8/10/2019 Global Cities Investment Monitor 2010
1/32
THE NEW RANKINGS, TRENDS AND CRITERIA
GLOBAL CITIESINVESTMENT MONITOR 2010
Greater Paris Investment Agency
8/10/2019 Global Cities Investment Monitor 2010
2/32
8/10/2019 Global Cities Investment Monitor 2010
3/32
Greater Paris Investment Agency
GLOBAL CITIES INVESTMENT MONITOR 2010BY THE GREATER PARIS INVESTMENT AGENCY AND KPMG3
1. The crisis has inverted the hierarchy in investment criteria.Political stability and juridical security have become key criteria wheninvestors choose locations, ahead of economic growth.
2. Major Asian cities gure prominently despite the crisis:while Shanghai, Beijing and Mumbai have suffered from the downturn,Hong Kong strengthens its position. Furthermore, all four are now top competitors
on strategic functions and not anymore mere manpower sources.3. American cities are absent from the top rankings
because no single city, not even New York, attracts a large share of foreign investments.However, the American hierarchy is changing, with So Paulo gaining steadily ground.
4. Europe is the rst source of international investments and their rst destinationin the world. Re ecting this, only London and Paris gure in the top ve rankings,
with few serious challengers. In the meantime, the other major European Cities seem outpaced.5. Paris has a very stable position over the last ve years.
Its market share increases in strategic functions and research centers.The French Capital stays a major place for investors in consumers goodsand the software industry.
KEY POINTS
8/10/2019 Global Cities Investment Monitor 2010
4/32
COMPANIES BY COUNTRY OF ORIGIN POSITION OF THE INTERVIEWEE TURNOVER (in euros) BUSINESS ACTIVITY
50%
38%
GreaterEurope
America
BRIC5%
Asia6%
GulfCountries
1%
6% Other
6%Head Ofcer
/Manager in charge of
development / Investme
nt12%
CEO / President / Manag
ing /
Director / Executive Dire
ctor
39%Marketing / Sale
s /
Communication Directo
r / Manager
40%Financial Director /Manager
35%27%
36%2%
Less than500 millions
NR
Between500 millionsand 5 billions
More than 5 billions
34%24%
18%24%
Services
IT
HeavyIndustry
ConsumerGoods
Greater Paris Investment Agency
GLOBAL CITIES INVESTMENT MONITOR 2010BY THE GREATER PARIS INVESTMENT AGENCY AND KPMG4
PERCEPTION
METHODOLOGYA SCIENTIFIC APPROACH BASED ON A REPRESENTATIVE SAMPLE
A poll conducted by
Representative sample of512 companies with internationalbusiness settlements
25 countries
3 criteria:- Headquarter location- Industry- Turnover
Phone interviews with global business leaders (CEO, managing director, administrative and nancialmanager, sales manager, head of internationalinvestment)
From December 2009 to January 2010
opinion wayThe innovative research compagny
Gulf CountriesSaudi Arabia ................. 15United Arab Emirates ... 13Koweit and Qatar .......... 16Total ............................. 44
Northern AmericaUnited States ................ 58Canada .......................... 23Mexico .......................... 14Total ............................. 95
BRIC
China............................. 16Hong Kong .................... 16Russia ........................... 16India .............................. 23Brazil ............................ 17Total ............................. 88
AsiaJapan ............................ 34South Korea .................. 28Singapore ..................... 28Total ............................. 90
EuropeGermany ....................... 25France ........................... 22United Kingdom ............ 19Italy ............................... 24Spain ............................. 22Netherlands .................. 13Turkey................. ............ 9Belgium ................. ......... 9Switzerland .................. 34Sweden ......................... 10
Austria ................... ......... 8Total ........................... 195
8/10/2019 Global Cities Investment Monitor 2010
5/32
1rst trimester2009
2nd trimester2009
3rd trimester2009
4th trimester2008
Barcelona
Istanbul
Stockholm
Brussels
Berlin
Moscow
Mumbai
Tokyo
Shanghai
Hong Kong
So Paulo
Mexico
San Francisco
Paris
FrankfurtAmsterdam
London
Madrid
New York
Montreal
SeoulBei jing
2009The annual period begins with the fourth trimester:
Greater Paris Investment Agency
GLOBAL CITIES INVESTMENT MONITOR 2010BY THE GREATER PARIS INVESTMENT AGENCY AND KPMG5
22 Global CitiesCombined selection criteria :
1. GDP (the study selects only the largest cities in termsof GDP).
2. Attractiveness (among the largest cities in termsof GDP, only those largely open to internationalinvestments are considered).
