87% of foreign firms in Andalusia, Spain anticipate a 2020 workforce expansion

Foreign companies in Andalusia, Spain are planning to expand, as is clear from the 'Barometer of the Business Climate in Andalusia from the perspective of foreign investors 2019', an annual report prepared by the new Agency for Innovation and Development of Andalusia (IDEA).

According to this report, 63% of international companies expect to increase their investments next year, 87% plan to increase or maintain their workforce, and 70% expect to increase their turnover. According to data from the Ministry of Industry, Commerce and Tourism, in the first half of 2019, foreign direct investment (FDI) in Andalusia reached almost 178 million euros, representing an increase of 5.43% over the same period from last year. In addition, if the investment stock of FDI is taken into account, an indicator that shows the most lasting confidence of investors in the local economy and their companies published by the same Ministry, the community is in third position in terms of property, plant and equipment and employment stock.

This barometer indicates the valuation of foreign companies installed in Andalusia on different areas related to business activity. In general, this assessment is positive (3.05 out of 5) and shows improvement compared to the year 2018 (3.02). The areas best valued by companies are infrastructure, followed by quality of life, human capital and market size, which also coincide with the areas they consider most important. The least rated fields are those of taxation and financing. In addition, the valuation of the business climate in Andalusia is slightly higher than that of Spain as a whole.

Attracting investments

In line with reactivation framework, a new IDEA Agency already has a certain calendar of foreign promotion actions in 2020 to present Andalusia as a destination for investments in priority sectors in the United Kingdom, Italy, and Germany, among others.

The agency, a single window for investor assistance, offers personalized attention to companies outside Andalusia in their tasks of prospecting for locations and implementation, making available general information about the territory and also of a sectoral, legal or financial nature. In addition, companies are still serviced once they are installed through the "aftercare" program, which focuses on monitoring the expansion projects and investments of foreign companies that are implemented in the region.

Together with these specific services for attracting investments, IDEA offers incentives for investment, financing, technological infrastructure and spaces of excellence for the location of new projects. It is a comprehensive service to the investor, whether Andalusian or not, but always with an operational center in Andalusia.