Netherlands boosts allure for firms in Brexit fallout

Companies are being drawn to the Netherlands as a result of Brexit, but the coronavirus outbreak caused fewer foreign firms to go to the country in the past year on the whole, the Netherlands Foreign Investment Agency, or NFIA, said in its annual report.

The Netherlands remains popular with companies that are experiencing disruption due to Brexit and are looking to secure their European operations. The number of these companies that have opted to move to the Netherlands is increasing, the NFIA said.

Since the referendum in the UK in June 2016, 218 Brexit companies have opted for the Netherlands, of which 78 made the (partial) move last year. These 218 companies together are expected to generate 6,000 jobs and 544 million euros ($662 million) in investments in the first three years after arrival, the report said.

Jeroen Nijland, NFIA commissioner and chairman of the Invest in Holland network, said that 2020 was "a year with two stories".

"The Netherlands is well-positioned for international companies looking for a stable base to serve the European market; for example, companies relocating operations due to Brexit," he said. "At the same time, the number of wider inward investments did see a decrease. This effect can largely be explained by the global coronavirus crisis."

The NFIA is currently talking to 550 Brexit companies about relocation or expansion to the Netherlands. This includes British companies, but also US and Asian parties that are reconsidering their current European structure due to the uncertainty caused by Brexit, the report explained.

"I am pleased with all the foreign companies that have opted for the Netherlands. These international companies make an important contribution to our economy," said Bas van't Wout, the minister of economic affairs and climate policy responsible for the NFIA, while emphasizing the importance of foreign businesses.

Under pressure

Foreign business investment has been under pressure everywhere since the coronavirus pandemic. The global crisis and growing economic uncertainty, coupled with fluctuating travel restrictions and supply chain problems, are making companies reluctant to open new offices.

In 2020, the Netherlands saw the number of foreign business investments decrease by about a quarter compared to 2019, while the number of jobs created fell by about 40 percent. An even stronger decline in investments is being tempered thanks to strong Dutch sectors such as life sciences and health, IT, and agrifood.

Last year, 305 foreign companies chose to set up shop in the Netherlands. These companies expect to create more than 8,600 direct jobs in the first three years and invest 1.9 billion euros in their projects, the report said.