Specialist locations title Site Selection named the city the second-best place in Western Europe to invest, behind only Barcelona, after it leapfrogged London in the rankings.
The Best to Invest rankings position destinations around the world according to their success at attracting investment projects and after leaping eight places from 10th in 2012, the city was ranked ahead of Dublin (third), Madrid (fourth) and London (fifth).
Site Selection’s Best to Invest list focuses on factors including growth in new facilities, capital investment, economic strength and infrastructure.
Wouter Schuitemaker, investment director at the city’s official inward investment programme Business Birmingham, said the rankings confirm Birmingham’s status as one of the most attractive places in the world for firms to set up.
He added “The rankings are a testament to the close collaboration of the city’s business community in providing the best possible package for potential investors.
“Our investment strategy is already reaping dividends – the city created or safeguarded more than 4,000 jobs in 2012/13, boosting the region’s economy by £174 million.
“It is imperative that we build on this global recognition and continue to hold our own over our national and international counterparts. With significant infrastructure and transport projects – including New Street station – close to completion, and by strengthening our focus on our key sectors and growth markets, we are confident that we can remain as the country’s most popular investment choice.”
Birmingham secured 41 inward investment projects – the highest on record – during 2012/13, a 52 per cent rise against a national increase of 11 per cent.
The city is home to more than 32,000 companies, including nearly 700 international firms.