Trade Horizons’ Market Entry Blog

A new OECD report says global FDI at $1.82trn in 2021 was 88% up on 2021 and 37% up on pre-pandemic 2020 levels. The report states the main factor as foreign owned companies not redistributing profits back to parent companies rather reinvesting in the local subsidiary. In addition, cross-border M&A was up 50% in developed countries and 25% in developing countries. The top FDI destinations were America followed by China, Canada and Brazil. America was also the greatest source of outflows. FDI inflows grew by 96% in OECD G20 economies.

More than 18,500 tech startups incorporated London in 2021, a 94% increase on 2020. In addition, the number of new tech companies in UK increased 62% in the same year at more than 38,000. Nick Jordan, Trade Horizons CEO, said “London and the UK are increasingly attractive to overseas tech companies because of our innovation culture, ease of doing business and generous support schemes to encourage accelerated, sustainable growth for new companies. The Government’s various support schemes for new technologies in crypto and sustainability areas is making the UK a very hot place right now for tech startups and scaleups.”

he big news this week of course is that Prime Minister Boris Johnson has announced £1bn new commercial deals on landmark India visit. Along with commercial agreements, the partnership ‘hails in a new era for trade investment and technology.’ The PM landed in Gujarat this week with a remit to boost collaboration with India, one of the world’s largest and fastest growing economies. More than 11,000 new jobs are expected to be created in the £1bn export and investment deals including a new electric bus R&D scheme in Chennai (which we wrote about recently as a thriving R&D hub), UK car plants, tech & consultancy company inward UK investment, pharma machinery deals and space collaboration.

The UK signs historic trade deals and Europe and America pledge commitment to Indo-Pacific Region.