Meliá's Grand Reserve in Punta Cana.

15-04-2019

Foreign investment by Balearic businesses in 2018 increased by more than four times. Figures from the national ministry for industry, trade and tourism show that this investment reached almost 600 million euros last year, whereas it had been 138 million in 2017.

The regional ministry for employment, trade and industry views this development positively. Foreign investment is representative of a diversification of the Balearic economy, while the process of internationalisation improves general competitiveness. In addition, it demonstrates confidence in the Balearics and has inspired a "proactive dynamic" for business growth in the short to medium terms.

Antoni Riera, technical director of the private-public Fundación Impulsa for promoting competitiveness, echoes the views of the ministry with regard to confidence. He notes that investment is above the average for the current century.

Around 60% of the 600 million has been European, with one particular beneficiary having been Andorra. The level of investment there has reached 252 million euros, with Balearic holding companies focusing on the Andorra real-estate sector. Elsewhere in Europe, some 60 million euros have gone to France and 28.2 million to the UK, where the Brexit threat does not seem to have been a deterrence.

Away from Europe, the largest investment has been 82 million in the US, followed by 50.4 million in the Dominican Republic. In both cases, but especially the latter, the investment impulse has come from the hotel industry.