Mayor London: The UK is the Number 1 “hub” for asset management in the world
Introduction:
Mayor London In recent years, London has solidified its position as the unrivaled global hub for asset management. With its robust financial infrastructure, diverse talent pool, and favorable regulatory environment, the United Kingdom has become the go-to destination for investors and asset managers from around the world. In this blog post, we will explore the factors that have contributed to London’s rise as the epicenter of asset management and examine the city’s prospects for the future.
New York
London comes in second place after New York as the second largest center in the world for money and asset management. It is famous for its ability to provide services to the wealthy, government agencies and major companies all over the world, and has great experience in developing long-term investment portfolios.
After its exit from the European Union, the United Kingdom is striving to strengthen its bilateral economic relations with various countries of the world, including the Gulf Cooperation Council countries.
In 2021, the UK attracted 51 foreign investment projects in the financial services sector, with a total value of £646 million. It still has unique international financial influence.
Financial services trade
In 2020, despite the challenges facing the world that year, the UK’s financial services trade surplus rose by 8 percent year-on-year, reaching 63 billion pounds sterling, exceeding the net financial services exports of the United States, and ahead of surplus values. Cumulative growth for France, Singapore, Germany and Hong Kong, according to the latest report issued by the City of London and the British Treasury.
Also in the same year, the financial services sector contributed £173.6 billion to the UK economy, constituting 8.3 percent of GDP.
In the historic palace in London’s financial and business district, opposite the Bank of England, the magazine conducted an exclusive interview with the mayor of the financial district, Nicholas Lyons, who plays the role of the United Kingdom’s international ambassador for the financial and professional services sector, and also chairs the City of London Corporation, which is the governing body. Supervisor of the financial district in the British capital.
Arab Gulf states
In his speech, he explained the goals of his upcoming visit to the Arab Gulf states, which is his second to the region this year, as he previously visited Saudi Arabia and the United Arab Emirates last February, and this time he will visit both Qatar and Bahrain.
Lyons expressed his pride in the fact that the UK has the largest number of start-ups in Europe, is home to world-class universities, is a major exporter of financial services in the world, and is committed to sustainable finance and the green economy, as well as its investments in clean energy technologies.
Sixth largest economy
Britain has the sixth largest economy globally, and although economic growth has slowed recently, it has largely managed to avoid widespread expectations of recession, and has shown unexpected resilience.
Lyons expressed his satisfaction with the recent news confirming that the annual consumer price inflation rate fell to 6.7 percent last August, compared to 6.8 percent in July. While this decline is encouraging, it is still one of the highest inflation rates in Europe.
Free trade agreement with the Gulf countries
Last year, the UK began negotiations to reach a free trade agreement with the Gulf Cooperation Council, which consists of Saudi Arabia, the United Arab Emirates, Qatar, Bahrain, Kuwait and Oman. The GCC countries are ranked seventh among the UK’s largest export markets.
According to British government statistics, the GCC bloc’s demand for international products and services is expected to rise significantly to reach 800 billion pounds sterling by 2035, which represents an increase of 35 percent, in a development that presents great opportunities for asset management companies in the Kingdom. United.
Free trade agreement
Lyons stressed that the free trade agreement would also pave the way for increased investment from the Gulf region, thus enhancing job opportunities in the United Kingdom.
These negotiations represent the fourth major group of Free Trade Agreement (FTA) discussions initiated by the British government, after India, Canada and Mexico, following Britain’s exit from the European Union.
The UK currently manages around £11.6 trillion in assets and funds, nearly three times Germany’s GDP, of which approximately 45% is for holders of international assets abroad.
NICHOLAS LYONS, MAYOR OF THE CITY OF LONDON
Here is the transcript of the interview with Mayor Lyons:
• What are the main areas that top your agenda in your meetings with Gulf officials as the UK’s International Financial Ambassador?
We have a global futures campaign, which is a multi-year project working with the City of London Corporation, the Department for Business and Trade and the Investment Association.
We are speaking to major asset owners around the world to encourage them to invest more of their money through the UK. We currently manage around £11.6 trillion of assets and funds, nearly three times Germany’s GDP, of which approximately 45 percent is for holders of international assets abroad.
