Foreign direct investment into London has risen significantly over the past year, according to the capital’s official foreign direct investment agency.

Between April and September 2007, Think London claims it saw a 12% rise in the number of businesses relocating to London from Europe, Asia Pacific or the Americas compared to the same period last year.

The latest European Cities Monitor 2007 has also ranked London as the top European city in which to base a business for the 18th year in a row. Paris took second place.

“London is the city attracting the largest number of foreign direct investment projects in Europe and second only to Shanghai worldwide,” said Michael Charlton, chief executive at Think London.

“Improving the city’s infrastructure, continuing to attract a good supply of high quality talent, and ensuring an attractive fiscal and ‘business friendly’ environment are crucial to London’s continued success.”