Japanese companies operating in Spain hold favorable expectations regarding the evolution of their businesses in the country. Nine out of ten foresee maintaining or increasing their investments, while more than 70% are confident in improving their activities in the short term, according to the report Business Climate Spain-Japan, prepared by the Japan-Spain Business Circle (CEJE) and disseminated by ICEX-Invest in Spain.
The data reflects an economic relationship that has gained significance over the past years, extending well beyond the major corporate operations that occasionally make headlines. Currently, there are around 400 Japanese companies with a stable presence in Spain or participating in Spanish firms, after their number has grown by more than 70% in a decade.
The assessments made by the executives themselves also point in that direction. Sixty-seven percent of those surveyed view their company’s evolution in Spain over the past year positively, and expectations improve when they are asked about the immediate future. More than 70% anticipate positive growth for their business, and 90% expect to maintain or increase their investments.
Japan, the leading Asian investor in Spain
The Japanese business presence is backed by significant accumulated capital flows. Between 2010 and 2023, Japan was the main Asian investor in Spain, with nearly 9.2 billion euros. This figure exceeds investment from Chinese companies during the same period by 30%, according to data collected by CEJE.
Investment is not concentrated in a single sector. Prominent sectors with Japanese capital include electric and renewable energy, automotive, IT, and the chemical industry, the latter having an especially relevant historical trajectory within the business relations between both countries.
Moreover, these are sectors that play an important role in the transformational processes currently affecting the European economy. The energy transition, the evolution of the automotive industry, and digitalization are altering investment decisions for many multinational companies, and Japanese firms have a significant presence in several of these activities.
The report also attributes part of the consolidation of these investments to characteristics inherent in the Japanese business model, where quality, commitment, and a long-term vision typically weigh heavily in international establishment decisions.
Spain as a platform within Europe
For Japanese companies, Spain also offers a strategic position from which to operate in the European market. CEJE considers the country a strategic partner for Japan within the European Union and highlights its attractions, including talent availability, infrastructure, and growth opportunities in sectors with promising future prospects.
This assessment helps explain why many established companies are not only considering maintaining their position but also continuing to invest. This is a relevant nuance: the 90% figure comes from companies familiar with the Spanish market, many of which have years of operations in the country.
The economic relations between Spain and Japan start from different business profiles, yet with areas of complementarity. The Japanese industry maintains significant positions in automotive, technology, chemicals, electronics, and energy, while the Spanish economy has developed notable capabilities over recent decades in renewable energy, infrastructure, mobility, agri-food, and other sectors with international potential.
The CEJE report points toward a new phase of expansion of Japanese business presence and identifies innovation, sustainability, and bilateral cooperation as factors that could support this growth in the coming years.
The nearly 9.2 billion euros invested between 2010 and 2023, along with approximately 400 companies operating in Spain, indicate that the economic relationship between the two countries already has a substantial foundation. However, the most significant finding of the study may be the forward-looking aspect: nine out of ten Japanese companies surveyed do not plan to reduce their exposure to the Spanish market, but rather to maintain it or continue growing.
