The United Kingdom and Australia have long been important trading and investment partners. Assured by a common language, similarities in culture, legal frameworks and business ‘norms’, UK and Australian companies continue to see the other country as an attractive place to invest in and expand their international operations.

Similarities in business environments reduce risks for investors and allow them instead to focus on the strength of market opportunities. Both countries offer large, open and flexible economies as well as an ideal location from which to access other opportunities in their regions, such as Europe and Asia.

Foreign direct investment (FDI) is an important stimulant for economic growth. By bringing new capital into a market it creates new jobs, often bringing new innovation and ways of working, and deepens global relations.

This report profiles 18 Australian and UK firms – from small startups to international conglomerates – that have successfully expanded to either country. Factors shaping these cross-country investments include:

• New business models in which government and business are cooperating to solve complex problems. Australian and UK firms are operating across borders in areas such as large-scale defence procurement, infrastructure provision and urban renewal
• The opportunity to leverage and participate in global supply chains. With more complex global operations, there are new opportunities for small and medium-sized enterprises to leverage particular expertise into global supply chains. Defence, advanced manufacturing (such as pharmaceuticals) and even global services like tourism and financial services are areas of particular traction
• Digital transformation and associated innovation allows companies to access new opportunities that may not exist in home markets.
• The desire to leverage the geographic position of the two markets. With the UK as a launch-pad into Europe and Australia into Asia, the position of the two countries allows close to 24-hour global coverage of markets.