FDI in the Netherlands
FDI in Figures
The Netherlands is one of the European countries that attracts most of direct foreign investment (FDI). A strong international orientation and a liberal policy towards foreign investment are the characteristics of the Netherlands' policies in this field. Many Dutch companies are multinational by nature and a large number of these are listed on the foreign stock markets. There are no regulatory restrictions on foreign direct investment.
The Netherlands had shown an increase of its FDI stock until 2007; however, due to the financial international crisis, the FDI flows declined in 2008. They have begun to increase again, a trend that should remain.
The global investment report of the UNCTAD classifies the Netherlands as a front runner in what concerns countries with a high potential and a good performance for FDI.
|Foreign Direct Investment||2007||2008||2009|
|FDI Inward Flow (million USD)||115,365||-7,621||26,949|
|FDI Stock (million USD)||728,212||638,801||596,669|
|Performance Index*, Ranking on 141 Economies||13||140||54|
|Potential Index**, Ranking on 141 Economies||15||13||-|
|Number of Greenfield Investments***||131||173||155|
|FDI Inwards (in % of GFCF****)||74.2||-4.3||12.0|
|FDI Stock (in % of GDP)||93.6||73.2||75.3|
Note: * The UNCTAD Inward FDI Performance Index is Based on a Ratio of the Country's Share in Global FDI Inflows and its Share in Global GDP. ** The UNCTAD Inward FDI Potential Index is Based on 12 Economic and Structural Variables Such as GDP, Foreign Trade, FDI, Infrastructures, Energy Use, R&D, Education, Country Risk. *** Green Field Investments Are a Form of Foreign Direct Investment Where a Parent Company Starts a New Venture in a Foreign Country By Constructing New Operational Facilities From the Ground Up. **** Gross Fixed Capital Formation (GFCF) Measures the Value of Additions to Fixed Assets Purchased By Business, Government and Households Less Disposals of Fixed Assets Sold Off or Scrapped.
FDI Inflows By Countries and Industry
|Main Investing Countries||2009, in %|
|Main Invested Sectors||2009, in %|
|Mining, oil and chemicals||24.2|
|Food, drinks, tobacco||10.4|
|Metal and electronics||6.4|
|Transport, storage and communications||3.6|
|Banking and insurance||1.0|
Source: The Netherlands Bank
- Form of Company Preferred By Foreign Investors
- N. V. (Public Limited Liability Company)
- Form of Establishment Preferred By Foreign Investors
- Main Foreign Companies
- National Foreign Investment Agency has stories and names on their website.
- Sources of Statistics
Dutch Statistics Agency
Dutch National Bank
Why You Should Choose to Invest in the Netherlands
- Strong Points
- The Kingdom's strong points are highly developed communication and transport infrastructures, a skilled, productive and multilingual labor force, a strategic geographical location which is a gateway towards major European markets, a stable political and macro-economic environment and a very developped financial sector.
- Weak Points
- The country's weak points are the high cost of labor, the limited domestic market, relatively complicated legislation, a cumbersome administrative system and a structurally faulty road infrastructure.
- Government Measures to Motivate or Restrict FDI
- The Dutch economy is amongst the most open in the world. Since January 2007, the Dutch taxation environment for international companies has become even more attractive. The company taxation rate has dropped by 25.5%, which is well below the European Union average. The whole of the government measures can be referred to on the Netherlands Foreign Investment Agency website.
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