Foreign investment in France - Santandertrade.com (2024)

FDI in Figures

After dropping as a result of the COVID-19 pandemic, FDI flows to France rebounded in 2021 (+191.4%), but remained below pre-crisis level. From USD 4.87 billion recorded in 2020, they reached USD 14.19 billion in 2021, according to the World Investment Report 2022 published by UNCTAD.

The stock of FDI in 2021 was about USD 978 billion (UNCTAD). Despite the crisis, investment in certain strategic sectors, such as R&D, health care and renewable energy, recorded a rise. According to OECD data, FDI flows to France amounted to more than USD 11 billion in the first half of 2022. In terms of FDI inward stock, France is the 13th largest recipient of FDI in the world (UNCTAD). Luxembourg, Switzerland, the Netherlands and the United Kingdom are the main investors in France and represent more than 50% of the stock of FDI (Bank of France, 2021). According to data published by the Bank of France, FDI stocks are mainly intended for the manufacturing industry, financial and insurance activities, and real estate. The Paris region has the largest concentration of multinational headquarters in Europe (Global 500 ranking from Fortune magazine). One of President Emmanuel Macron's goals is to attract more multinationals currently based in London.

According to the latest The Economist’s Business Environment ranking, France ranks 6th out of 82 countries, a slight improvement compared to the previous years. Prospects for further reforms are weak, preventing some long-standing weaknesses in the business environment, including the tax system and the labour market, from being addressed (The Economist). The country's assets are its position as the third European power, its highly qualified workforce, its vast industrial base, its agricultural resources, its world cultural reputation and its geographic location in the center of Europe.

Foreign Direct Investment201920202021
FDI Inward Flow (million USD)28,3634,87014,193
FDI Stock (million USD)854,925963,797977,990
Number of Greenfield Investments*613573441
Value of Greenfield Investments (million USD)17,84714,96411,964

Source: UNCTAD, Latest available data.

Note: * Greenfield Investments are a form of Foreign Direct Investment where a parent company starts a new venture in a foreign country by constructing new operational facilities from the ground up.

FDI STOCKS BY COUNTRY AND BY INDUSTRY

Main Investing Countries2020, in %
United States18.3
Switzerland13.4
Germany12.3
United Kingdom11.5
Luxembourg9.4
Belgium6.7
Netherlands4.5
Italy4.4
Spain3.1
Main Invested Sectors2020, in %
Manufacturing29.1
Finance and insurance activities25.7
Real Estate21.3
Wholesale and retail trade7.4
Scientific, technical and specialised activities4.9
Information and communication3.5
Construction1.8

Source:Bank of France - Statistics extract- Latest available data.

Form of Company Preferred By Foreign Investors
SA: public limited company
Form of Establishment Preferred By Foreign Investors
The subsidiary
Main Foreign Companies
Consult some examples of successful investment projects in France (Invest in France).
Sources of Statistics
Ministry of the Economy, Finance and Recovery
Business France

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Latest Update: April 2023

Foreign investment in France - Santandertrade.com (2024)

FAQs

What is the best answer to the question what is foreign direct investment by a corporation? ›

Foreign direct investment (FDI) is an ownership stake in a foreign company or project made by an investor, company, or government from another country.

How much foreign direct investment in France? ›

The stock of FDI in 2021 was about USD 978 billion (UNCTAD). Despite the crisis, investment in certain strategic sectors, such as R&D, health care and renewable energy, recorded a rise. According to OECD data, FDI flows to France amounted to more than USD 11 billion in the first half of 2022.

Is the US the largest foreign investor in France? ›

The U.S. is the main foreign investor in France and the main destination for French direct investment, while France is the 6th investor in the U.S. Foreign direct investment flows further reinforce these strong ties: new French investments in the U.S. amounted to $23 billion in 2017, the world's 4th source, higher than ...

Who is the largest foreign investor in France? ›

Germany is the leading investor in France.

What's the difference between foreign investment and foreign direct investment? ›

Foreign portfolio investment is the purchase of securities of foreign countries, such as stocks and bonds, on an exchange. Foreign direct investment is building or purchasing businesses and their associated infrastructure in a foreign country.

What is the difference between foreign trade and foreign investment? ›

Foreign trade enables both inflow and outflow of raw materials/finished products between countries. The foreign investment enables the inflow of capital and technologies into a country from abroad.

