The Chamber’s Vice President, Mónica Fernández-Mejuto, and His Majesty’s Trade Commissioner, Mr. Chris Barton, at the III Annual Business Cocktail in Madrid. This event played a pivotal role in strengthening the relationship between the two countries.
Spain is one of the biggest consumer markets in the European Union and one of the top 10 trading partners for the UK. Therefore, it presents an array of opportunities for UK companies looking to expand their business. As we delve into the historical relationship between the two countries and the potential of this partnership, it’s clear that the UK-Spain connection is not just historical; it is a gateway to future growth and innovation.
A commercial relationship established in 1494
For many centuries, Spain and the United Kingdom have maintained strong business relationships. In fact, Spain was one of the first countries to assign a permanent ambassador to the UK when King Ferdinand, Fernando el Católico, appointed a diplomatic representative to the Court of St. James in 1494. In addition, prior to Brexit, both countries formed part of the European Union for many years, sharing common values and systems. The historical ties between the UK and Spain, combined with the geographical proximity, highly developed market economy and the vibrant tourism, make trading between the two nations an opportunity not to be missed.
In addition, Spain serves as a crucial gateway to America, where Spanish is widely spoken, and many leading Spanish companies have substantial operations. This linguistic and cultural connection offers invaluable opportunities for businesses seeking to expand into these markets. Furthermore, with only 22% of Spaniards speaking English as a second language, Spain’s role as a bridge to Spanish-speaking countries is an even greater asset for English-speaking businesses looking to tap into the vast potential of Latin America.
Alicia Varela, International Trade and Investment Director at the Spanish Ministry of Economy and Business, speaking at the same event, which united the Spanish and British business community and strengthened relationships between companies.
Unlocking opportunities: foreign investment in Spain
When it comes to foreign investment, the United Kingdom ranks as the second-largest investor in Spain, contributing 17.8% of total foreign investments in 2022. This high level of investment underscores the strong economic ties between the two countries and reflects the confidence UK investors place in Spain’s robust market.
Spain’s dynamic and diverse economy offers a wealth of opportunities for British companies across various sectors. Notably, Spain is a global leader in renewable energy, excelling both technologically and industrially. The country’s significant potential for solar and wind farms is particularly attractive, given the growing global demand for clean energy solutions. Investing in these areas not only helps meet sustainability goals but also capitalises on Spain’s ideal climate and cutting-edge expertise, making it a strategic choice for companies looking to lead in the green energy revolution.
Life sciences is also a thriving sector, with Spain ranking as the 9th largest pharmaceutical market globally. In addition, Spain excels in digital connectivity, standing as one of the top performers within the European Union. It ranks third in the EU for overall connectivity and seventh in digital public services, both of which are well above the European average. This robust digital ecosystem, combined with its strong pharmaceutical market, makes Spain an attractive destination for investment and innovation in life sciences and technology.
The agri-food sector is a key driver of Spain’s economy, generating nearly €140 billion (£117 billion) in revenue and employing over 440,000 people, making it the nation’s largest manufacturing industry. Strong domestic demand and Spain’s strategic position as a leading exporter contribute to the sector’s success, broadening market reach and boosting revenue.
In summary, the longstanding historical ties, shared values, significant investment levels, thriving sectors, transition to a green economy, sophisticated consumer demand, and strategic geographic advantages make Spain an exceptional choice for business partnerships and investments with the United Kingdom.
The Team at the Spanish Chamber of Commerce is an expert on trade and business relations between Spain and the UK and, thanks to our network and expertise, we can help you navigate the market complexities and connect with the right partners for a successful entry into Spain. You can find the different services we offer here.
Post written by Candela Rodríguez Martín and Sophie Ziliukas
