The Luxembourgish state: a key player in a dynamic economy
Luxembourg stands out as an economic hub where the state plays a significant and strategic role in fostering growth and stability.
With direct and indirect participations valued at nearly 2 billion euros, the Luxembourgish State is an active shareholder in 45 private sector companies and numerous public entities.
This extensive involvement underscores a commitment to robust economic development and a reliable environment for businesses seeking office and warehouse space.
Strategic stakes in publicly traded companies
The State's portfolio includes substantial holdings in major publicly traded companies, demonstrating its engagement with both national and international economic pillars. Notable examples include shares in industrial giants like ArcelorMittal (1.52%) and Aperam (0.62%), alongside financial powerhouses such as BNP Paribas (1.12%).
Furthermore, the State holds significant stakes in critical infrastructure and technology firms like SES (10.83% of B shares) and Société Electrique de l’Our (SEO) (40.12% of A shares). These investments signal a strong, diversified economic fabric, providing a stable backdrop for businesses to thrive.
Investing in unlisted innovators and essential services
Beyond the public markets, the Luxembourgish State actively supports the national economy through stakes in 40 unlisted private companies. This includes vital logistics and transport companies like Cargolux (8.32%), energy providers such as Encevo (28%), key financial infrastructure like the Bourse (21.20%), and essential gateway services like lux-Airport (100%).
These participations ensure the continuous development and stability of core services and infrastructure, which are crucial for any business requiring reliable connectivity and operational support, whether for office premises or warehouse distribution centers.
Foundational public entities: Post, CFL and Spuerkeess
The total value of state participations rises close to two billion euros when including 100% ownership in foundational public entities like Post, CFL (the national railway company), and Spuerkeess (the state bank).
These wholly-owned enterprises underpin the nation's public services and infrastructure, offering unparalleled reliability and strategic direction for the overall economy. Such deep state involvement translates into a predictable and well-supported operational environment for companies locating their businesses in Luxembourg.
The "Why": strategic vision for economic stability and growth
Finance Minister Gilles Roth has clarified that these participations are primarily for strategic reasons, not purely financial ones. The State's objective is to support key economic sectors, ensure the provision of essential public services, and drive infrastructure development. Some investments, particularly in the banking sector (e.g., BNP Paribas, BGL BNP Paribas), were critical responses to the 2007/2008 financial crisis, reinforcing economic resilience.
This strategic foresight guarantees a stable and forward-thinking environment, vital for businesses planning long-term growth and requiring robust supporting infrastructure for their office and warehouse needs.
Growing state participation: a sign of confidence
The increasing number of state participations since 2000, notably in companies like Luxair where the direct stake rose from 23.11% to 39.05%, demonstrates the State's ongoing commitment to its economy. This trend signifies a proactive and confident approach to economic management, which translates into an exceptionally secure and reliable landscape for businesses considering Luxembourg for their next office, industrial, or warehouse location.
What this means for your business looking for space in Luxembourg
The Luxembourgish State's profound and strategic involvement in the economy creates a uniquely stable and supportive business environment. For companies seeking office or warehouse space, this translates into several key advantages: a robust infrastructure backed by state investment, reliable public services, access to strategically supported key sectors, and governmental commitment to long-term economic stability.
Luxembourg’s proactive state engagement minimizes operational risks and maximizes growth opportunities, making it an ideal location for your business expansion and real estate investments.
Source: virgule.lu
