By Denise Marray/Gulf Times Correspondent/London


Qatari investments in London, particularly in property and retail, are well-known and the capital remains an attractive prospect. But it is a city in the West Midlands that is currently catching the eye, not just of investors from the Gulf but from around the globe. Birmingham, famed for its advanced manufacturing sector, is currently seeing stronger growth than anywhere else in the UK. The massive HS2 rail project, the biggest railway building venture since Victorian times, is having a galvanising effect on the potential of the region.
Gulf Times spoke to Neil Rami, chief executive, Marketing Birmingham, to learn more. He explained: “In the last 12 months we have seen our Gross Value Added (GVA) rise by 6% against a UK rate of 1.6%. We are seeing stronger growth here than anywhere else in the country — at twice the level of London. The smart money is now recognising that London is no longer going to provide the same attractive returns as it has in recent years. It’s still a primary global market but there are fewer opportunities.”
He ran through some of the latest data: “Birmingham is leading the export led growth recovery of the UK. The West Midlands region has seen a 40% increase in exports and we are the only city region that has a trade surplus with China. The key driver for us is our advanced manufacturing sector; Jaguar-Landrover is helping to drive that charge. The IP, the heritage and the R&D remain here. Jaguar-Landrover will invest 5bn in its R&D in the UK next year. We are also seeing a surge around the supply chains within the automotive and aerospace sectors.”
Jerry Blackett, chief executive, Greater Birmingham Chambers of Commerce, pointed out the competitive edge of Birmingham: “The business and professional services sector is already the largest outside of London and we see that as having great growth potential.” HS2, he said, would cut down the journey time between Central London and Birmingham to just 39 minutes.
There has been a 57% increase in foreign direct investment, with the US accounting for 41%. Notably, there is growing interest from the Middle East in investing in property. Considering that 80,000 new homes need to be built by 2031, it’s not surprising that investors are seeing the potential.
JLL reports that overall investment volume in Birmingham increased 19% to £1.04bn last year, an 86% increase on the five-year average for the city.
PwC places Birmingham sixth in Europe in terms of international real estate attractiveness, ahead of London which was ranked tenth.
The HS2 rail project is acting as a catalyst for growth and regeneration throughout the region as evidenced in the surge of new business ventures.
“We are seeing a much more eclectic mix of start-up companies particularly in the technology/creative/life sciences areas. Birmingham is the most entrepreneurial UK city outside London. We had 18,500 new businesses last year representing an increase of 2,000 on the previous year which is significantly more than any other regional centre in the UK.
“Here in the West Midlands we have a population of 14mn people. We are a big region that offers long as well as short term opportunities,” said Rami.
Two new train stations are being built for HS2 — one right in the centre of Birmingham at Curzon Street, and one close to Birmingham Airport — the Interchange. Rami commented: “From a global perspective, suddenly Birmingham is becoming a much bigger place — 45mn people will be able to access the airport within an hour.”
The Birmingham Curzon Urban Regeneration Company will lead the redevelopment of the 141 hectare Curzon Street area surrounding Birmingham’s planned HS2 station. It is one of the biggest urban regeneration schemes in Britain. The Birmingham Curzon HS2 Masterplan outlines how stimulating the area’s economic growth could deliver 14,000 jobs, some 600,000 sqm of new employment floor space, more than 2,000 homes and up to £1.3bn a year to the local economy.
HS2 is expected to create some 26,000 jobs across the Greater Birmingham & Solihull area, and boost the West Midlands’ economy by £4bn per year.  Last week saw the launch of the £500mn plan to regenerate a 14 hectare site at the heart of the city centre. The Birmingham Smithfield development is expected to create over 100,000 sq. metres of new floor space, 1,000 new homes and 3,000 new jobs, adding £470mn GVA to the local economy and attracting millions more visitors to Birmingham.
The city’s Midland Metro tram system will be integrated into the site and bring Birmingham Smithfield within minutes of the proposed high speed rail (HS2) terminus at Curzon.
All this activity is raising the global profile of the region.
International tourism went up by 32% last year. Birmingham looks forward to welcoming more visitors from Qatar. As Rami put it: “We are keen to see direct connections from Birmingham into Doha.”