Inversely, very open but relatively modest economieslike Singapore or Dubai are not considered, likerelatively large but closed ones, like Buenos Aires.The cities are distributed among the continentsaccording to the zones relative weight in internationalinvestments.
REALITY
METHODOLOGYAN OBJECTIVE FOCUS ON THE LATEST INVESTMENTS
Database : fDI Markets FinancialTimes, from January 200365 000 international investment projects
28 000 business all over the world 8 000 information sources: newspapers,magazines, associations, websites
8/10/2019 Global Cities Investment Monitor 2010
6/32
Greater Paris Investment Agency
GLOBAL CITIES INVESTMENT MONITOR 2010BY THE GREATER PARIS INVESTMENT AGENCY AND KPMG6
SUMMARY
The Greater Paris Investment Agency .......................................................................................................................................................................................................................................................................................................................... P2
Key points ............................................................................................................................................................................................................................................................................................................................................................................................................. P3Methodology: a scientic approach based on a representative sample ................................................................................................................................................................................................................... P4Methodology: an objective focus on the latest investments ....................................................................................................................................................................................................................................................... P5Summary ..................................................................................................................................................................................................................................................................................................................................................................................................................... P6
Perceptions benchmarks .......................................................................................................................................................................................................................................................................................................................................... P7Paris in top 3 .......................................................................................................................................................................................................................................................................................................................................................................................................... P8Image: a global consensus on top cities ..................................................................................................................................................................................................................................................................................................................... P9Attractiveness: the rise of new Asian actors .................................................................................................................................................................................................................................................................................................... P10Attractiveness: widely different regional perceptions ...................................................................................................................................................................................................................................................................... P11
Investment criteria turned upside-down by the crisis ......................................................................................................................................................................................................................................................................
P12Investors seek stability in mature economies, growth in emerging countries ........................................................................................................................................................................................... P13A trend towards Asian cities ....................................................................................................................................................................................................................................................................................................................................................... P14
Reality benchmarks ............................................................................................................................................................................................................................................................................................................................................................... P15Europe: the leading investor in the world regions ................................................................................................................................................................................................................................................................................... P16Europe: the main investor in the Global Cities ............................................................................................................................................................................................................................................................................................... P17Europe: the most attractive continent in the world ................................................................................................................................................................................................................................................................................ P18Advantage to economic concentration ........................................................................................................................................................................................................................................................................................................................ P19The 5 New Leaders .................................................................................................................................................................................................................................................................................................................................................................................... P203 Chinese cities join the top competitors ................................................................................................................................................................................................................................................................................................................ P21
