The Luxembourg government on Monday unveiled its 2030 roadmap for developing the financial sector, placing financial innovation at the centre of its ambitions to remain a leading global financial hub. Climbing the international financial-sector value chain beyond ‘fund services’ now is officially defined as an ambition.
The government’s roadmap, Ambitions 2030: Shaping Finance for our Future, sets out a vision for harnessing advanced technologies, fostering sustainability, and strengthening the Grand Duchy’s role as Europe’s gateway for global capital.
The strategy outlines how Luxembourg plans to harness advanced technologies, foster sustainability, and strengthen its role as Europe’s gateway for global capital. It also seeks to further expand the grandy duchy as a leading global wealth management hub.
International Market Volume in wealth management
(In US$ trillion and % of total IMV)
“Luxembourg’s ambition is to create a financial ecosystem where innovation thrives, sustainability is paramount, and businesses and investors have the confidence to grow and succeed in an increasingly complex world,” said Finance Minister Gilles Roth in a statement.
“This shift reflects our determination to move up the value chain by offering services that deliver real benefits to clients and society.”
More front-office roles
Climbing the value chain now is an official ambition, aiming to attract additional middle- and front-office roles in Luxembourg as a hub for private equity, real estate, venture capital, infrastructure and debt funds, according to the vision document. Moving up the value chain is also about “diversifying into high-growth financial services and pioneering digital finance innovations” and about leveraging “the strength of its fund valuation service”.
“This shift reflects our determination to move up the value chain by offering services that deliver real benefits to clients and society.”
Gilles Roth, Luxembourg Finance Minister
Luxembourg in recent decades has developed into a leader in cross-border fund and asset management services, leveraging EU regulatory frameworks to establish itself as a hub for cross-border financial flows. Its multilingual, multi-jurisdictional ecosystem has enabled it to attract global asset managers seeking access to European markets, and its expertise in fund structuring has earned it global recognition.
However, Luxembourg’s financial success has been largely built during recent decades on operational and administrative functions often referred to as «fund services.» While these activities form the backbone of the financial ecosystem, strategic investment decisions—such as portfolio management and asset allocation—are typically made in other financial centres like London, Paris, and Frankfurt.
Beyond fund administration
This distinction between Luxembourg’s operational strengths and the decision-making roles played elsewhere has prompted calls for the country to evolve into a more holistic financial centre. Critics have noted the need to expand beyond its reputation as a fund administration hub and to attract more front-office activities that drive higher-value financial decisions. That call is now being addressed.
The centre-right government, led by Prime Minister Luc Frieden, who took office in 2023, already has been taking steps to boost Luxembourg’s financial ecosystem. Last year, it launched a ten-point action plan aimed at enhancing Luxembourg’s appeal as a destination for financial innovation and talent. Key measures included a new blockchain law to facilitate innovation in investment funds and a revised bonus regime to attract international professionals.
The Ambitions 2030 roadmap builds on these efforts, providing a comprehensive vision for where Luxembourg’s financial ecosystem is heading. By prioritising advanced technologies like blockchain, artificial intelligence, and distributed ledger technology (DLT), the government aims to attract high-value activities such as portfolio management, private equity advisory, and the development of cutting-edge financial products.
Wealth management market share rising
Luxembourg also wants to further boost its position among global wealth management hubs, according to the strategy. Its growing prominence in this market is underscored by its rising International Market Volume (IMV) share, which increased from 4.2 percent in 2020 to 4.6 percent in 2023, placing it “alongside the world’s most attractive wealth management hubs” such as the UK, US and Switzerland.
“Luxembourg’s commitment to maintaining a forward-thinking regulatory framework has been central to attracting global wealth,“ said the strategy, which describes the grand duchy’s financial ecosystem as “uniquely designed to meet the complex needs of clients with international and multigenerational objectives, providing peace of mind even in volatile times.”
The strategy also highlights Luxembourg’s progress in private assets and exchange-traded funds (ETFs). The financial centre has gained some ground in active ETFs, a market still dominated by Ireland; supervisor CSSF has been implementing a transparency regime; and it remains a key domicile for European Long-Term Investment Funds (Eltifs), which are expected to see significant growth under the EU’s revised Eltif 2.0 framework.
Further reading on Investment Officer Luxembourg:
- CSSF flags 2025 upgrade of valuation practices in Luxembourg
- Luxembourg proposes groundbreaking blockchain law for investment funds
- Lord Mayor of the City of London: ‘We need Luxembourg’