How much do I need to invest in France to get residency? ›

A minimum of 300,000 EUR must be remitted into France by the applicant personally or his/her company. The most important condition is to show the French Authorities that this investment will create jobs for the French economy.

What is the FDI of France in 2023? ›

France Foreign Direct Investment (FDI) increased by 5.7 USD bn in Feb 2023, compared with an increase of 4.5 USD bn in the previous month.

Which country invests the most in France? ›

“With the highest number of foreign investment decisions in France, 2022 is a record year.
...
The Top 3 of countries investing in France is made of:
  • Germany with 256 projects (15%, i.e. more than 7,000 jobs);
  • the United Kingdom with 176 projects registered and 4,000 jobs;
  • the Netherlands with 142 projects.
Mar 20, 2023

Who is the richest investor in USA? ›

Not just the richest but also the most popular investor in the world Warren Buffett started his investment journey well before he reached the age of 10.

Which country invests most in USA? ›

The main investing countries in the U.S. are Japan, Germany, Canada, the United Kingdom, Ireland and France. Most of these investments are in manufacturing, financial and insurance activities, and trade and maintenance. In 2021, California received the most investment, followed by Massachusetts and New York (BEA).

What foreign country owns the most in the US? ›

In a study of USDA reports, Pew found the foreign country that owns the most U.S. land is not China or Russia, but rather, our neighbors north: Canada. Investors from the Great White North, according to the USDA, own about 12.8 million acres of U.S. land, most of it forest land.

How rich is the top 1 percent in France? ›

The top 1%?

To be in the 10% richest households, you must hold at least €716,300 in assets. To be in the 1%, you must have at least €2.24million. There are 282,000 such households in France.

Which country is best for foreign investors? ›

We've sourced the data for that from the World Bank.
  • New Zealand. ...
  • Norway. ...
  • Finland. ...
  • Switzerland. Investment Attractiveness Score: 79.5. ...
  • Denmark. Investment Attractiveness Score: 80.8. ...
  • Sweden. Investment Attractiveness Score: 81. ...
  • Netherlands. Investment Attractiveness Score: 81.7. ...
  • Hong Kong. Investment Attractiveness Score: 82.4.
Feb 21, 2023

What is the richest investment firm in the world? ›

BlackRock

BlackRock (BLK) is the largest investment firm in the world. It manages $8.6 trillion in assets as of Dec. 31, 2022.

What are the 4 types of foreign direct investment? ›

The different types of FDIs are horizontal FDI, vertical FDI, conglomerate FDI and platform FDI.

What are the three types of foreign direct investment? ›

What are the three types of foreign direct investment?
  • Vertical FDI.
  • Conglomerate FDI.
  • Platform FDI.

What is an example of foreign investment? ›

Foreign investment occurs when foreign companies invest in domestic companies and seek active participation in their day-to-day operations and key strategic expansion. For example, if an American company invests in an Indian company, it will be a foreign investment.

What are the two types of foreign trade? ›

Q6. State two types of foreign trade. Ans. Import Trade and Export Trade.

What are the 2 types of foreign investment and what is the difference between them? ›

Horizontal FDI occurs when a company is trying to open up a new market—a retailer, for example, that builds a store in a new country to sell to the local market. Vertical FDI is when a company invests internationally to provide input into its core operations—usually in its home country.

Is foreign trade good or bad? ›

International trade allows countries to expand their markets and access goods and services that otherwise may not have been available domestically. As a result of international trade, the market is more competitive. This ultimately results in more competitive pricing and brings a cheaper product home to the consumer.

Can a US citizen get residency in France? ›

An American intending to stay in France for more than 3 months, whether to study, to work or to reside without being gainfully employed, must have the appropriate long-stay visa (“visa de long séjour”) in his passport on arrival in France in order to be able to apply for a “carte de séjour”.

Can I buy property in France as a US citizen? ›

There are no restrictions for foreign investors buying a house in France, even non-residents. All investors need is a French bank account and a valid ID.

Does buying a house in France gives you residency? ›

Purchasing a property in France does not automatically grant non-EU citizens permanent residency. They must apply for a long-term visa or residence permit, fulfilling requirements such as proving sufficient financial resources and having health insurance coverage.

