Luxembourg climbs the ladder in Global Financial Centres Index
The Luxembourg financial centre has improved its standing in the Global Financial Centres Index 2013 and now ranks 18th (up six places from 24th in 2012). Of the 79 financial centres analysed, it is considered to be one of the rare financial centres that will grow in importance in the near future, together with Singapore, Shanghai, Hong Kong, Seoul, Toronto and Sao Paulo. At a European level, Luxembourg ranks 5th behind London, Zurich, Geneva and Frankfurt.
According to the index, Luxembourg is classified as a global player that is highly specialised.
Points are assigned in the following categories: Business environment, people, taxation, reputation, infrastructure and market access.
Furthermore, the study uses three key measures to determine the competitiveness of a financial centre, namely specialty, connectivity and diversity. Connectivity describes how well a financial centre is known worldwide and to what extent non-residents believe it is connected to other financial centres. Diversity refers to financial sector diversification in the centre. Finally, specialty is a benchmark resulting from the difference between the GFCI rating and the industry sector ratings in a range of areas: investment management, banking, insurance, professional services, government and regulation.
The Grand Duchy climbed 41 points since the previous year - equal to 6 places –, making it one of the most significant risers in the study.
The top five financial centres, London, New York, Hong Kong, Singapore and Zurich, did not change their rankings compared to last year’s GFCI. Despite the Eurocisis, European financial centres remained competitive. Frankfurt, for instance, entered the top ten by climbing 3 places to rank 10th. This is almost certainly due to Chancellor Merkel’s tough European policy.
Regarding the Middle East, Riyadh was the financial centre showing the strongest progression overall from 2012 to 2013 in the ranking, climbing 31 places from 65 to 33. EA