“The incentives for attracting foreign investment in the capital of the Costa del Sol are increasing and it is a trend that is on the rise”
Malaga: the ideal destination for foreign companies looking to increase profitability
Why is Malaga emerging as the most reliable alternative for foreign capital?
Malaga, in recent years, has become more than just a tourist city. Throughout this short article, the reader will be shown Malaga’s position as the ideal place for attracting investment, the reasons that foreign investors have for investing their capital in the city, as well as the benefits derived from this fact, in order to give citizens a vision of this extraordinary city, and that, in the words of Francisco de la Torre, the mayor of Malaga, “the balance is very positive”.
- Malaga’s leadership as a focus for foreign investment in Andalusia
On a national level, the capital of the Costa del Sol is the preferred area for companies to invest their capital, as can be seen from the 348 million euros of foreign investment in 2021 (Fundación Ciedes, 2021). To put this in perspective, we must take into account the situation experienced in 2020, as the impact caused by the health crisis resulting from COVID-19 halted several investment opportunities that were on the rise, but today, the recovery is spectacular.
In the national panorama, Andalusia is in fourth place with 965 million euros, behind the Community of Madrid, Catalonia and the Basque Country. In this high disbursement, the countries that invested the most in the Andalusian region were France, Chile and the United States, with Malaga standing out as the city that leads the rest. Likewise, according to the Foreign Investment Register, Malaga’s great importance in the total investment position in Andalusia can be seen.
Having highlighted the prestige that Malaga has been acquiring among large foreign investors, we will now mention some of the multinationals that have announced their presence in the city by opening technology centres, including EY, Dekra, Vodafone and Google, which has led to the joint work of the city’s different institutions: the Junta, the Technology Park and the UMA.
- Reasons for investment attractiveness and future improvements
There are several reasons that make it attractive for foreign companies to invest their capital in the city of Malaga, including its geographical location, good communications, infrastructure, sustainability, business opportunities and, above all, its climate and quality of life. In addition, innovation (investment in R&D) and costs are two key factors. We must not forget to mention teleworking, as Malaga is very attractive for foreign companies due to the integration, the quality of the connections and the Internet.
In conclusion, some of the proposed improvements are the reduction of bureaucracy, a better promotion of the city, an improvement in marketing and the strengthening of technological aspects with the aim of making Malaga the most prestigious place in the whole of Spain.