Investors seek refuge values .................................................................................................................................................................................................................................................................................................................................................... P22 Paris versus China in the R&D competition ........................................................................................................................................................................................................................ P23 A diversied economy: advantage to Paris ........................................................................................................................................................................................................................................................................................................ P24Paris at the top with Shanghai for manufacturing investments ......................................................................................................................................................................................................................................... P25Impact of the crisis .................................................................................................................................................................................................................................................................................................................................................................................... P26
Report 2005 / 2009: real top global cities ................................................................................................................................................................................................................................................................. P27A new global ranking ............................................................................................................................................................................................................................................................................................................................................................................. P28
China and Europe compete for leadership ........................................................................................................................................................................................................................................................................................................... P29Global Cities: a competition more open than ever ................................................................................................................................................................................................................................................................................... P30The Greater Paris Investment Agency. Our membership: global & major companies .................................................................................................................................................................... P31
8/10/2019 Global Cities Investment Monitor 2010
7/32
GLOBAL CITIES INVESTMENT MONITOR 2010PERCEPTIONS BENCHMARKS
Chrysler Building(318m)
New York
Gherkin Tower(180m)London
Burj al Arab(321m)Dubai
La Dfense(111m)Paris
World FinancialCenter(492m)
Shanghai
Bank of China(226m)
Hong Kong
Greater Paris Investment Agency
8/10/2019 Global Cities Investment Monitor 2010
8/32
4 1
New York
4 2
London
3 5
Paris 12
Mumbai
9
Tokyo
7
Sydney
1 4
Shanghai8
Bei jing
1 2
Hong Kong
1 1
Singapore
L o n d
o n
N e w
Y o r k
P a r i s
S h a n g h a i
H o n g
K o n g
M u m b a i
S i n g
a p o r e
T o k y
o
B e i j i n g
S y d n
e y
B e r l i n
L o s A n g e l e s
D u b a i
M a d r i d
B a r c e l o n a
C h i c
a g o
F r a n k f
u r t
M o n t r e a l
M o s c o w
Z u r i c h
4 2 % 4 1 %
3 5 %
1 4 %1 2 % 12 % 1 1 %
9 % 8 % 7 % 6 % 6% 6% 5 % 5% 5%3 % 3 % 3% 3%
TOP 10
Greater Paris Investment Agency
8GLOBAL CITIES INVESTMENT MONITOR 2010 BY THE GREATER PARIS INVESTMENT AGENCY AND KPMG
According to you, which 3 cities or major world capitals have the best overall image?
PARIS IN TOP 3
The image is probably the asset that is built over thelongest time-span. Paris, London and New York aretraditional leaders. They embody at best what a globalcity should be.
But the situation is rapidly changing in Asia, whereTokyo and Singapore are now facing strong competitionfrom main Chinese and Indian metropolises.
If a city joins the trio in the next decade, it will be in thatzone. Other European and American cities are nowseriously distanced.
CITIES GLOBAL IMAGE
China is seen today as a sexy place forinvestment. Indian Energy Group, Dubai
8/10/2019 Global Cities Investment Monitor 2010
9/32
New York
London
Paris
Mumbai
Shanghai
AMERICATop 5
London
Paris
New York
Shanghai
Hong Kong
EUROPETop 5
Hong Kong
London
Paris
New York
Shanghai
BRICTop 5
Dubai
London
Mumbai
Abu Dhabi
Singapore
GULF COUNTRIES
Top 5
New YorkLondon
Tokyo
Shanghai
Singapore
ASIATop 5
Greater Paris Investment Agency
9GLOBAL CITIES INVESTMENT MONITOR 2010 BY THE GREATER PARIS INVESTMENT AGENCY AND KPMG
IMAGE: A GLOBAL CONSENSUSON TOP CITIES
According to you, which 3 cities or major world capitals have the best overall image?
Operating a regional breakdown allows a more preciseanalysis.
First-rank Global Cities have a global image.They are identi ed as leading metropolises whereresources meet opportunities in all parts of the world.
The traditional leaders are present in the top 5 cities
mentioned by investors from America, Europe andBRIC countries.
Shanghai is clearly very well placed to join the handfulof traditional leaders, replacing Tokyo. Next amongAsian cities come Hong Kong and Mumbai.
Some cities have a very strong image regionally whichis not equally perceived in other regions: Dubai, AbuDhabi or Tokyo.
CITIES REGIONAL IMAGE
8/10/2019 Global Cities Investment Monitor 2010
10/32
2 6
New York
1 8
London
6
Bangkok
6
Berlin
1 8
Shanghai1 1
Bei jing 8
Hong Kong
7
Chicago1 5
Mumbai
8
Paris
Greater Paris Investment Agency
10GLOBAL CITIES INVESTMENT MONITOR 2010 BY THE GREATER PARIS INVESTMENT AGENCY AND KPMG
ATTRACTIVENESS:THE RISE OF NEW ASIAN ACTORS
According to you, which 2 cities or major world capitals are currently the most attractive locationfor setting up business generally (either your business or other businesses)?
