Number of foreign banks in Luxembourg in 2020
Banking is but one of many activities for Luxembourg’s financial sector
The Grand Duchy of Luxembourg focuses on three financial areas: banking, investment funds and insurance. Investment funds, for example, were worth almost 8,200 percent of the country’s GDP in 2019, with the Grand Duchy’s fund industry holding almost 4.7 trillion euros worth of net assets under management (AUM) in February 2020. When it comes to the number of insurance companies, Luxembourg had more than both Belgium and the Netherlands combined.
Chinese finance is but one example
Luxembourg’s financial sector tries to diversify its activities and sometimes to target specific audiences. For example, Luxembourg was the first European country to issue a sovereign sukuk (a financial certificate that complies with Islamic religious law) on its own thanks to the country's legal structures.