Clean Finance and Green Technology
Another important aspect of our discussions will revolve around the shift towards clean finance and green technology. It is noteworthy that countries with economies based on hydrocarbons are currently witnessing a major transformation.
Not only do these countries rank as the largest producers and exporters of hydrocarbons, but they are also becoming increasingly prominent investors in renewable technologies and clean energy.
And there’s a lot we can do because I think London sees itself as a leader in green and sustainable finance, transition finance.
So working with very large hydrocarbon countries is an important part of our role in trying to deal with the global challenge that we face and help them manage their assets in that long-term transition.
• What distinguishes London as a financial services centre, and why do Gulf countries and other countries find it attractive for their financial needs?
$1 trillion in sustainable infrastructure
I believe that it is necessary to view London as a center that excels in providing diverse services with high efficiency.
For example, consider our cooperation with India on the Sustainable Infrastructure Programme. India plans to invest more than $1 trillion in sustainable infrastructure over the next two decades, and they turn to London because of our exceptional competence in project management, finance, capital markets, securities law, risk management, and insurance.
When all these aspects come together, the wonder disappears and it becomes clear why more people are drawn to London, especially when they face complex and long-term structural challenges.
Moreover, London today is a center for intellectual capital, as it is the place where you can interact with experts who are able to help you find solutions.
To illustrate this point further, within a short distance of this location, there are 65 insurance companies, representing London’s unparalleled stock of legal expertise.
1. Financial Infrastructure:
London boasts a world-class financial infrastructure that is second to none. The city is home to the London Stock Exchange, one of the oldest and most prestigious stock exchanges globally. Mayor london
It provides a platform for companies to raise capital and investors to trade securities. Additionally, London’s extensive network of banks, insurance companies, and financial institutions offers a wide range of services to support asset management activities.
2. Talent Pool:
London attracts top-tier talent from across the globe, making it a melting pot of expertise in asset management. The city’s universities produce a steady stream of highly skilled graduates in finance, economics, and related fields.
Moreover, London’s multicultural environment and reputation as a global financial center make it an attractive destination for professionals seeking career opportunities in asset management. The presence of experienced fund managers, analysts, and other industry specialists further enhances the city’s appeal.
3. Regulatory Environment:
The UK’s regulatory framework is renowned for its stability, transparency, and investor protection. The Financial Conduct Authority (FCA) ensures that asset managers adhere to stringent regulations, promoting trust and confidence in the industry. Mayor london
London’s regulatory environment strikes a delicate balance between safeguarding investors’ interests and fostering innovation, making it an attractive destination for asset managers seeking a secure and dynamic marketplace.
4. Global Connectivity: Mayor london
London’s strategic location and excellent transport links provide unparalleled connectivity to global markets. The city’s time zone allows for seamless interaction with financial centers in Asia, Europe, and the Americas.
This advantage enables asset managers in London to access a diverse range of investment opportunities and serve clients across different time zones effectively. The presence of a vast network of international banks and financial institutions further facilitates global connectivity.
5. Innovation and Technology:
London has embraced innovation and technology, driving the transformation of asset management. The city is at the forefront of fintech advancements, with numerous startups and established companies developing cutting-edge solutions for asset managers. Mayor london
The adoption of artificial intelligence, machine learning, and big data analytics has revolutionized investment strategies, risk management, and client servicing. London’s commitment to fostering innovation ensures that asset managers have access to the latest tools and technologies to stay competitive in a rapidly evolving industry.
Future Outlook: Mayor london
London’s position as the global hub for asset management seems poised for further growth and success. The UK government’s commitment to maintaining a favorable business environment, coupled with ongoing investments in infrastructure and talent development, will continue to attract asset managers from around the world.
Additionally, London’s ability to adapt to changing market dynamics and embrace emerging technologies will ensure its relevance in the future of asset management. Mayor london
• I mentioned that London is a center for what I called “intellectual capital.” The United Kingdom is already a leading educational center in the fields of finance and economics, as it includes some of the best universities in the world. How can this help increase its global share of foreign direct investment?
