What key competitive advantages allowed the international success of the Luxembourg financial centre?
Gaëlle Attardo. – “Luxembourg is a small prosperous and landlocked nation bordered by Belgium, Germany and France. Luxembourg’s strategic location coupled with business-friendly regulations and policies that encourage innovation and strong public-private partnerships all contribute to the political and economic stability of the country. With a GDP growth standing well above the EU average, Luxembourg is an attractive entryway for global businesses looking to expand their footprint in the European market. Luxembourg is one of the most competitive financial centres in Europe – ranked in the top five countries.
The banking sector is one of the driving forces behind the nation’s economy, with more than 120 banks operating in the Grand Duchy. The pioneering Luxembourgish fund industry and dynamic insurance sector have made the country a financial centre of choice for both foreign investments and private clients. The success of its financial industry is due to its cross-border financial expertise, range of financial services offered, regulatory stability, skilled staff, and availability of an international-minded workforce.
Today, what do you think the main challenges are for the future of Luxembourg in the worldwide financial industry?
“The main challenges for growth:
- Internationalisation: Luxembourg must continue to emerge as a cross-border centre of excellence worldwide to attract more international investors and remain a global hub for financial transactions. Luxembourg has the potential to become a point of convergence for international market players from all continents;
- Innovation and sustainability: technological advancements and digitalisation must drive the innovation of products, services, processes and practices and therefore become Luxembourg’s financial ecosystem’s competitive advantage. Luxembourg ought to strengthen its position as the global reference point for sustainable development and finance. Its financial industry should seize the opportunity to lead by example in promoting and implementing sustainable operating models and purpose-driven approaches;
- Talent attraction: Luxembourg must remain an appealing location for employees with specialised skills and cross-border expertise but also for leading consultancy experts. Gender balance and housing shortages have to be addressed to maintain Luxembourg’s competitiveness.
What is your own role in the success of the Luxembourg financial centre?
“The Luxembourg Capital Markets Association (LuxCMA) represents the common interests of all stakeholders in the primary capital markets industry of Luxembourg. It aims to promote Luxembourg’s capital markets both locally and internationally, facilitate the exchange and collaboration among market participants, and foster innovation among the industry leaders. LuxCMA is a key contact for the authorities, associations, market practitioners, structurers, issuers and all other capital market players. LuxCMA plays an important role in supporting the growth and development of Luxembourg’s capital markets, helping to ensure that the industry remains competitive and innovative in the global marketplace.”