The City of London as a destination for inward investment

When international companies consider establishing themselves in Britain, the conversation often begins with access to capital.

It is an important consideration, but it is far from the only one.

The enduring appeal of the City of London is the concentration of capabilities that sits around the capital itself: financial institutions, professional advisers, regulators, markets, technology companies, universities, investors and an international workforce.

Together they create an ecosystem that remains difficult to reproduce.

The evidence suggests that international investors continue to recognise this.

City of London Corporation research published in 2026 found that the UK was Europe's leading destination for financial and professional services foreign direct investment in 2025, both by number of projects and investment value. Capital invested in UK financial and professional services projects reached £1.7 billion during the year. Technology was the largest subsector for financial services FDI.

Those figures are encouraging, but inward investment should not be regarded as a league table.

The more interesting question is why a business chooses to come here and what makes it stay.

For a fintech company entering Europe, London offers immediate access to a sophisticated financial market. A founder can find prospective customers ranging from global banks to specialist asset managers, insurers, payment businesses and professional services firms.

There is also a regulatory environment with established mechanisms for engaging with innovation.

The FCA Regulatory Sandbox allows eligible businesses to test products with real consumers, while its Digital Sandbox provides access to datasets, technical environments and an industry community for firms developing new financial services technology. In 2026 the FCA has expanded this further through initiatives including its Supercharged Sandbox for AI and its Scale-up Unit for high-growth firms.

For an overseas founder, that infrastructure can be enormously valuable.

But the less tangible advantages of London should not be overlooked.

Much of business still depends upon relationships.

An overseas business can arrive in the City and, within a relatively short period, begin building relationships with lawyers, accountants, investors and prospective customers who understand both international commerce and financial services.

That professional infrastructure reduces friction.

Someone has probably encountered the regulatory question before. Someone understands how to establish the appropriate corporate structure. Someone knows the buyer inside the institution the founder hopes to approach.

This accumulated experience is one of London's most valuable assets.

There is, however, more we can do.

Too often inward investment is measured at the point at which a company opens an office or announces a certain number of jobs.

That is the beginning of the relationship rather than the conclusion.

The real test comes several years later.

Has the company built a genuine UK operation? Has it hired locally? Has it won British customers? Has it raised capital here? Has its leadership become part of the City's business community?

A successful inward-investment strategy should help businesses answer yes to those questions.

The City of London Corporation has itself argued for a more coordinated investment proposition, including a financial services investment hub designed to give international investors more tailored support when navigating the UK market.

That instinct is right.

International businesses do not simply need information. They need a route into the ecosystem.

This is an area where investors can play an important role.

At Rosary Capital, we see an opportunity to connect investment with market entry.

An international fintech company considering London may need capital, but it may equally need help understanding regulation, accessing institutional customers, finding advisers and developing relationships within the City.

Providing those connections can be as valuable as writing the cheque.

There is also an important reciprocal opportunity.

London should continue attracting companies and capital from the United States, Asia, Europe and the Middle East, while helping British businesses use the City as a base from which to expand internationally.

A global financial centre should work in both directions.

For centuries, London's strength has been its internationalism.

The names, technologies and markets change, but that principle has not.

The objective now should be to ensure that the entrepreneurs arriving in London see the City not simply as somewhere to establish a sales office, but somewhere from which they can build an international business.

If we achieve that, inward investment becomes something considerably more valuable than capital crossing a border.

It becomes a long-term commitment to the City.