United States largest international investor in the Netherlands
The United States has been the largest net international investor in the Netherlands for years, balance of payments figures from DNB show. This is mainly due to investments by US multinationals in Dutch subsidiaries. Much of these investments flow out of the Netherlands to business units in other countries.
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By the end of 2024, US investments in the Netherlands stood at €1,822 billion. Conversely, the Netherlands invested €1,496 billion in the US. The net external asset balance between the Netherlands and the United States was therefore -€326 billion. External assets provide insight into the international interconnectedness of business and capital markets, and include direct investment and securities holdings.
Source: DNB statistics
At De Nederlandsche Bank, we independently compile statistics on the Dutch financial sector and economy. This article is based on these statistics. More information on our statistics and all dashboards can be found on our Statistics homepage.
Much of the money invested from the United States does not stay in the Netherlands, however. More than half of it consists of direct investments by multinationals in Dutch subsidiaries. Through these subsidiaries, a part of this money then flows to business units in other countries, as investments from the Netherlands.
Other large net investors in the Netherlands are Luxembourg (-€242 billion) and Germany (-€156 billion). Compared to the United States, investments from these countries more often involve investments in the form of securities holdings, such as shares in Dutch listed companies. Luxembourg is home to many internationally operating investment funds.
Dutch international investment position grows by over €100 billion thanks to securities holdings
At the end of 2024, the Netherlands' net external assets stood at €676 billion, up €111 billion from a year earlier. The underlying Dutch external investments (assets) amounted to €10,079 billion. Conversely, investment from abroad in the Netherlands (liabilities) amounted to € 9,403 billion.
The increase in external assets in 2024 is mainly due to financial transactions and exchange rate movements. Financial transactions include, for example, loans or the purchase and sale of shares or debt securities. In particular, the contribution of securities holdings to the investment position is increasing, by €116 billion net. Specifically, this means the Netherlands now owns many more foreign shares and debt securities than a year earlier. The value of Dutch-held foreign securities increased by over 10%.
Nevertheless, securities holdings as a whole still make a large negative contribution to the external assets, worth -€551 billion. The largest positive share of net external assets comes from the balance of direct investments (€795 billion).
What is the difference between direct investment and portfolio investment?
The net external asset balance indicates the difference between investment from the Netherlands abroad and investment from abroad in the Netherlands. A distinction is made between direct investment and portfolio investment. Foreign direct investment is investment between the Netherlands and foreign countries aimed at acquiring a lasting interest in a company. A lasting interest implies (i) a long-term relationship between the investor and the investee company and (ii) a degree of control by the investor over the policies pursued. In practical terms, this means that the investor must hold at least 10% of the investee company's voting rights. If the interest in the
More information
- Table 12.1: Balance of payments from 2008Q4 onwards
- Table 12.12: Net external assets from 2008Q4 onwards
- Dashboard: Balance of Payments
- Dashboard: External assets