April 4--The United Kingdom was the number one destination in Europe for foreign investment during 2003, according to new report. The IBM's Global Investment 2003 report indicates that investors were attracted to the UK because of competitive cost levels, flexible labor laws, and its native English-speaking workforce. It is estimated that 55,000 jobs were created in the UK due to overseas investment. The report's finding were highlighted at the UK site, MoneyNews.com.

This is good news for Western Europe, which has lost some investors in recent years to the Central Eastern European countries, particularly those new EU members or those likely to join the EU in the near term. Fifteen percent of all new jobs in Europe were created in the UK, putting Britain ahead of the Czech Republic, Germany and Russia in terms of favored destinations for foreign capital.

Globally, the United States remains the top destination for foreign investors. Britain was ranked fourth globally, in the 2005 AFIRE annual survey of foreign investors in terms of best country for capital appreciation. However, the UK ranked second (to the U.S.) when AFIRE members were asked which which country provides the most stable and secure environment for real estate investments.

London was ranked the top global city for real estate investment in the AFIRE survey, beating out Washington, D.C. and New York City, which ranked second and third, respectively.