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Scotsman
09-06-2025
- Business
- Scotsman
Scotland top UK destination outside London for financial services FDI
PA Scotland top UK destination outside London for financial services FDI Sign up to our Scotsman Money newsletter, covering all you need to know to help manage your money. Sign up Thank you for signing up! Did you know with a Digital Subscription to The Scotsman, you can get unlimited access to the website including our premium content, as well as benefiting from fewer ads, loyalty rewards and much more. Learn More Sorry, there seem to be some issues. Please try again later. Submitting... Scotland attracted 11 financial services foreign direct investment (FDI) projects in 2024, up from nine is 2023 and the highest in a decade. The figure was released ahead of the EY Scotland Attractiveness Survey 2025 later this month. While London continues to lead with 39 projects, Scotland is the top location outside London with Edinburgh (six projects) joint top city outside of London alongside Manchester. These results come after both Edinburgh and Glasgow boosted their positions as leading global financial centres, according to the latest Global Financial Centres Index (GFCI). Edinburgh placed 29th in the GFCI, while Glasgow, which attracted four FDI projects, placed 32nd - up five places on last year and up from 51st the year before. Advertisement Hide Ad Advertisement Hide Ad The US continues to be Scotland's top inbound country of origin for financial services FDI, with five projects in 2024 and a total of 38 projects over the last decade. The UK attracted a total of 73 financial services FDI, down from 108 the year before. However, the UK continues to be Europe's most attractive location for financial services FDI with total project numbers across Europe falling 11 per cent year-on-year (from 329 projects in 2023 to 293 projects in 2024). READ MORE: How Edinburgh can bolster its position as a global asset management centre EY Scotland Managing Partner for Financial Services Sue Dawe said: 'We continue to see Scotland perform well in attracting financial services FDI projects. In 2024, we saw almost as many projects expanding existing operations as we did brand new projects – which is a great indication that these companies view Scotland as a viable proposition to continue investing in. 'While the UK continues to be Europe's top financial service FDI location, the fall in overall investment that was recorded at both those levels tell us that we cannot take the foot off the peddle. If Scotland is to remain an attractive place for companies within an increasingly competitive market then we need to dial-up what we do well – working together across sector, government and education – and not shy away from challenges on the horizon. Advertisement Hide Ad Advertisement Hide Ad 'Financial services isn't simply one of Scotland's growth sectors – it's the growth sector that enables other growth sectors; so, if we get this right and continue to be the most attractive place to establish financial services operations outside London, the Scottish economy as a whole will benefit. We've already demonstrated what can be achieved when we work together, this should be no different.' CEO of Scottish Financial Enterprise Sandy Begbie said: 'EY's latest Attractiveness Survey demonstrates the continued strength and attractiveness of Scotland's world class financial services industry, based on the depth, breadth and maturity of our ecosystem, the quality of our universities and skills pipeline, and the leadership we are showing in priority areas like data, AI and green finance. As we set out in our growth strategy, our sector's ambition is to grow its economic contribution by £4-7bn over the coming five years and attracting inward investment will play an important role in this.
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Scotsman
06-06-2025
- Business
- Scotsman
How Edinburgh can bolster its position as a global asset management centre
PA Sign up to our Scotsman Money newsletter, covering all you need to know to help manage your money. Sign up Thank you for signing up! Did you know with a Digital Subscription to The Scotsman, you can get unlimited access to the website including our premium content, as well as benefiting from fewer ads, loyalty rewards and much more. Learn More Sorry, there seem to be some issues. Please try again later. Submitting... The return to private ownership of Royal Bank of Scotland owner NatWest last month was an important bookend in the soul-searching about Edinburgh as a financial centre. While it's true that Bank of Scotland owner Lloyds employs about as many people in Scotland as it does in London, banking is decidedly not the future. Advertisement Hide Ad Advertisement Hide Ad Yet the need for the UK's largest financial centre after London to come up with a compelling global story has not gone away as other regional centres attract a critical mass of financial players. In the latest Global Financial Centres Index, Edinburgh retained a respectable 29th position and Glasgow jumped five places to 32. Yet competition from