Foreign Investment in Helsinki Grew Significantly in 2011

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Jun 20, 2012, 09:02 ET

HELSINKI, June 20, 2012 /PRNewswire/ --

- Neighbouring capital regions were clearly overtaken for the first time

Greater Helsinki attracted more foreign investment in 2011 than neighbouring capital cities. For the first time Stockholm, Copenhagen, Oslo and Tallinn all came behind Helsinki in terms of foreign direct investment and growth capital investment. Helsinki saw a 200% increase in foreign direct investment (from 18 cases in 2010 to 54 cases in 2011) and a 143% increase in growth capital investments (from 7 in 2010 to 17 in 2011). The number of foreign mergers and acquisitions also increased, from 28 in 2010 to 34 in 2011. In terms of foreign mergers and acquisitions, Greater Helsinki is the only capital city that has not seen a drop in activity during 2008-2011.

"It is fantastic to see Helsinki take the number one spot. This positive news is particularly welcome following the recent news about Nokia," says Micah Gland, CEO of Greater Helsinki Promotion, whose mission is to increase foreign investment to Greater Helsinki. "Helsinki is a great location, with highly educated workforce and an easy business environment. It is for these reasons that ever increasing numbers of foreign investors are interested in establishing their businesses here."

Even though Finland's share of Europe's foreign investments is only around 1%, the attractiveness of the Helsinki region drove up Finland's figures in all investment types: 170% in foreign direct investment, 157% in foreign growth capital investments and 32% in foreign mergers and acquisitions. These growth percentages are particularly impressive in light of the average Europe-wide figures, which grew at only 3-4% depending on investment type.

"Greater Helsinki is the growth engine driving Finnish foreign investment. The fact that Helsinki is seen as an ever more attractive investment destination is an advantage for the whole of Finland. As has been stated on many occasions during 2012, most recently in the report by Jorma Eloranta, there is a critical need for new foreign investment in Finland," Micah Gland explains.

The figures for foreign investment into Greater Helsinki are from a report compiled by Greater Helsinki Promotion (GHP), in which Helsinki's success in attracting foreign investment is compared with that of the neighbouring capital city regions. The Helsinki Business Hub International Benchmark Report 2012 uses source data from the Ernst & Young European Investment Monitor and the Zephyr database of Bureau van Dijk, which are independent, internationally respected monitors of foreign investment.

Greater Helsinki Promotion (GHP) is the invest-in expert organisation for the Helsinki region, which is owned by the cities of Helsinki, Espoo, Vantaa, Kauniainen and the Uusimaa Region. GHP works to promote the Helsinki region as a world-class centre of business, innovation and logistics by attracting high-impact foreign investments to the area. These kinds of significant investments have been brought to Helsinki in increasing numbers year on year: in 2011 there were 48 key investments, which was an increase of 18 from the previous year. The investments in 2011 are estimated to create or sustain over 2000 jobs and bring over 1.1 billion euros to the local economy. http://www.helsinkibusinesshub.fi