London 'well placed' to continue investment surge

According to the city's official Foreign Direct Investment agency London will continue attracting inward investment in the coming years, despite the credit crunch.

Speaking to the Financial Times, Think London Chief Executive Michael Charlton noted that foreign investment in the capital has risen to a record high.

He documented 178 international companies which set up or expanded business in London in the year to March, contributing £710 million to the city's economy.

We have a strategy in place to leverage this by undertaking a number of initiatives during and after the games in Beijing

Michael Charlton

Chief Executive

Think London

Mr Charlton acknowledged that the coming months will prove "challenging", but pointed to the 2012 Olympic Games as a significant draw for foreign investors.

"We have a strategy in place to leverage this by undertaking a number of initiatives during and after the games in Beijing," he remarked.

Mr Charlton went on to single out "well funded" Japanese firms as potential investors in the capital: "[They] do not need to fund their investment through debt.”

"They see the current climate as an opportunity for them" he added.

Some of the recently-arrived enterprises outlined by the agency boss included US online network company LinkedIn and Finnish firm Nokia, which established a design studio on London's Great Pulteney Street last Autumn.