The citys image is a strong component of its perceivedattractiveness, which explains the top rankings of NewYork, London and Paris. Clearly, anticipated growthalso enters into calculations, which allows Shanghai,Mumbai or Beijings attractiveness to be better rankedthan their image.
CITIES GLOBAL ATTRACTIVENESS
New York is seen internationally as the accessdoor for the United States markets.Commercial Bank, Madrid
In the general perception, Mumbai is juststanding for the Indian market.Automobile supplier, New York
In Paris, people speak French.Indian Energy Group, Dubai
New York ................................................. 26%London ...................................................... 18%Shanghai .................................................. 18%Mumbai ..................................................... 15%Beijing ........................................................ 11%Paris ............................................................... 8%Hong Kong ................................................. 8%Chicago ........................................................ 7%Bangkok ...................................................... 6%
Berlin ............................................................ 6%
Moscow ........................................................ 5%Barcelona ................................................... 5%New Delhi ................................................... 5%Los Angeles .............................................. 5%Singapore ................................................... 5%Barcelona ................................................... 5%Tokyo ............................................................. 5%
Abu Dhabi ................................................... 4%Dubai .............................................................. 4%Toronto ......................................................... 3%Frankfurt .................................................... 3%
TOP 10 11-17 18-21
8/10/2019 Global Cities Investment Monitor 2010
11/32
New York
London
Shanghai
Mumbai
Chicago
AMERICATop 5
New York
London
Shanghai
Mumbai
Bei jing
EUROPETop 5
Shanghai
Mumbai
Hong Kong
London
Bei jing
BRICTop 5
Mumbai
Dubai
Abu Dhabi
New York
Shanghai
ShanghaiNew York
Tokyo
Bei jing
Mumbai
ASIATop 5
GULF COUNTRIES
Top 5
Greater Paris Investment Agency
11GLOBAL CITIES INVESTMENT MONITOR 2010 BY THE GREATER PARIS INVESTMENT AGENCY AND KPMG
ATTRACTIVENESS:WIDELY DIFFERENT REGIONAL PERCEPTIONS
According to you, which 2 cities or major world capitals are currently the most attractive locationfor setting up business generally (either your business or other businesses)?
Regional breakdowns tend to underline slightlydifferent understanding of what attractiveness iscomposed of.
By comparison with the global ranking, it appears thatAsia, like the Gulf and the BRIC Countries tend to viewgrowth potential as a more important component ofattractiveness, which re ects their actual experienceof attractiveness.
Europe is the continent that is the most open to otherpoint of views, which re ects its leadership in foreigninvestments.
In my opinion, Indian investment will be morediverse than just Mumbai, in the near future.Commercial Bank, Frankfurt
India is more accessible due to linguisticconstraintsWeb agency, FranceMumbai is very attractive for outsourcingbecause of the availability of high-qualityworkforce at a low cost, and because of the timeoffset: while sleeping in New York, people areworking in Mumbai.Human Resource Consultancy, Montreal
8/10/2019 Global Cities Investment Monitor 2010
12/32
QUALITY OF LIFE ANDRESEARCH ARE
IMPORTANT, BUT INTHE BACKGROUND
WORKFORCEAND COST CRITERIARESIST STRONGLY
POLITICAL AND ECONOMICCONTEXT, INFRASTRUCTURE
AND MARKETSARE ESSENTIAL
92%
P o l i t i c a l
s t a b i l i t y
a n d j u
r i d i
c a l s
e c u r i t y
89%
I n f r a s t r u c t u r e
89%
E c o n o m i c
g r o w t h
89%
A c c e s s i b i l i t y
a n d m a r k e
t s i z
e
86%
A v a i l a b i l i t
y
o f s
k i l l e
d H R
83%
C h a r g e s ,
w a g
e c o s t s
a n d l e
v e l o
f t a x
79%
Q u a l i t y
o f e d u
c a t i o
n
75%
A v a i l a b i l i t
y a n d
p r o p e r t y
b u s i n
e s s c o s t
65%
Q u a l i t y
o f l i f e
64%
Q u a l i t y
a n d
i n n o v a t i o
n r e s e a r c h
Greater Paris Investment Agency
12GLOBAL CITIES INVESTMENT MONITOR 2010 BY THE GREATER PARIS INVESTMENT AGENCY AND KPMG
INVESTMENT CRITERIATURNED UPSIDE-DOWN BY THE CRISIS
According to you, which of the following investment criteriaare the most important when choosing your locations?
