The latest figures reported by the Register of Foreign Investments (RIE) for 2022 show 17.226 billion gross investment in the region of Madrid. Despite the fact that the volume of inbound investment decreased by 6% compared to the average of the last decade and is 22% lower than the singularly high figures recorded in 2021, thanks to the impact of large acquisition operations (Vinci – Cobra, IFM – Naturgy) registered that year.
However, the investment received by the region of Madrid in 2022 represented more than half of the total inbound foreign investment in Spain.
By type of operation, these data correspond to 55% reinvestments or expansions of established foreign companies, 29% acquisitions and 16.5% new investments (greenfield or brownfield).
In greenfield investment, however, which generates greater growth and employment, significant growth was announced in 2022 in the region of Madrid in terms of the number of projects, associated investment, and jobs created. According to figures from fDi Markets, which include cross-border projects announced for new productive investment, the number of new investment projects in the city of Madrid rose to 162 in 2022, 17% more than the previous year. The investment associated with these projects amounts to $2.862 billion, 51% more than in 2021, and the estimated creation of 12,370 new jobs.
Origin of investment in the Region of Madrid
Looking at the final investor country (where the chain of ownership finishes), in 2022, the biggest investors were the United States (4.575 billion), with significant investments in machinery manufacturing and telecommunications, the United Kingdom (4.046 billion), highlighting investments in Sports activities, Energy Supply and Wholesale Trade, and France (2.257 billion). Thirteen other countries exceeded the level of 100 million in investment in Madrid last year.
In addition to the aforementioned sectors, investments in sectors related to real estate activities were particularly strong.
Job creation linked to foreign investment
Employment linked to foreign investment in the region of Madrid has grown by 21% over the last five years, and, according to the latest data, this figure stands at 512,915 workers, 30% of the total in Spain, 16.7% of the total number of people employed in the region.
This employment figure (2020) largely corresponds to the nearly 10,000 foreign-capital companies located in the city at the end of 2022.
Madrid Foreign investment
As stated by Miguel Ángel Redondo, councillor for the Economy in Madrid City Council “here at Madrid Investment Attraction (MIA) we have worked intensively over these last few months to offer the best advisory services to foreign companies that choose Madrid for their expansion. Our mission is to continue attracting investment and talent in sectors with high added value for the capital such as Fintech, eHealth, video games, and big data among others.”
The aim of Madrid Investment Attraction is to smooth the way for companies looking to set up in Madrid to ensure their growth and integration in the local ecosystem with a view to maximising their contribution to the local economy and society.