Guests Countries and Regions 2008
Spain, a dynamic country in Europe
Spain profile Spain is a dynamic country. It is not only the eighth largest global economy, but it has also grown at a faster rate than the euro-zone in the last years (3.8% in 2007 in comparison to 2.9% in the EU-27 and 2.6% in the euro-zone).
The State is organized into Autonomous Communities, provinces and municipalities. There are 17 Autonomous Communities. 
Spain has the fifth largest population in the European Union, with a total of 45,200,737 inhabitants; it has a significant young population, mainly supported by the sharp increase in immigration. The 66.54% of the working population is employed in the service sector, 15.89% works in industry sector followed by construction, with 13.24%, and agriculture, with the 4.32% of the labour force.
In addition, Spain commands a privileged geostrategic position: it belongs to the European Union and it is the gateway to North Africa and Latin America (due to its strong economic, historic and cultural ties in this latter case).
Furthermore, Spain is a modern knowledge-based economy with services accounting for 67 percent of the GDP. The country has become a innovation center supported by a young, highly-qualified work force and competitive costs.
Spain is ranked 3rd in the EU in terms of the number of high-capacity toll roads and highways and 2nd in terms of the number of kilometers of high-speed railway tracks. In addition, it boasts 49 airports and 53 international ports which combined with the country’s geostrategic position make Spain as one of the leading hubs for passenger and goods transportation.
Of even greater importance is the Transport Infrastructure Strategic Plan, with total investments of 248 billion projected for the 2005-2020 period.
Trade and Investment evolution
In recent years, the rapid growth in imports and exports has made Spain one of the most internationally-oriented countries in the world, with figures for Spanish foreign investment reaching $110,000 million in 2007.
Spain's main trading partners are the 25-nation EU Member States, accounting for 70.2% of total exports and 59.0% of imports, followed by the Latin American countries (4.8% of exports and 4.7% of imports), and the United States (4.2% of exports and 3.6% of imports).
Spain is one of the most active countries trading goods and services. With regards to the trading of goods, it is ranked 18th in the world as an exporter and 12th as an importer, while in the trading of services it occupies 6th place as an exporter and 10th place as an importer.
The Spanish share in global export and import of goods is 1.70% and 2.50% respectively. The Spanish share in world global export and import of services stands at 3.80% and 2.90%.
With regards to investment, it is worth highlighting the increase in inward investment received since 1996. In recent years, Spain has been one of the main recipients of foreign direct investment.
In 2006 it was ranked 8th in the world in accumulated FDI stock and 16th in terms of investment flows. In gross terms, FDI reached in 2007 €36,031 million, corresponding to €28,849 million of productive investment and to €7,182 of portfolio investment.
Proof of how highly developed the Spanish economy is, is the fact that, since 1997, the outward investment flows have outstripped inward investment flows.
Spain is also a highly attractive country for the financial markets, as shown by the figures for portfolio investment which accounts for over 13% of the GDP. This is due to the dynamism and innovative nature of the Spanish financial system.
Main sectors
Biopharma
The biotechnology sector is booming in Spain. In 2006 there were nearly 500 companies involved in biotechnology activities in Spain with a turnover of around 20,000 million euros and R&D spending in excess of 200 million euros according to data provided by the Spanish Association of Bio-Enterprises, ASEBIO.
In Europe this business dynamism is only exceeded by Ireland. Spain provides potential investors in biotechnology companies with impressive human resources, more than 7,000 biotechnology and biomedicine researchers, excellent infrastructures for the development of the sector, and a very favorable regulatory system.
ICT
The Information and Communications Technology market in Spain has grown more than any other in Europe. It amounted to 54,000 million euros in 2006, an increase of 6.5% in comparison to 2005, 1.5% higher than the figure recorded for the European Union as a whole (4.9%). Important factors promoting the development of Spain's ICT sector include the spread of broad band connections, major competition in mobile services, government plans to develop the knowledge economy and the quality of Spanish professionals and technicians.Renewable Energy
Spain is the most attractive country in the world for investment projects in renewable energies according to Ernst & Young’s Renewable Energies Attractiveness Indexes.
There are several factors that make Spain ideal for developing Renewable Energy projects including a favorable regulatory system and institutional support for the development of the sector:
- Spain is 2nd in the world after Germany for total installed wind capacity.
- Spain comes 4th in Europe for the use of solar thermal energy, a 6% market share in Europe.
- As for bioenergy, Spain is first in bioethanol production, fourth in biogas production and fifth in terms of biofuel consumption in Europe.
Environmetal
The environment market in Spain currently manages around 10,820 million euros annually. The figure is 3.2% of the business worldwide and 8.9% in Europe. There are more than 2,000 national and foreign companies active in the environmental sector in Spain with a workforce of close to 250,000 and increasing every year.
The environment sector is developing in tandem with the innovation of the technology. Major steps have been taken in Spain in this field such as technology applied to irrigation and developments made in tarmac and hydrogen technologies.
Why Spain is so attractive ?
The geostrategic location of the country as a platform for international business is another advantage for investments made in Spain. For the European Union, Spain is the port of entry to the Mediterranean and North Africa, and to Latin America because of the strong economic, historical and cultural ties that join Spain with the Latin American countries.
Other competitive advantages held by Spain include excellent transport, energy and telecommunications infrastructures, a labor market combining a young and highly qualified population with competitive labor costs (below the Euro Zone average) and the competitiveness of the cost of utilities, renting offices and telecommunications.
Moreover, the tax system is very attractive to companies. The tax burden (measured as the percentage of GPD paid in taxes and social security payments) is 5% lower than the average for countries to which it has close ties. What is more, tax reforms have been made to significantly reduce Company Tax rates, from 35% in 2006 to 30% in 2008.
Sucess Stories
There are now over 11,000 foreign companies set up in Spain, including most of the Fortune 100. Some of their testimonies and experiences in Spain can be accessed through INTERES´ website:
- "In terms of R&D and Innovation, Spain has made a huge investment effort over the last few years.The outlook is favorable", Cristóbal Medina Pardo, Country General Manager Polaroid Iberia & Italy
- “Before coming to Spain to do business, we were well aware of just some of the following advantages: One of the largest economies in Europe, high level of disposable income,hard-working, talented and motivated employees...", Willian Armitage, International Business Developement of IG MARKETS
- "We feel the support received from local, regional and central government has been second to none", Juan Bóveda, Chief Executive of Theolia Ibérica
- "In terms of the maturity of the mobile communications markets, we could say that we are at the forefront in Europe", Marieta de Rivero, CEO Nokia
- "Madrid provided the best balance between the need for business efficiency, flexibility and costs, and was an attractive destination capable of attracting and recluiting talent", Jaime Giné, Vice President of Development Services Worldwide of Electronic Arts.
For further information about Spain contact:
INTERES. Invest in Spain
Orense, 58, 3ª - 28020 Madrid
Tel: +34 91 503 58 00
Fax: +34 91 503 58 03
Correo-e: interes@interes.org
www.investinspain.org
