Spain strengthens its position as a foreign investment destination in the Mediterranean region, according to a study by TEHA in partnership with Amazon

Mediterranean economies offer attractive opportunities for foreign direct investment, which is key to bolstering competitiveness and economic growth. How do economic policy, regulatory frameworks and infrastructure development influence investment decisions? To answer this question, The European House Ambrosetti (TEHA) partnered with Amazon to develop a study entitled "Investing in the Mediterranean," which analyzes the cases of Italy and Spain, two leading Mediterranean countries that share close geographical, cultural, and administrative ties.

The report was compiled by a committee of experts chaired by Enrico Letta, Dean of IE School of Politics, Economics and Global Affairs at IE University, together with Carlo Altomonte (SDA Bocconi), Patricia Gabaldón (Professor of Economics and Academic Director of the Bachelor in Economics at IE University) and Jordi Sevilla (economist and former Spanish Minister for Public Administration).

The conclusions of the research and policy recommendations are to be presented on September 5 at the TEHA Forum “Intelligence on the world, Europe, and Italy” to be held at Villa d'Este (Cernobbio, Italy). On October 9, the report will be presented at IE Tower, IE University's headquarters in Madrid. The event, chaired by Enrico Letta, is set to bring together leading experts who will be sharing their insights on the keys to attracting investment in the Mediterranean region.

This report draws on the Global Attractiveness Index, developed by TEHA, to assess a country's appeal and long-term sustainability. In 2025, the index shows that Spain has strengthened its position in terms of competitiveness and its ability to attract foreign direct investment (FDI). Since the pandemic, Spain's attractiveness has increased by 5.7 points (on a 1 to 100 scale), while Italy's has risen by 4.6 points. In 2020, Italy led by 2.2 points, but by 2024, this gap had halved.

The study examines the reasons behind this divergence and analyzes the factors that make the Spanish ecosystem more competitive. This advantage stems from a combination of economic, fiscal, infrastructure, and regulatory elements. To explore these dynamics in depth and compare two similar economies with markedly different performance levels, Amazon and TEHA Group launched a dedicated research project, backed by a high-level scientific committee:

“It is essential to analyze what makes countries attractive so we can foster an increasingly fertile ecosystem for international investment,” stated Valerio De Molli, Managing Partner and CEO of TEHA Group. "Our extensive experience in analyzing international attractiveness and competitiveness shows that large multinational companies play a key role in creating jobs and growing the economy, which is why attracting foreign investment should be a strategic priority for all countries. As such, TEHA's study, supported by Amazon, makes a key contribution to the broader debate on attractiveness policies."

According to Ruth Díaz, Country Manager for Amazon in Spain and Portugal: "The initial findings of this study highlight two key areas to strengthen the Spanish economy: leveraging digital transformation to attract foreign investment, and advancing toward a more stable, efficient, and harmonized regulatory framework at both national and European levels. Amazon's experience underscores the potential of this approach. Since our arrival in Spain in 2010, we have invested over €20 billion and contributed more than €17 billion to GDP. Spain has provided us with exceptional talent and significant growth opportunities. In return, we have contributed to the country's economic development through close collaboration with citizens, businesses, and organizations. This study reflects our ongoing commitment to Spain. It aims to identify new pathways to consolidate the country as a prime destination for foreign investment, while accelerating the digital transformation of its business ecosystem.”

GDP, investment and governance

The study focuses on nine areas: macroeconomic framework; physical and digital infrastructure; administrative context; regulatory system, taxation and incentives; justice system; labor market; education and training; talent attraction policies; and quality of life.

Four conclusions can be drawn from the preliminary results:

• Between 2010 and 2024, Spain's GDP grew by +18.8%, compared to +6.2% in Italy and +20.8% for the EU average. This performance was driven in part by stronger private consumption (+12.5% in Spain compared to +2.9% in Italy) and by real wage increases (+4.9% in Spain compared to -3.3% in Italy).
  Post-pandemic recovery has set Spain and Italy on two distinct paths. In 2022, following a strong rebound in 2021, Italy’s economy grew by 4.8%, while the Spanish economy grew by 6.2%. In 2023, the gap widened, with growth rates of 0.7% in Italy and 2.7% in Spain, and again in 2024, with 0.7% and 3.2%, respectively. Forecasts for 2025 suggest continued divergence, with projected growth of 0.9% for Italy and 2% for Spain. These differences are reflected across several economic indicators, including employment, where Spain has recorded average growth rates one percentage point higher than Italy’s since 2022. Spain’s positive momentum is also evident in rising investment levels.
• In Spain, 856 greenfield foreign direct investment projects had been launched up to 2024, creating 72,416 jobs. Greenfield foreign direct investment projects refer to initiatives in which a company establishes entirely new operations in a host country, building facilities from the ground up. In contrast, Italy registered less than half that number, with just 303 similar projects, resulting in weaker job creation (40,006).
• Spain outperforms Italy in almost all digital indicators analyzed by the European Commission: fixed very high capacity network coverage (93.6% in Spain vs. 59.3% in Italy), cross-border digital public services for businesses (Spain's score is 82.5 compared to Italy's 57.9) and digital public services (91.0 vs. 76.3).
• The Italian system, on the other hand, is more uniform and less fragmented across different levels of government. Some indicators suggest that Italy offers a more efficient bureaucratic environment. For example, Spanish SMEs spend an average of 27.7 hours per month on administrative procedures, compared to 26.1 hours in Italy.