Top 7 industries for business investment in the UK: where to invest money
Where to invest is the primary issue for business owners. In the UK, traditional and innovative industries are developing. We offer an overview of seven top industries that have shown growth over the last 5-7 years.
In the UK, there are 30 significant technology clusters. Investments in start-ups reach £ 1 billion, and the e-commerce market is the largest in Europe.
Technology businesses are considered the heart of the UK economy and play an important role in driving growth. It covers industries from financial services and high-value industries to retail and agriculture. Here are a few quick facts:
There is a start-up culture that supports technology clusters throughout the UK;
- The UK ranked fifth place in the Global Innovation Index in 2016;
- 4 out of 10 top universities in the world that specialise in technology are in the UK.
Throughout the market IT is developing, expanding solutions, data management and analytics, as well as intended for intelligent manufacturing.
London is one of the top global financial centres along with New York, Singapore and Hong Kong. Global investment companies and financial institutions choose the UK for their headquarters. The number of people employed in the financial sector exceeds 1 million.
Many international companies open offices in London, which offers unique conditions for development:
- a better business environment;
- the most developed financial centre
- the most impressive infrastructure;
- best labour resources;
- impeccable reputation.
Because of these attributes, London was ranked top global financial centre in 2016.
- Real estate
The UK property market is estimated at 12 trillion US dollars, (approximately 10 trillion pounds Sterling). In 2017, growth was 4.7%, and the trend continues. This applies to luxury apartments and residential middle-class real estate, which is often bought for renting and receiving passive income.
At the same time, along with London and the suburbs, cities with developed infrastructure and transport links are popular among investors. Experts see the potential for market development in central and northern England and note the availability of promising sites in the south-east of the country.
Real estate investments are considered strategic. Over the next five years, rental growth in London is estimated to reach 24.5%, and in the country as a whole – 19%, which increases the attractiveness of investments.
- Capital investment
The government stimulates capital investments in projects, enterprises and companies. Investors have access to more than 80 entities in the UK, investments in which are supported by the government . Priority sectors include:
- science and industrial parks;
- infrastructure projects for energy.
The government aids international investors who meet their criteria. Companies are guided along the most efficient way of investing capital, helping to master the rules and policies of the UK in the field of investment.
New projects are being introduced throughout the country, which ensures sustainable economic growth in the regions.
- Asset Management
In 2016, the asset management market grew to a record 8.1 trillion pounds sterling and has the potential for further growth. Foreign investors own 40% of medium-sized management companies.
Fund managers with foreign parent companies manage 57% of assets in the UK. Such data informs the Investment Association. (https://www.theinvestmentassociation.org/)
The most popular type of funds are life insurance and retirement insurance. Charities and health organisations make up 79% of the total number of management companies in the UK and 44% of them are pension funds.
- Agro-industrial sector
Great Britain is a country with a strong agricultural sector. The annual value of the agricultural market is 110 billion pounds. Such indicators are achieved through improved supply chains, advanced research and competitive pricing.
The government annually invests 400 million pounds in research. This applies to all areas of the agro-industrial sector:
- water management;
- crop production;
- technology introduction.
The government also supports agriculture with competitive tariff and tax policies and a sustainable supply chain. Investors receive assistance in finding business partners for trading products in the domestic market and for export.
- Creative industries
In the creative sector in the UK there are 2 million active workers, – twice more than in the financial sector. This is the largest project market in Europe.
In 2016, customers invested 1.6 billion pounds in media/creative production.
Creative industries are developing three times faster than other sectors of the economy. There are opportunities for talented, technically educated and capable individuals. 60% of vacancies are occupied by graduates who undergo excellent training in one of the most famous education systems in the world.
The UK has a strong international media presence with filmmaking, TV production, advertising, music production and mobile content. London is also one of the world fashion capitals.
In total, the list of promising industries includes 31 areas of the economy, which means that each investor finds a niche and favourable conditions for investing. To start with, any foreign companies wanting to relocate to the UK receive a 25% tax benefit as incentive.
For more information on how to start a business in the UK, check with UK Business Consult.
Contact us to find out more about the United Kingdom and its business opportunities.