Investment criteria have evolved during the crisis.Investors are now much more aware of risks associatedby political regulation and interference in the legalprocesses.
As investment criteria, stability and predictability of theinstitutional settings, which are superior in mature,traditional markets, together with infrastructures andaccessibility to the markets, balance economic growth,favourable to new economic powers, like the BRICcountries.
The same can be observed in second-rank criterias,where quality and education of workforce balancelabour and other business costs.
The market is the main driver of investments,which explains Chinas success.Construction Group, Paris
The more you invest, the more you have tolook at the political context, and not only at theeconomic context.Human Resource Consultancy, Netherlands
8/10/2019 Global Cities Investment Monitor 2010
13/32
Greater Paris Investment Agency
13GLOBAL CITIES INVESTMENT MONITOR 2010 BY THE GREATER PARIS INVESTMENT AGENCY AND KPMG
INVESTORS SEEK STABILITYIN MATURE ECONOMIES, GROWTH IN EMERGING COUNTRIES
According to you, regarding every investment criterion, which city is generallythe most attractive for business and company location?
Paris and London have the image of typical maturemarkets, where quality matters more than costs.
Inversely, Mumbai and Shanghai are now head to headin that emerging category. Interestingly, New York andBerlin are somehow positioned in between.
PERCEPTION OF CITIES ATTRACTIVENESS, BY INVESTMENT CRITERION
The political stability criterion is not in favourof China. Political hurdles are too big. Theydiscourage investors.Auction House, London
London is central both geographically andregarding infrastructures. It is halfway betweenNew York and Europe, and very well connected tothe world.Auction House, London
London benets from simplier recruitingprocedures, a more exible labour code and staffmanagement than in other European countries.Investment Bank, Qatar
Political stability London New York Paris Berlin Mumbai
Infrastructure London New York Mumbai Shanghai Paris
Economic growth Shanghai Beijing Mumbai New York London
Market accessibility and size Shanghai New York London Mumbai Beijing
Availability of skilled HR Mumbai New York Shanghai London Hong Kong
Living costs Mumbai Shanghai Abu Dhabi New York Beijing
Quality of education London New York Paris Mumbai Berlin
Availability Mumbai Berlin London New York Shanghai
Quality of life Paris New York London Barcelona Stockholm
Quality of research New York London Mumbai Tokyo Hong Kong
Total London Mumbai New York Shanghai Paris
1 2 3 4 5
8/10/2019 Global Cities Investment Monitor 2010
14/32
4
Singapore
4
Berlin
4
London
4
So Paulo
1 7
Shanghai
1 3
Bei jing9
Mumbai
3
Paris
3
Dubai
CITIES ATTRACTIVENESS EVOLUTION FACTORS 2010-2012
Environment
1%
Innovation, technologies
3%
Political situation
7%
Cultural events or sport
s
7%
Population12%
Strategic and geographi
c location
14%
Human resources
15%
55%Economic potential
Istanbul2
Greater Paris Investment Agency
14GLOBAL CITIES INVESTMENT MONITOR 2010 BY THE GREATER PARIS INVESTMENT AGENCY AND KPMG
A TREND TOWARDS ASIAN CITIES
According to you, which city will the most increase attractiveness in the next 3 years?
Asian cities still attract thanks to their economicgrowth and relatively cheap workforce.
International events also play a major role: Londonsattractiveness is partly due to the 2012 Olympic Games,Rio and So Paulos to the 2016 Olympic Games, Berlinto the celebrations of the 20th anniversary of the fallof the wall. Shanghai probably took advantage of theuniversal exposition this year to rank rst.
