As a well-known gateway to the European market, and at the same time home to the main institutions of the European Union, Luxembourg is often featured in global top rankings.
However, there are some interesting Luxembourg facts that make Luxembourg a smart location for high-performance business and industry.
Let’s learn more about 6 business facts about Luxembourg that make the country a renowned hub for international trade and investments.
1. Top green finance center
Several indexes evaluate financial centers around the globe using a variety of indicators. Global Financial Centre Index, the Index of New Financial, and the Global Green Financial index are well-trusted data sources that compare different groups of countries.
One of the surprising business facts on Luxembourg is that, according to each one of them, Luxembourg is among the most highly rated financial centers in the European Union.
The Global Financial Centre Index, for example, evaluated the future competitiveness among the 100 biggest financial centers in the world and rated Luxembourg among the top 3 financial centers in Europe.
Furthermore, the New Financial Index considers international financial activities including banking. This report ranks Luxembourg as the 2nd most dominant financial center within the EU.
Finally, when it comes to green finance, the Global Green Financial Index declared Luxembourg to be one of the highest-ranking green finance centers on the continent.
Green finance represents an intertwinement between sustainable economic development and traditional economy investments through innovative financial mechanisms.
2. A European space hub
Exploration of the space and its resources is highly prioritized in Luxembourg. The first concrete move for pushing the Space Agenda was to launch the Space Resource center in 2016.
Did you know that the Grand Duchy is the first European country, and the second worldwide, to offer a legal framework on the exploration and use of space resources, ensuring that private operators can be confident about their rights on resources they extract in space?
The main goal of the center is to become a hub that will foster commercial aspects of the Space Agenda. At the same time, it will provide a suitable business environment for reaping the benefits of space-based activities.
Luxembourg already has success with the satellite industry, and further exploration of space is a logical step in the advancement and further use of its resources.
The country continuously supports the active presence of private sectors and emphasizes the role of innovation, commercialization, and overall contribution of the whole economic sector in this area.
This is best demonstrated through participation in this years’ Expo 2020 Dubai, where Luxembourg will have a “Space Week” as a part of the official Expo program.
3. The country supports green and sustainable businesses
The circular economy model has been strongly advocated by the European Union in recent years. Luxembourg, as one of its main centers, doesn’t stay behind.
Innovation has a strong root in Luxembourg’s economy, and it applies to the development of innovative sustainable concepts in the business sector.
The circular economy aims to regenerate natural systems while providing solutions to pollution and waste management and, at the same time, keeps materials and products in use.
As a direct legal mechanism, Luxembourg adopted the Sustainable Finance Strategy with the aim of redirecting a certain capital to sustainable businesses which directly influenced the number of companies who are interested in working on renewable energy, water, waste management, etc.
4. A wide range of funding opportunities
Luxembourg is a gateway to the European market. The country offers expertise in many areas, especially ICT and finance. Known as a favorable start-up and innovation environment, Luxembourg offers different funds on both national and European levels.
In terms of national funding, interested businesses can find schemes related to research funding, innovation, and development. Also, the Luxembourg Government provides several aid schemes such as process innovation and service organization and research infrastructure investments.
When it comes to the European funds, the resources are provided by Horizon Europe, a financial instrument developed by the European Union that supports science, innovation, and research.
5. A high level of protection both offline and online
Another surprising fact about Luxembourg is that it is among the most open economies in the world.
The country doesn’t have restrictions on foreign ownership. It provides secure, legally protected business functionality – especially when it comes to contracts and property rights.
In addition, given the role of data safety in a data-driven society such as Luxembourg, the Luxembourg Cybersecurity Competence Center is formed to ensure the resilience of businesses and economy-related organizations to potential cyber threats.
6. Strongly focused on research
Apart from having numerous public research centers such as University of Luxembourg, LIH (Luxembourg Institute of Health), and LIST (Luxembourg Institute of Science and Technology), Luxembourg is home to many international private research centers.
Several world-renowned companies such as Goodyear and Delphi have hundreds of experts employed within the Luxembourg borders.
Research centers, on the other hand, work actively on developing and testing new sustainable concepts, like the BIOVAL project where the Luxembourg Institute of Health participates as a partner.
Setting an example as a smart and stable economy, Luxembourg already had a strong leading position in research.
With its highly skilled workers and a business-friendly environment, Luxembourg fosters innovative approaches. This makes it an attractive location for those willing to invest or those who want to open a company in Luxembourg.
For companies interested in trade and investing in Luxembourg, please contact the corresponding Luxembourg Trade and Investment Office in your region. A wide range of different support mechanisms is available for companies around the world interested in investing in Luxembourg.
Expo 2020 Dubai will be the perfect opportunity for networking, potential investment chances, and future partnerships for those interested in business opportunities in Luxembourg. Come visit the Luxembourg pavilion in the Opportunity District and let’s create synergies!