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UK tops infrastructure investment poll

A new poll of infrastructure investment attractiveness ranks the UK as number one, but highlights the need to deliver on pipeline promises.

The UK has been identified as the most attractive of 25 global locations for infrastructure investment by law firm Nabarro in its latest investment ranking report. Leading on scores for sustainability and innovation, the UK also achieved one of the highest scores for private participation, had comparatively strong credit and stability ratings and is considered to have a high degree of national stability.

 "It is paramount that the UK also identifies and secures a good pipeline for investors. Without it, the Nabarro Infrastructure Index shows that the US and Canada offer equally attractive conditions for infrastructure investment."

Lord Adonis, chair, NIC

“The improvements in the UK’s credit and stability scores, the tax environment, and the levels of involvement in private participation are all positive indicators," said Kristy Duane, partner and head of infrastructure at Nabarro. "However, it is important that the UK does not become complacent despite these strong economic conditions. The gap in its lead in sustainability and innovation has narrowed significantly and we are some way behind in other categories like tax environment.”

Newly appointed chair of the National Infrastructure Commission Lord Andrew Adonis said that the index highlighted the threat from rising markets. “It is great to see the UK doing so well in this year’s Index. It is a credit to the positive conditions for infrastructure investment created by the previous and current governments. However, it is paramount that the UK also identifies and secures a good pipeline for investors. Without it, the Nabarro Infrastructure Index shows that the US and Canada offer equally attractive conditions for infrastructure investment which could threaten the UK’s number one position," he said.

“A pipeline is no good, if it is just a pipe dream. Real opportunities that are seen through to completion are what is needed for investment,” added Duane.

Devolved decision making powers were also considered to be important with four of the top five countries having such structures in place. Other markets to perform strongly included the UAE, Spain and Italy which each rose seven places in the index compared to 2012. The Philippines gained five places. China, India and France all slipped down the index.

 

If you would like to contact Bernadette Ballantyne about this, or any other story, please email bernadette.ballantyne@infrastructure-intelligence.com:2016-1.