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Luxembourg: a first class financial centre

Published Tuesday September 29 2015

Luxembourg is the third most competitive financial centre in the EU, behind Frankfurt and London, fifth in Europe, and 19th in the world, according to the latest Global Financial Centres Index.

Every six months, 98 world financial centres are studied by the consultants Z/Yen and the think-tank Long Finance. From this they calculate a composite index from 105 wide ranging variables and a survey of professional opinion.

Luxembourg received a score of 700 out of 1000 in the September 2015 report, putting it just behind to the likes of Zurich (715), Geneva (707) and Frankfurt (706). London (796), New York (788) and Hong Kong (755) were the three top-ranked global financial capitals. Luxembourg has made progress compared with the March 2015 analysis, sitting 8th globally for “business environment” (an improvement of 11 places) and also 8th for “infrastructure” (up 31 places).

These results are based on a survey of global financial sector professionals and analysis of the 105 indicators. Competitiveness is judged on a composite view of five categories of factors: business environment (taxes, regulation etc.); development of the financial sector; infrastructure (cost and availability of offices, etc.); human resources (training, flexibility etc.); and overall determinants of competitiveness (quality of life perception etc.).

As well, the Grand Duchy was placed 8th in terms of its potential for assuming an increased role. This is good news for this country and for global wealth creation. Competitive, innovative financial centres are important because the financial system is at the heart of the world economy, facilitating trade and investment locally and globally.

The report also categorises each financial capital on its degree of connectivity, the range of services on offer, and the extent of specialisation. On this basis, Luxembourg is judged to be a “global specialist”.

Access the full Global Financial Centres Index report.