Tenerife Leads Canary Islands in High-Value Foreign Investment Shift
Tenerife has emerged as the leading destination for foreign investment in the Canary Islands, with new data revealing a significant shift towards high-value sectors like logistics, the blue economy, and innovation.
Foreign investment in the Canary Islands is changing, moving towards more valuable industries. Tenerife is becoming the top spot for international money, according to data shared this week at a meeting of the "Why Tenerife?" initiative. This group brings together several important island and regional bodies, including the Insular Directorate of External Action, Turismo de Tenerife, and the Port Authority of Santa Cruz de Tenerife, among others.
Since 1993, the Canary Islands have attracted a total of 3.682 billion euros in foreign investment. This represents 0.6% of Spain's total and places the islands 13th among Spanish regions. In recent years, this investment has grown faster, averaging 142 million euros annually over the last five years.
Tenerife is now home to 49% of all foreign-owned companies in the Canary Islands, employing over 13,500 people. These figures, from SABI (D&B) at the end of 2024, show Tenerife is the main hub for international businesses in the islands, ahead of Gran Canaria, which has 40%.
Lope Afonso, Vice President of the Cabildo de Tenerife, emphasized that the island provides a stable and legally secure environment, along with a growing competitive landscape for international investors. Key factors attracting investors include tax benefits from the Canary Islands Economic and Fiscal Regime (REF), global connections, available skilled workers, and a high quality of life.
While most foreign investment in the Canary Islands comes from Europe, the VII Ibero-American Forum held in Tenerife last November has boosted the island's role as a key location for the Ibero-American region. Investment projects are now moving beyond traditional tourism into more valuable sectors. These include logistics, the 'blue economy' (industries related to the ocean), agribusiness, advanced services, and innovation, such as film, TV, and video games. The aim is to attract funds that create stable jobs, share knowledge, and support sustainable economic growth.
When it comes to jobs, trade and hospitality remain the biggest creators, followed by administrative work, healthcare, and manufacturing. France, Germany, and the United Kingdom are the top countries for creating jobs linked to foreign investment, with the United States being the only non-European nation in the top ten investors. The Cabildo de Tenerife has restated its commitment to helping foreign companies set up and grow, strengthening the island's role as a natural link between Europe, Africa, and America.