What will interest rates be in France in 2023? ›

In the long-term, the France Interest Rate is projected to trend around 3.50 percent in 2023 and 2.75 percent in 2024, according to our econometric models. France is a member of the European Union which has adopted the euro.

What will France growth rate be in 2023? ›

The economy slowed down in the second half of 2022, amid increasing supply bottlenecks and high energy prices, and is expected to remain subdued over the first half of 2023, with growth in the first quarter estimated at +0.2%. In 2023, investment is set to slow down on the back of tighter financial conditions.

What is the current status of FDI? ›

Total FDI inflows in the country in the FY 2022 (April - December) is $ 55.27 Bn and total FDI equity inflows stands at $ 36.74 Bn.

What is France biggest source of income? ›

Tourism, manufacturing, and pharmaceuticals lead France's diversified economy. The government has partially or fully privatized many large companies but maintains a strong presence in such sectors as power, public transport, and defense.

Which is the small rich country in France? ›

Monaco is famous as a tax haven: the principality has no personal income tax (except for French citizens) and low business taxes.

What is the main source of money in France? ›

Tourism is France's main source of income because it the most visited country in the world..

Who is the smartest investor in the world? ›

Warren Buffett is often considered the world's best investor of modern times. Buffett started investing at a young age, and was influenced by Benjamin Graham's value investing philosophy.

Who is the youngest richest investor in the world? ›

But old age is not a requirement for amassing great wealth. In fact, there are 15 people around the globe who boast a three-comma fortune despite being 30 years old or younger. The youngest of this mostly lucky bunch are Clemente Del Vecchio and Kim Jung-youn, neither of whom have hit their 20s yet.

What is the best option to invest money? ›

Best Investment Options in India
  1. Direct Equity – Stocks. Direct equity stocks are one of the best investment options for aggressive investors. ...
  2. Equity Mutual Funds. ...
  3. Equity Debt Funds. ...
  4. National Pension Scheme (NPS) ...
  5. Public Provident Fund (PPF) ...
  6. Bank Fixed Deposit. ...
  7. Senior Citizen Savings Scheme (SCSS) ...
  8. Unit Linked Insurance Plans.

What country owns the most US businesses? ›

In terms of country of ownership, Japan holds the largest amount of U.S. portfolio assets, followed by China.

What is the cheapest country to invest in? ›

Vanuatu has the simplest and cheapest citizenship by investment conditions in the world. In our ranking, the country's program ranks third after Malta and Cyprus.

How much of America is owned by foreign investors? ›

Of the 1.3 billion acres of private agricultural land in the United States, foreign entities fully or partially owned roughly 40 million acres valued at $74 billion in 2021.

What country makes more money than the US? ›

Our ranking shows the 50 wealthiest countries, measured by gross domestic product per capita and adjusted by the purchasing in the respective country. The USA is the only country with a large surface area and population among the highest-ranking nations, ranking eleventh. The richest country in the world is Luxembourg.

Is there a country richer than the US? ›

According to the IMF, the wealthiest nation in the world 2022 for GDP per capita was Luxembourg, with a sum of $127,673. For the sake of comparison, while the US has an overall GDP of $26.19 trillion, its GDP per capita is much lower at $75,180 than tax havens like Luxembourg, with a GDP per capita of $127,673.

What country owns the most land? ›

The largest country in the world is Russia with a total area of 17,098,242 Km² (6,601,665 mi²) and a land area of 16,376,870 Km² (6,323,142 mi²), equivalent to 11% of the total world's landmass of 148,940,000 Km² (57,510,000 square miles). See also: Most Populous Countries.

What salary is considered rich in France? ›

To be considered rich, a person must have a revenue of €3,673 per month ($3,903)—this amount is double that of the average person and comprises 4.5 million people in France. A couple with two children under the age of 14 would be considered rich if they have a combined monthly revenues of €7,713 ($8,267).

What salary makes you rich in France? ›

According to the Observatoire des Inégalités, an income of 3,673 euros per month qualifies a single adult as wealthy. By this standard, the privileged bracket represents 7.1% of the French population.

Who is the richest French family? ›

Two French business titans, Bernard Arnault of the LVMH empire and Françoise Bettencourt-Meyers of L'Oréal, are named the world's wealthiest man and woman.

