Luxembourg is a EU member state with an outsized role in global finance. Much like Singapore and Hong Kong (and other hubs in the APAC region), Luxembourg is a specialist cross-border financial center with a strong rule of law. However, Luxembourg is fully embedded in the EU and eurozone, offering direct access to European investors and the EU cross-border marketing passport.
It combines political stability, a AAA credit rating, a highly international workforce and the world’s highest GDP per capita. The economy is driven mostly by the financial sector, and remains resilient, supported by strong public finances and low public debt. For APAC investors, Luxembourg offers a gateway to the EU single market with a business-friendly environment and a deep pool of multilingual talent.
The country is the world’s leading cross-border investment hub. Its fund vehicles and capital markets infrastructure are widely used by asset managers and institutional investors from Asia to access European investors, raise capital internationally and structure multi-jurisdictional strategies. Luxembourg’s legal framework is built around investor protection and regulatory predictability, attributes that are particularly valued by sophisticated APAC institutions and family offices looking to diversify out of their home markets.
What are some of the advantages Luxembourg offers APAC clients looking to broaden their horizons?