PERCEPTION OF CITIES ATTRACTIVENESS EVOLUTION 2010-2012
Paris is seen as the head of a very maturemarket.Commercial Bank, Madrid
The place of Berlin in this ranking shows themisperception of Berlin by foreign investors thatdo not know Germany. Berlin is a political centre,not an economic one. Munich should be at theplace were Berlin is.Commercial Bank, Germany
Compared to Shanghai or Beijing, Mumbaisinfrastructures are not up to speed yet, but theywill be soon.Global Indian Group based in India
To conclude, it remains hard to invest anywhere.The most important is to nd skilled workforce,a well-protected environment, and to have anofce in the centre of gravity.Human Resource Consultancy, Toronto
Shanghai ...................................................... 17Beijing ............................................................ 13Mumbai ............................................................ 9
TOP 3
8/10/2019 Global Cities Investment Monitor 2010
15/32
GLOBAL CITIES INVESTMENT MONITORREALITY BENCHMARKS
Greater Paris Investment Agency
TransamericaPyramid
(260m)San Francisco
Torre Agbar(145m)
Barcelona
Sapphire Tower(261m)
Istanbul
La Dfense(111m)Paris
1250 BoulevardRen-Lvesque
(226m)Montreal
Imperial I et II(249m)
Mumbai
8/10/2019 Global Cities Investment Monitor 2010
16/32
North
America
25%+ 5 pts
Europe55%+ 5 pts
Asia19%- 1 pt 34%
-3 pts58% -2 pts
9% -1 pt
2% -1 pt
5% +1 pt
31% -1 pt
5% -1 pt
4% -1 pt
42% +3 pts
11% -2 pts
BRIC*
BRIC*BRIC*
Middle-East
Greater Paris Investment Agency
GLOBAL CITIES INVESTMENT MONITOR 2010BY THE GREATER PARIS INVESTMENT AGENCY AND KPMG16
EUROPE: THE LEADING INVESTORIN THE WORLD REGIONS
Europe is the often unknown global leader of international Greeneld Investments.
Europe is also increasingly the rst investor in Europeitself. The investments from North America remainstable at 31%. The BRIC countries are not yet key actorsin Europe, their investments remain at a low fraction ofthe global number of projects.
The primary source of Green eld Investments in Asiancities has its origin in other continents, which couldexplain the recent volatility of these cities.
ORIGINS OF GREENFIELD INVESTMENTS, BY WORLD REGIONS
The number one market for aEuropean business is Europe.
Asian companies import technologiesbut have no outsourcing culture,which contributes to their r ising power.
*Brazil, Russia, India, China
Source : FDI Markets, Financial Times Ltd
8/10/2019 Global Cities Investment Monitor 2010
17/32
78%
3% 14%
2%
2%
New York
35%48%
9% 4%4%
London
56%
28%13%
3%
Paris
So Paulo
33%
51%
11%5%
Mumbai
28%
53%
10% 8%1%
Shanghai
39%35%
24%2%
Europe
Amer ica
Asia
Middle East
Other s
Greater Paris Investment Agency
GLOBAL CITIES INVESTMENT MONITOR 2010BY THE GREATER PARIS INVESTMENT AGENCY AND KPMG17
EUROPE: THE MAIN INVESTORIN THE GLOBAL CITIES
ORIGINS OF GREENFIELD INVESTMENTS, IN SELECTED CITIES
No big surprise as access to European
markets is a key strategic point still for nationalcompanies within EuropeCommercial bank, Madrid
There is a clear movement to invest in India,but it remains easier to settle in China, asinfrastructure are still underdeveloped inMumbai.Industrial Group, Canada
Europe is the rst investor in ve selected Global Citiesout of six. Only London does not attract a majority ofEuropean investments.
