As Brexit continues to take over almost all news sources, there has been some positive results occurring due to the uncertainty. Although very minor in the overall machine that is Brexit, Dublin has seen a huge influx of businesses and operations moving from London.
Both Tech and Finance firms have seen Dublin as a safe bastion in which to move and/or continue operations. This can only mean more business for Ireland and other
The uncertainty of Brexit negotiations, Ireland’s favourable tax system and existing business relationships have all been positive markers for Dublin.
We have already seen policy changes in companies such as Aviva and positive feedback from numerous tech firms asserting Dublin’s vital position in operations throughout Europe.
Almost 300 companies have moved staff and assets to Dublin and other financial hubs within the EU. Most of this has
A report by New Financial has shown the huge impact Brexit has had on the financial sector and of moves taken by companies to ensure a smooth transition no matter the political outcome of Brexit.
The Think Tank noted most of the firms were asset management firms, which would make sense as they would have international investors who may not deal solely with the UK. Other cities whcih also saw an influx of companies including Luxembourg and Amsterdam.
William Wright, founder of New Financial, said the hit to London was bigger than expected and would get worse.
“Business will continue to leak from London to the EU, with more activity being booked through local subsidiaries,” William Wright said.
“This will reduce the UK’s influence in European banking and finance, reduce tax receipts from the industry, and reduce financial services exports to the EU,” he added.
New Financial believe London will remain a key financial centre but that this may wan over time. This may
Dublin emerged as the definitive winner from the Survey as over 100 companies have made efforts to relocate here. This is far above other centers such as Amsterdam and Luxembourg.
“The report finds that banks have moved, or are moving, about £800 billion (€934 billion) in assets from the UK to the EU, which represents nearly 10 per cent of the entire UK banking system” reported the Irish Times.
Big insurance firms including Aviva and Phoenix Life have also transferred significant chunks of business to Dublin, moving £30 billion in assets.
Aviva also recently had policy changes which have allowed it to move most of its HQ operations form the UK to Ireland so existing systems remain the same and operations continue as normal. Irish Times
With so many strong financial hubs within the EU, some people may be questioning why Dublin?
There are of course the pragmatic reasons such as strengthening existing companies ties to the city, common language and favourable tax systems.
Dublin is also an existing home to a large number of tech companies which operate out of Dublins silicon docks. There is also a talented workforce pool, continued residential and commercial development and a high quality of life compared to some other cities in the EU.
A recent survey by consulting group Mercer found Dublin in the top 50 for ‘Quality of Living’ placing it ahead of cities such as Paris. The survey looked at things such as public transport, housing availability, culture etc.
The Irish capital was the highest ranked city for quality of living in both Ireland and the UK, followed by London (41), Edinburgh (45), Glasgow (48), Birmingham (49), Aberdeen (57), and Belfast (64) recorded the Independent.
Dublin scored high in relation to political stability, the environment and cultural inclusion. There were some areas of improvement noted in transportation and education, however, these were deemed minor in comparison to the overall survey.
Commenting on the results, Noel O’Connor, a consultant for Mercer in Ireland said: “Dublin continues to score highly for quality of living and safety in this year’s rankings. As the potential effects of Brexit continue to evolve it’s important that Dublin sustains its position as an attractive location for multinational organisations” noted the Independent.
Although this survey has no direct impact upon financial firms setting up in Ireland, it is a good indicator of some reasons why Dublin has been chosen over other locations throughout the EU.
With so much negative news emitting form Brexit, such announces New Financial and Mercer are welcome.