Top 20 universities in the world
Yes, in this country we have seven of the top 20 universities in the world. The UK has a rich history of entrepreneurship, and this spirit continues to flourish.
Nowadays, we are dealing with the critical challenge of providing late-stage venture capital funding to support our technology, especially green technology, renewable technology, fintech, and biotechnology companies. Our goal is to generate opportunities for foreign direct investment.
By leveraging our experience, we can attract foreign direct investment to the UK to sponsor and expand their projects. Our ultimate goal is to keep these companies within the UK to the greatest extent possible.
Getty Images• You have ambitious plans to set up a £50bn UK technology investment fund to rival California’s Silicon Valley. Can you tell us more about this fund?
In fact, one of my primary goals is to launch an initiative to create a “Future Growth Fund,” which will serve as the primary collective investment vehicle to finance a wide range of startups.
This fund is designed to provide significant diversification across various sectors, including UK technology companies, fintech, green technology and biotechnology companies.
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International investors Mayor London
It represents an important opportunity for international investors to benefit from the wealth of intellectual property in the United Kingdom, as these companies are headed by a group of young people who graduated from prestigious British universities.
Thus, instead of making individual investments in specific companies and trying to predict which ones will succeed, the proposal seeks to create a collective investment fund, comprising a wide range of investments in various sectors, creating great diversification.
This approach reduces the risks associated with an individual company’s investments and distributes them across a diversified portfolio. I believe that this will be very attractive to sovereign wealth funds, especially Gulf sovereign funds.
It recently signed an agreement that included nine of the largest companies in the pension market to allocate 5 percent of its invested funds in small and emerging companies that are not listed on the stock exchange.
That will be a £50 billion fund by 2030. We will be looking to attract a lot of foreign investment into that as well, and I think that will be an attraction for it again, as Gulf money will look to invest in it.
And I think people, you know, like to come to the UK and work in a collaborative, multicultural environment, and I find that very beneficial. You know that there are more small businesses start-ups in the UK than in the rest of Europe. These unlisted companies are worth more than £1 billion. Mayor london
In the next three decades, we expect the number of unexploited hydrocarbon resources remaining underground to increase. As a result, Gulf countries are actively pursuing a strategic shift towards a more sustainable and smart approach
• As the world transitions from fossil fuel-based systems to renewable energy sources, Gulf countries are also keen not to miss green investment opportunities as investors increasingly tend to prioritize environmental and social governance. What is your opinion on this booming market?
Hydrocarbon resources
In the next three decades, we expect an increasing number of untapped hydrocarbon resources remaining underground.
As a result, Gulf countries are actively pursuing a strategic shift towards a more sustainable and smart approach.
They are redirecting their wealth not only to renewable technologies, but also to expanding their presence in the financial services sector, and during our discussions with Gulf countries, we have observed a significant focus not only on renewable technology and the path to sustainability, but also on the development of financial services. Mayor london
Strategic investment Mayor london
They are keen to explore ways to collaborate with London in strengthening their financial positions, and clearly recognize the need to enhance their long-term investment, asset management and insurance capabilities.
These discussions underscore the importance of relations between the Gulf states, Saudi Arabia and the United Kingdom. Mayor london
Saudi Arabia, in particular, has significant resources that require strategic investment. Although they are active buyers of bonds, they are also committed to ensuring that a portion of their investments are compatible with sustainability goals, positioning them to play a major role in the global green bond market.
Conclusion:
London’s ascent as the world’s leading hub for asset management is a testament to its financial infrastructure, diverse talent pool, favorable regulatory environment, global connectivity, and commitment to innovation. Mayor london
The city’s unique combination of factors has created an ecosystem that fosters growth, attracts investment, and drives innovation in the asset management industry. As London continues to evolve and adapt to the changing landscape, it is well-positioned to maintain its status as the unrivaled global hub for asset management. Mayor london
I’m Hassan Saeed, a Clinical Psychology graduate deeply engaged in the realms of WordPress, blogging, and technology. I enjoy merging my psychological background with the digital landscape. Let’s connect and explore these exciting intersections!
