February 14, 2018

Finland tops rankings for foreign direct investment

The upcoming Kalasatama neighbourhood in Helsinki has plenty of room for investments, with over 25 ongoing infrastructure and building projects.
The upcoming Kalasatama neighbourhood in Helsinki has plenty of room for investments, with over 25 ongoing infrastructure and building projects.
Voima Graphics/ Helsingin Kaupunki

A number of Finnish regions and cities have been recognised by Financial Times’ fDi Magazine, in its Europe-wide survey of foreign direct investment (FDI).

First up, the European Cities and Regions of the Future 2018/19 report named Greater Helsinki as the top small region in Europe for its FDI strategy. The Greater Helsinki region incorporates Helsinki and its urban areas Espoo and Vantaa and some commuter towns.

Helsinki Business Hub, the Finnish Funding Agency for Technology and Innovation (now Business Finland) and the smart city initiative in the upcoming Kalasatama neighbourhood each received special mention for attracting foreign investments to the Finnish capital region.

“This ranking encourages us to work even harder in the future to make [the] Helsinki Region the best possible hub for businesses to develop, grow, change the world and, for companies, to innovate, develop and grow,” Helsinki Mayor Jan Vapaavuori stated in the magazine.

Meanwhile, the wider Uusimaa region in southern Finland, was deemed the most attractive mid-sized region for FDIs in Europe. Also housing Helsinki, Espoo and Vantaa, the region comprises a total of 26 municipalities. It was found to have the most economic potential compared to its peers, and was fifth best in terms of human capital and lifestyle. It was also named the third most attractive region in northern Europe and eighth overall.

Areas to invest

Other promising cities in Finland were Espoo and Oulu. Espoo came in fifth in human capital and lifestyle and placed eight for its economic potential compared to all small cities in Europe. Oulu in northern Finland also made the list, as a small city with the eighth-best FDI strategy.

Overall, Helsinki itself was listed as the 10th most promising European city for attracting FDI, while London again claimed the top spot even amidst Brexit uncertainty. Helsinki did exceptionally well in a range of subcategories as well, ranking fourth among all northern European cities, fifth for its economic potential and ninth in terms of connectivity.

The bi-monthly fDi Magazine specialises on crossborder investment. It compiled the report by collecting data for 489 locations (301 cities, 150 regions and 38 local enterprise partnerships).

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