investment climate, there are number of other striking conclusions: 

• The number of new jobs created as a result of these investments last year remained almost stable at 6,800 in comparison with 2008 (in 2008: 6,900).
• China and India are becoming increasingly more important investors in the Netherlands with a combined 15% of all projects and 9% of all new jobs related to foreign investments. Adding other growth countries (like e.g. Brazil) these shares are resp. 25% and 19%. The US remains the most important foreign investor in the Netherlands (34% of all jobs), followed by the larger European economies Germany (12%), France (7%) and the United Kingdom (6%).
• The business services sector continued its increasing share in foreign investments, and is now responsible for 16% of all jobs. The sector is preceding the chemical sector (12%, still the most important sector last year) and the ICT sector (also 12%).
• However, the average number of jobs per project remains historically low with a level of 27 new jobs per project.
• The Netherlands remains an outstanding services country: 84% of the projects (with 73% of the number of jobs) has a service or logistic function. The importance of production activities is gradually diminishing and R&D remains at a low level.
• The province of North Holland attracted the most projects and jobs again, resp. 41% and 25%. The province of North Brabant follows with 16% of both the numbers of projects and jobs.
• The city ranking continues to headed by Amsterdam, welcoming 1,600 new jobs with 95 investment projects. 

"Although from a global perspective less new investments have taken place over the past two years, the Netherlands continues to be a stable and interesting investment location," according to Roel Spee, global leader at IBM-Plant Location International (PLI) that carries out the location analysis on behalf of IBM from its global headquarters in Brussels. "The preliminary figures for various Western European countries show a similar stable image and in some countries even an improvement. In uncertain times stability and the proximity of important markets especially are the factors that influence investment behavior. The Netherlands scores well on both factors and as a consequence is doing pretty well." 

As the global data will not be published till later this year, the Netherlands position on the global ranking for 2009 is not yet known. Last year the Netherlands climbed up to 29th position from 32nd in the global ranking based on creation of new jobs. 

The Global Location Trends report compiled by IBM annually will be published after the Summer.

Source: IBM Nederland press release, 27 May 2010