nimbler hubs like Seoul (10th ), Luxembourg (16 th ) and Amsterdam (18th ) is intensifying. Now, Scottish Financial Enterprise (SFE), thinks it has an answer. The lobby group last month published a strategy for asset management, one of three 'global opportunities' for Scotland (the others being fintech, and green and sustainable finance). Advertisement Hide Ad Advertisement Hide Ad Asset management is obviously an Edinburgh strength. The city has long been the largest such centre outside London, led by Baillie Gifford, Aberdeen and Dutch-owned Aegon Asset Management. Yet its position has been slipping due to the rise of 'passive' investing, which relies on index tracking strategies rather than the expertise of 'active' stock-picking investors, an Edinburgh strength. Acquisitions have also played a part: Franklin Templeton bought Edinburgh Partners in 2018, Legg Mason acquired Martin Currie in 2014 and Walter Scott became part of Mellon Financial (now BNY) in 2006. The harsh reality is that AUM in Scotland has been in steady decline since at least 2015, slipping to £493bn in 2023 from £548bn nine years ago, according to the latest available data from Investment Association (IA). Scotland's share of total UK AUM halved in the same period to 5 per cent, having reached a post-financial crisis peak of 13 per cent in 2010. The IA believes this is not all down to shrinking AUM in Scotland and that portfolio management has become more concentrated in London, leaving 'business operations' – that is, the middle-office plumbing behind the people who make investment decisions - to Scotland. Advertisement Hide Ad Advertisement Hide Ad This explains why Edinburgh and Glasgow have become big centres for what's also referred to as 'asset servicing', with Wall Street driving the trend. BlackRock, the world's largest asset manager, last month moved its roughly 1,000 employees into a new office in Edinburgh that will in time be the firm's fourth largest globally. Its presence in the city dates back a quarter of a century and functions as a hub for an investment platform used by BlackRock's portfolio managers and those of its clients across Europe. Similarly, JP Morgan and Morgan Stanley have technology hubs in Glasgow employing a combined 5,000 people. Many are data analytics graduates from Scottish universities in jobs helping the banks to run front office functions around the world. JP Morgan's office hosts an 'asset management technology' team that's one of 10 the bank maintains globally. The SFE argues that Scotland can attract more asset servicing as firms look to escape cost pressures New York and London by relocating to cheaper regional centres, especially those with strong technology capabilities coming out of their universities, like Boston. Sandy Begbie is the chief executive of Scottish Financial Enterprise (SFE). Picture by Graham Flack | Contributed/Graham Flack The SFE's doggedly optimistic chief executive, Sandy Begbie, thinks there is also a chance of attracting more front office roles to Scotland, including from firms already in London. A 'wage benefit' of around 30 per cent compared to London, coupled with Scotland's much-touted lifestyle advantage, means there's 'a decent arbitrage to be had' in shifting personnel to Scotland, he says. Of course, there is still the awkward income tax differential that adds an offsetting 'Scotland weighting' to senior roles. Nonetheless, Edinburgh does have a good case to make in the intersection between technology and finance. A lot is happening between the University of Edinburgh and the private sector, producing examples of the 'digital ecosystems' that SFE thinks are important to growing the asset management pie. This mostly revolves around using AI, distributed ledger technology and tokenisation. Advertisement Hide Ad Advertisement Hide Ad Last year, Aberdeen and the university launched a Centre for Investing Innovations that's working on an AI-powered 'research companion' that would use large language models to synthesise the huge amount of data needed to make investment decisions. A firm called Level E, founded by former Mexican banker Sonia Schulenberg, has developed 'AI-driven autonomous investing'. Rushad Abadan, general counsel at Aberdeen, argues that productivity levels will continue to increase with better technology and that this will 'play into' where AUM gets managed. 'If you think about it like that then I think Scotland has a lot to offer in terms of where the research is being done,' he says. The SFE calls for 'a more clearly articulated government strategy' for growth and investment in the asset management sector and its importance to Scotland – as Singapore, Ireland and Luxembourg do. This needs to be joined up with 'other UK industrial and growth strategies'. Advertisement Hide Ad Advertisement Hide Ad Kate Forbes, deputy first minister, has developed a pitch-perfect narrative on inward investment that recognises the importance of making a globally competitive offer in core areas like offshore wind. At Panmure House in Edinburgh this week, she talked of her 'mission to make Scotland the most attractive destination for investment in the UK.'
