International investments in France recorded 33,682 jobs created or maintained in 2015

135 companies from Gulf countries operating in France

United Arab Emirates, March 24, 2016. The “2015 Annual Report: Foreign investment in France. The international development of the French economy” just released results of foreign investment decisions in France and their contribution to the French economy.

In 2015, 962 investment decisions created or maintained 33,682 jobs with manufacturing operations and new headquarters to the fore, the best figure in the last five years. With an average of 19 decisions made every week, 2015 saw a 27% increase in jobs generated by foreign investment, up from 26,535 in 2014.

Six new investment projects from GCC were recorded in 2015, creating or maintaining 632 jobs. Fifty percent of GCC investments in 2015 came from the United Arab Emirates, while Kuwait, Oman and Qatar each accounted for 17%. Half of these projects involved decision-making centers (first-time investments), while the other half were in logistics, business services, and personal services.

Salim SAIFI, Director of Investment at Business France regional office in Dubai said: “In 2015, investments by GCC companies were made in a variety of sectors, including hotels, telecoms, and logistic. Today, there are over 135 companies from GCC operating in France, where they employ more than 6,000 people”.

“We do not include the significant financial flows invested by Gulf Sovereign Wealth Funds which have been investing traditionally in France” SAIFI added.

Foreign companies invested primarily in production/manufacturing operations, which accounted for 30% of all foreign investments in France, generating 16,168 jobs (up from 11,601 in 2014), or 48% of all jobs created or maintained.

Another key development was the increase in headquarters, as the number of new global or European headquarters rose sharply from 16 in 2014 to 27 in 2015. German firm Siemens decided in 2015 to make Toulouse (Languedoc-Roussillon-Midi-Pyrénées region) the global headquarters for all operations relating to its ‘Val’ range of turnkey automated metro solutions, while Canadian horticulture and agriculture specialist Premier Tech decided to expand its European headquarters in the Pays de la Loire region, creating a new automated production line and global R&D center.

The number of R&D, engineering and design projects (87) remained high, amounting to 9% of all foreign investment decisions in 2015. Foreign-owned subsidiaries in France were responsible for 28% of all business enterprise R&D expenditure nationwide, spending €8.6 billion.

Foreign investments were received from 53 different countries in 2015, up from 47 in 2014: those from European countries remained predominant (60% of all foreign investment decisions), followed by North America (22%) and Asia (13%), in very similar proportions to 2014. The leading source countries were the United States (18%), responsible for one-quarter of all inward R&D investments, Germany (15%), accounting for 26% of all foreign production/manufacturing projects, Italy (9%), providing 31% of inward investment in logistics, the United Kingdom (8%), responsible for 22% of all foreign investment in retail outlets, and Japan (6%), the fourth leading source of foreign production/manufacturing investment. BRIC nations (Brazil, Russia, India, China) represented 7% of inward investments in France (68 investment decisions), including 44 projects from China and Hong Kong. Project numbers were up for many source countries, including Canada (38 projects, +31%), the Netherlands (37 projects, +12%), and Ireland (15 projects, +114%).

Foreign companies currently generate 32% of French exports. Figures from the French National Institute for Statistics and Economic Studies (INSEE) show that more than one-quarter of foreign-owned company turnover in France was generated through exports in 2015, compared with 31% in the United States, 21% in Germany, 25% in the Netherlands, 15% in the United Kingdom, and 30% in Japan.

Muriel Pénicaud, France’s Ambassador for International Investment and CEO of Business France said: “Foreign investment decisions generated 33,682 jobs in France in 2015, up 27% from 2014, amid fierce international competition to attract investment projects and the employment opportunities they entail. Working alongside its regional partners, Business France has redoubled its efforts to convince foreign investors that France should be a key business location for their projects in Europe, attracting 54% or 522 of the 962 investments recorded this year nationwide.”