Source : FDI Markets, Financial Times Ltd
8/10/2019 Global Cities Investment Monitor 2010
18/32
8/10/2019 Global Cities Investment Monitor 2010
19/32
8/10/2019 Global Cities Investment Monitor 2010
20/32
L o n d
o n
S h a n g h a i
H o n g
K o n g
P a r i s
B e i j i n g
M o s c o w
B a r c e l o n a
M a d r i d
T o k y
o
N e w Y o
r k
M u m b a i
S o P a
u l o
F r a n k f u r t
S a n F r
a n c i s c o
A m s t e r d a m
M e x i c o
I s t a n b u l
B e r l i n
S e o u l
B r u s s e l s
S t o c k o l m
M o n t r e a l
2 7 0
1 9 1
1 0 89 5
8 7 86
6 1 5 3 53 51 49 4 4 3 9 3 3 33 33
TOP 10
2 4 22 3 1
1 4 9
7 88 7
3 6
London
2 7 0
New York
8 6 Paris
1 9 1
Barcelona
9 5Madrid
8 7
Moscow
1 0 8
Bei jing
1 4 9
Shanghai
2 4 2
Tokyo
8 7
Hong Kong
2 3 1
Greater Paris Investment Agency
GLOBAL CITIES INVESTMENT MONITOR 2010BY THE GREATER PARIS INVESTMENT AGENCY AND KPMG20
THE 5 NEW LEADERS
The top 5 cities capture 51% of all projects.They are remarkably concentrated geographically:Paris and London are the two main metropolises ofWestern Europe while Beijing, Shanghai and HongKong are all located on the Chinese coastline. Thesetwo regions polarise global investments. Three outof the next ve cities are located nearby, in WesternEurope in the case of Madrid and Barcelona, and closeto the Chinese seas with Tokyo. Among the top 10 cities,only Moscow and New York do not belong to these tworegions.
GREENFIELD INVESTMENTS, BY CITY
Asian cities are very attractive in terms ofglobalization, as they are vibrant economiccentres and economically stable.Business Tourism Agency, Hong Kong
The global economic gravity centre
is still sliding towards Asia.Investment Bank, Qatar
Source : FDI Markets, Financial Times Ltd
8/10/2019 Global Cities Investment Monitor 2010
21/32
9 6
London
8 1
Paris
1 1 7
Shanghai
7 3
Bei jing
1 1 4
Hong Kong
3 6
Barcelona
3 5
San Francisco
4 6
Moscow 4 7
Tokyo4 4
Mumbai
Greater Paris Investment Agency
GLOBAL CITIES INVESTMENT MONITOR 2010BY THE GREATER PARIS INVESTMENT AGENCY AND KPMG21
3 CHINESE CITIESJOIN THE TOP COMPETITORS
Strategic functions* are concentrated in the top citiesand tend to lead other investments.
In fourth position Paris is once again very well ranked.
The international division of labour between high-techdecision-making Western Cities and assembly-line lowcost Asian Cities is clearly disappearing.
GREENFIELD INVESTMENTS IN STRATEGIC FUNCTIONS, BY CITY
Because of its English history as part of theCommonwealth, Hong Kong has greatinfrastructure and is a central place, amulticultural and multilangual centre.Indian Energy Group, Dubai
Hong Kong is a dynamic market, growing fastthanks to Chinese economics and investments.Auction House, London
Shanghai ................................................... 117Hong Kong ............................................... 114London .......................................................... 96Paris ................................................................ 81Beijing ............................................................ 73Tokyo .............................................................. 47Moscow ......................................................... 46Mumbai ......................................................... 44Barcelona .................................................... 36San Francisco ........................................... 35
So Paulo .................................................... 29New York ..................................................... 27Madrid ........................................................... 25Amsterdam ................................................ 24Mexico ............................................................ 22Stockholm .................................................. 18
Seoul ............................................................... 18Brussels ....................................................... 16Istanbul ......................................................... 16Frankfurt ..................................................... 15Montreal ...................................................... 11Berlin ................................................................ 9
TOP 10 11-16 17-22