Hi Dubai
20-05-2025
- Business
- Hi Dubai
DIFC Strengthens Global Private Equity Presence with IPEM Partnership
Dubai International Financial Centre (DIFC) has partnered with the International Private Equity Market (IPEM) to host a new flagship event in the emirate, marking a major step in positioning Dubai as a global hub for private capital investment. The agreement, signed during the Dubai FinTech Summit, will see Dubai added to IPEM's roster of global events, complementing its established gatherings in France. The new platform, IPEM Future, is set to debut in December and will bring together top-tier investors, fund managers, and innovators focused on transformative sectors such as AI, climate tech, and space. This move reinforces DIFC's standing as a leading global financial centre. Ranked first in the region and among the top eight globally by the Global Financial Centres Index, DIFC offers a deep and diversified ecosystem that continues to attract long-term capital flows. 'The current global economic environment has amplified investor appetite for private capital,' said Arif Amiri, CEO of DIFC Authority. 'Our partnership with IPEM enhances Dubai's appeal as a destination for resilient and transformative capital deployment.' IPEM CEO Antoine Colson described Dubai as 'a natural home' for the new initiative, citing its role as a magnet for innovation-led investment. The December event will serve as a key gathering for institutional players shaping the future of private markets. Ahead of the launch, IPEM brought a delegation of global private capital leaders to the Dubai FinTech Summit for a curated preview event. Discussions focused on long-term value creation, the evolving investor landscape, and the strategic role of the Middle East in global finance. The new partnership is set to further elevate Dubai's position at the intersection of innovation, investment, and global financial leadership. News Source: Emirates News Agency
Bloomberg
02-05-2025
- Business
- Bloomberg
In the City: London May Be Coming for Wall Street
London is closing the gap with New York for the title of world's top financial center, according to the latest Global Financial Centres Index. Is it a signal that the the UK's efforts to rejuvenate its banking and investment sectors post-Brexit are starting to pay off? On this week's In The City, host David Merritt sits down with Chris Hayward, Policy Chairman of the City of London Corp., who makes the argument it is.
Korea Herald
27-03-2025
- Business
- Korea Herald
Seoul's global financial ascent fueled by fintech, says ex-lord mayor of London
The former Lord Mayor of London, Michael Mainelli, underscored the importance of connectivity in positioning Seoul as a global financial powerhouse, highlighting fintech innovations and a robust regulatory framework as key strengths. Mainelli, now chairman of think tank and consultancy firm Z/Yen Group, believes that enhancing interconnectivity within the global community is essential for Korea and its cities to advance further and remain competitive in the rapidly evolving global economy. 'Connectivity is everything. You have to be connected to be a commercial center. You can't be an international commercial center without international people,' he said while delivering a speech at a forum hosted by the Institute for Global Economics, focusing on Korea's global competitiveness. The event took place at a hotel in Seoul on Thursday. Mainelli also recognized the importance and influence of Korean popular culture. 'Do not underestimate the impact that K-culture has had around the world, including K-pop and K-drama. There are people who would have never heard of Korea and now have it beamed by Netflix into their sitting rooms, watching and absorbing Korean culture.' 'Reputation is vital. You can lose a good one just overnight,' he added. Sharing the findings of the Global Financial Centres Index released by Z/Yen Group last week, the chairman noted that Seoul has made significant strides in its quest to outperform major cities. 'Seoul has been doing extremely well, but it wasn't even on this chart 20 years ago. So it is tremendous progress,' said Mainelli, an expert in financial markets, technology and the development of financial centers. Seoul ranked 10th among 133 cities in the latest index, which evaluates and ranks the competitiveness of financial centers worldwide to reflect shifting dynamics and emerging trends in global finance. Seoul previously ranked 36th in 2019, steadily climbing to 16th in March 2021, and to 12th in March 2022. Since 2023, it has consistently ranked in the top 10. Notably, Seoul maintained its 10th-place ranking in the 'fintech' category for the second consecutive year, reaffirming its position as a digital financial hub. 'Fintech again, Seoul does very well, and I believe this could be core to your competitive advantage due to the skills that you have here throughout Korea, especially in Seoul and Busan,' Mainelli said. The Z/Yen Group head said the strength of Seoul's regulatory system is particularly satisfying, which provides a sense of optimism as it is recognized globally as a strong framework. Seoul Mayor Oh Se-hoon, who also attended the event, pledged to develop Seoul to emerge as Asia's preeminent financial hub. 'We will create a vision for Seoul and drive change by focusing on transforming the fundamental financial structure and ecosystem,' he said. For the Korean economy to make significant advancements, the revitalization of finance will play a major role in fostering a business-friendly environment and boosting investments in research and development, he added. Mainelli further emphasized that fair treatment is a fundamental strategy for creating a successful financial hub, and "goes well beyond telling your regulators to be fair." "Take for example, something as simple as competition regulation. If I enter a market where there's one giant pension fund as a foreign entity and I begin to have a problem, we know who's going to win and it's not me. So I stay out of those waters.'