Where do Americans invest? ›

Nearly Half of Americans Are Invested in Stocks

Although there is risk involved, stocks may be a particularly good investment in 2022. "Stocks historically allow you to stay ahead of inflation and receive income from dividends paid to shareholders," Revelli said. There are also ways to mitigate your losses.

What is the easiest country to open a business as a foreigner? ›

New Zealand ranked first in terms of ease of doing business in 2020. The top 50 include the UAE, Turkey, Austria, Portugal and Spain, where wealthy foreigners can obtain residence permits or citizenship. Denmark has the most competitive economy, according to IMD 2022. The USA ranks 10th, while the UAE takes 12th place.

Who are the 5 largest investors of foreign direct investment? ›

According to the latest results of our Coordinated Direct Investment Survey , and as shown in our Chart of the Week, the world's top ten recipients of foreign direct investment by end-2020 were the United States, the Netherlands, Luxembourg, China, the United Kingdom, Hong Kong SAR, Singapore, Switzerland, Ireland, and ...

Who owns the most assets in the world? ›

The Government Pension Investment Fund of Japan remains the largest asset owner in the world (US$1.7 trillion) followed by the two largest sovereign wealth funds: Norges Bank Investment Management (US$1.4 trillion) and China Investment Corporation (US$1.2 trillion).

Who is the biggest investor of all time? ›

1. Warren Buffett. Warren Buffett is considered by many to be the most successful investor ever; he has a net worth of over $80 billion and for decades has been among the wealthiest people in the world. He began investing at an early age and is now known as “The Oracle of Omaha” for his unparalleled financial acumen.

What are the big 4 investment banks? ›

In the U.S., the top investment banking companies include the Big Four Banks — JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo.

What is the best example of foreign direct investment? ›

An example would be McDonald's investing in an Asian country to increase the number of stores in the region. Here, a business enters a foreign economy to strengthen a part of its supply chain without changing its business in any way.

What is foreign direct investment? ›

Foreign direct investment (FDI) is a category of cross-border investment in which an investor resident in one economy establishes a lasting interest in and a significant degree of influence over an enterprise resident in another economy.

What is the best definition for foreign direct investment quizlet? ›

What is the best definition for foreign direct investment? A foreign direct investment is the purchase of more than ten percent of a firm or the creation of a new enterprise in another country.

What is a foreign direct investment quizlet? ›

Foreign direct investment is the purchase of physical assets or a significant amount of the ownership of a company in another country to gain a measure of management control.

What is the most common form of direct foreign investment? ›

Ownership-based investments
  • Brownfield. Similar to Greenfield, this is an aggressive market entry strategy. ...
  • Acquisition. The investor purchases an existing operation in the target market.
  • Joint venture. ...
  • Merger. ...
  • Supplier alliances. ...
  • Research consortium. ...
  • Co-marketing alliance. ...
  • Co-production alliance.
Feb 8, 2022

What is the most popular destination for foreign direct investment? ›

The United States is the top destination of inward foreign direct investment.

What is an example of a foreign investment? ›

Foreign direct investments (FDIs) are long-term physical investments, such as plants, toll roads, and bridges within foreign countries. Examples of FDIs include financial institutions trading equity stakes of foreign companies on the stock exchange.

How do you calculate foreign direct investment? ›

Foreign direct investment is the sum of equity capital, long term capital, and short term capital as reflected in the balance of payments.

What are the two main forms of foreign direct investment? ›

FDI can take two different forms: Greenfield or mergers and acquisitions (M&As).
  • greenfield investment involves the creation of a new company or establishment of facilities abroad. ...
  • mergers and acquisitions amounts to transferring the ownership of existing assets to an owner abroad.

What is foreign investment also called? ›

This type of investment is also sometimes referred to as a foreign portfolio investment (FPI). Indirect investments include not only equity instruments such as stocks, but also debt instruments such as bonds.

Which type of foreign investment is considered as? ›

Correct Option: B. Portfolio Investments are considered unsafe. These are investments in the form of a group (portfolio) of assets, including transactions in equity securities, such as common stock, and debt securities, such as banknotes, bonds, and debentures.

Which of the following are main drivers of foreign direct investment? ›

Accordingly, FDI is driven by four main factors: (i) markets; (ii) assets; (iii) natural resources; and (iv) efficiency seeking.

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