Luxembourg Business delegation visits Edinburgh and Glasgow from 29th – 2nd November
Luxembourg is one of the world’s most open economies, a key member of the EU and an economic power of the Greater Region – a cross border region covering neighbouring regions in Belgium, France and Germany with a population of more than 11.5 million. On the 29th October, the Edinburgh Chamber of Commerce will host a business delegation from Luxembourg accompanied by the Luxembourg Chamber of Commerce.
Over the past 40 years, Luxembourg evolved from a steel-based to a diversified knowledge-based economy that has developed an ecosystem to assist spearheading entrepreneurial projects and is becoming a centre of excellence in many domains through R&D, innovation and international cooperation.
Although Luxembourg is mostly renowned for its financial sector, other industries, such as the automotive and tourism sectors and audio-visual production services are also seeing rapid growth encouraged by the Government that is seeking to diversify the national economy.
Today Luxembourg’s key sectors are:
- Finance Sector: Luxembourg is home to 139 banks from 28 countries, mainly specialised in investment fund administration, life insurance and private banking. Today the sector is characterised by its international dimension, its high degree of diversification, its stability and its capacity for innovation (e.g. renminbi, climate finance, micro-finance, Islamic finance). Luxembourg is one of the few countries in the European Union that managed to maintain its AAA rating. Furthermore, Luxembourg is the 2nd largest fund industry centre in the world and the 1st in Europe (figures as of 2017).
- Logistics Sector: The country developed a leading position as an intercontinental and multimodal logistics hub. Luxembourg’s air cargo centre is the 5th largest in Europe and home base for companies such as Cargolux Airlines. The country is also linked via a dense railway network and has created a multimodal logistics centre providing regular transport solutions to the ports of the North Sea, the Baltic Sea and Southern Europe. A direct rail link to China is under development.
- ICT Sector: The sector’s strength can partly be attributed to cutting-edge infrastructure, progressive regulation, attractive taxation and a sectorial policy suited to attracting major global players such as Skype, eBay, Apple iTunes and Paypal. Specific areas such as Fintech, cybersecurity and big data & high performance computing continue to enrich Luxembourg’s ICT business landscape. 40% of Tier- 4 certified datacentres are located in Luxembourg.
- Space Sector: Building on its long history at the forefront of the commercial communications industry (e.g. RTL, SES Astra), Luxembourg plays a leading role in the exploration and utilisation of spatial resources, including rare metals found in asteroids. In 2018, Luxembourg launched its own space agency.
- Research and Innovation Sector: Luxembourg invested heavily in R&D and innovation. According to the European Innovation Scoreboard, which provides a comparative analysis of innovation performance between countries, Luxembourg ranks among the “Innovation Leaders” in 2018. Global players such as Goodyear, Delphi or Dupont have established their R&D centres in Luxembourg.
- EcoInnovation Sector: Some 200 Luxembourg companies operate in fields related to renewable energy, waste management, water management, eco-construction and e-mobility. In 2017, Luxembourg hosted the Circular Economy Hotspot that enabled the country to showcase its best practices in this field.
Since 2002, the creation of clusters in sectors considered as vital in terms of the national economic diversification has been encouraged. These clusters cover a wide spectrum of activities such as materials and production technologies, ICT, BioHealth, EcoInnovation, Automotive components, Maritime, MICE, Wood Industry, Creative Industries, Space and Logistics.
Numerous public and private structures now accommodate and support start-up projects in order to further strengthen the ambition to become a real start-up nation.
The small size of Luxembourg’s domestic market means that every business must think beyond national borders. These characteristics, coupled with the fact that the country benefits from a stable and business friendly environment and is one of the most multilingual countries in the world, makes Luxembourg a reliable and innovative partner, whilst providing an ideal environment for business and investors to thrive.
For further information:
- The Luxembourg Economy : http://www.cc.lu/uploads/tx_userccpublications/web_EN_brochure_eco_lux_0917_CDC.pdf
- Establishing a Business in Luxembourg :
- Luxembourg’s Cluster Initiative :
Jeannot Erpelding, Director, International Affairs, Luxembourg Chamber of Commerce