Investment Insights into German Investment in the Madrid Region

Invest in Madrid has held its FDI Insights for the second time. The second edition of this meeting on country-specific investment focused on the figures coming into the Madrid Region from Germany, one of the strategic countries for the Madrid and Spanish economies.

Germany is the fourth largest investor in both the Madrid Region and Spain, trailing only behind the United States, the United Kingdom, and France. Nationally, 8% of foreign capital entering the country comes from Germany, with 47% of it directly entering the Madrid Region, primarily in the form of acquisitions.

The numbers provide an insight into the significance of German investment in the Madrid economy. Well-known and diverse German companies such as BMW, Siemens, Bosch, DHL, Continental, or Allianz have headquarters in the Madrid Region, which also indicates the sectoral diversification of the country’s investments. In fact, the industry and services sectors accounted for the vast majority of German investments in 2022. 44% were allocated to services and 54% to the industrial sector, within which the energy sector received the largest German investment: nearly €9 billion.


Third in Employment Figures

Although Germany is the fourth largest direct investor in the Madrid Region, its position improves in terms of the number of jobs generated by German companies. The country is the third largest investor in the Madrid Region in terms of employment (10.8% of employment linked to foreign investment), behind only France (22.4%) and the United States (18.8%). Specifically, in our community, 61,663 jobs depend on German companies, accounting for 26% of the national total (239,718 direct jobs in Spain).


All these figures on German investment were presented by Andrés García, CEO in Europe of the consultancy firm Sifdi, one of Spain’s leading consulting firms specializing in the extraction and analysis of foreign direct investment data.


About FDI Insights


FDI Insights are meetings promoted by Invest in Madrid and coordinated with the respective chambers of commerce to analyze the foreign investment received by the Madrid Region from the main strategic countries. On this occasion, collaboration was provided by the German Chamber of Commerce for Spain and the consultancy firm Sifdi.


The event concluded with a roundtable discussion where various common scenarios encountered by German companies operating in the Madrid Region were shared. This involved mainly law firms such as Roedl & Partner, Gómez Acebo & Pombo, Monereo Meyer Abogados, CMS Albiñana & Suárez de Lezo, and Bove Montero.

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