Finance

Luxembourg ranks a global 12th in the Global Financial Centres Index

In all, 87 financial centres were evaluated for the 20th edition.

Global Financial Centres Index 20In the 20th edition of the half-yearly Global Financial Centres Index, the consultancy agency Z/Yen evaluated 87 financial centres from all over the world according to their competitiveness. In this ranking, Luxembourg comes in 12th position globally and in 3rd position of the European financial centres. In all, the index confirms the dynamism and the international outlook of the financial centre.

A 'dynamic', 'global' and 'relatively specalised' centre

The study evaluates the competitiveness according to two types of sources (on a scale of 1-1000). On the one hand, the study uses 101 quantitative determinants, and on the other also an appreciation barometer from online surveys made by professionals from the sector. As defined in this study, competitiveness consists of five categories of indicators: business environment (taxes, regulation, etc.), development of the financial sector (volumes, fund availability, etc.), infrastructure (cost and availability of offices, etc.), human resources (training, flexibility, etc.) and global determinants of competitiveness (perception of cities as having a high quality of life, etc.).

An analysis of the volatility of the different financial centres' performances, considers Luxembourg to be a 'dynamic', 'global' and 'relatively specialised' financial centre.

Luxembourg in the leading group everywhere

London (795 points), New York (794) and Singapore (752) are the top three centres in this new ranking. Luxembourg ranks 12th worldwide (711) and thus wins two positions compared to the previous edition. At a European level, Luxembourg ranks 3rd and is surpassed by London and Zurich. At the level of the European Union, Luxembourg is therefore in 2nd position and even ranks first in the euro zone. Other major financial centres close to Luxembourg are evaluated as follows: Frankfurt (19th/695), Geneva (23rd/689), Paris (29th/672), Amsterdam (33rd/659) and Brussels (62nd/614)

Finally, the qualitative online survey that was done with financial sector professionals around the world shows that from all of the financial centres to which respondents attribute a growing role in the years to come, Luxembourg ranks 8th globally, and even 1st in Europe.

An excellent and welcoming financial centre

The success of Luxembourg's financial centre is beyond proof: 143 financial institutes are active in Luxembourg's financial sector (August 2016), among which only 5 are from Luxembourg, which serves to emphasise the international outlook of the financial centre. With its conducive regulatory framework and exceptional political stability, surrounded by a prosperous economy, the financial centre has continued to grow, becoming one of the largest in Europe and perhaps the world. For investment funds, Luxembourg even ranks 2nd globally for the sector's size and 1st for its international outlook.

(Article written by the editorial team of the portal www.luxembourg.lu/ Source: Observatory for Competitiveness)

  • Updated 30-09-2016