*STRATEGIC BUSINESS ACTIVITIES :Customer contact centre, Design, Development & testing,Education and training, Headquarters, Research and development,Sales, Marketing & support, Shared services centre
Source : FDI Markets, Financial Times Ltd
8/10/2019 Global Cities Investment Monitor 2010
22/32
London
1 7
San Francisco
7
Barcelona
1 0Madrid
5
So Paulo
5
Brussels
5
Amsterdam
5
Shanghai
1 8
Hong Kong
3 0
122
33333444
5555
7
1 01 1
1 71 8
3 0
H o n g
K o n g
S h a n g h a i
L o n d
o n P a
r i s
B a r c e l o n a
S a n F r
a n c i s c o
B r u s s e l s
M a d r i d
S o P a
u l o
A m s t e r d a
m
F r a n k f
u r t
M u m b a i
S t o c k o l m
B e i j i n g
M e x i c o
N e w
Y o r k
M o s c o w
T o k y
o
M o n t r e a l
B e r l i n
I s t a n b u l
TOP 10
Paris
1 1
Greater Paris Investment Agency
GLOBAL CITIES INVESTMENT MONITOR 2010BY THE GREATER PARIS INVESTMENT AGENCY AND KPMG22
INVESTORS SEEK REFUGE VALUES
In spite of the crisis, global establishments inheadquarters have actually neatly accelerated in 2009(+36%).
Hong Kong takes a lead over Shanghai, due probably toits image as a stable business location.
Paris experiences the strongest growth in headquarters
implants over the last year.
GREENFIELD INVESTMENTS IN HEADQUARTERS, BY CITY
Asia is a concentration of production andinvestment. Headquarters enable to manageproduction closely.Business Service Company, Qatar
Hong Kong is the gateway to the Chinese market. Investment Bank, Qatar
Hong Kong stands apart as a liberal islandclose to the big Chinese marketplaces.Investment Bank, Qatar
CITY PROJECTS EVOLUTION (%)Hong Kong 30 150%Shanghai 18 38%London 17 -15%Paris 11 175%Barcelona 10 43%San Francisco 7 75%Brussels 5 25%Madrid 5 -29%So Paulo 5 N.D.
Source : FDI Markets, Financial Times Ltd
8/10/2019 Global Cities Investment Monitor 2010
23/32
4
Paris
8
Shanghai
5
Bei jing2
San Francisco
2
Mexico
2
So Paulo
2
Barcelona
2
Moscow
3
Mumbai
3
Hong Kong
Greater Paris Investment Agency
GLOBAL CITIES INVESTMENT MONITOR 2010BY THE GREATER PARIS INVESTMENT AGENCY AND KPMG23
PARIS VERSUS CHINA IN THE R&D COMPETITION
Research centres are the rarest type of Green eldInvestment and, therefore, the most valuable ones,especially with a global drop in 2009 (-18%).
Shanghai and Beijings lead emphasizes theirdeparture from assembly-line economics.
Paris achieves a remarkable result and positions
itself at the rst rank in the Western sphere.This is a consequence of its attractiveness, ofits outstanding research clusters, business andengineering schools and of the high-tech orientationof its economic system, which is well supported by aspeci c net of credit-tax for R&D: up to 50% of spendingare reimbursed.
The very good performance of So Paulo must beunderscored.
GREENFIELD INVESTMENTS IN RESEARCH CENTRES, BY CITY
Beijing is catching up fast. I am surprisedit is already that high, but it is moving asexpected.Commercial Bank, FrankfurtShanghai ......................................................... 8
Beijing ............................................................... 5Paris ................................................................... 4Hong Kong ..................................................... 3Mumbai ............................................................ 3So Paulo ....................................................... 3Barcelona ....................................................... 2Mexico ............................................................... 2Moscow ............................................................ 2San Francisco .............................................. 2
Madrid .............................................................. 1Frankfurt ........................................................ 1London ............................................................. 1Stockholm ..................................................... 1Montreal ......................................................... 1
Berlin ................................................................ 0Brussels .......................................................... 0Istanbul ............................................................ 0New York ........................................................ 0Amsterdam ................................................... 0Seoul .................................................................. 0
TOP 10 11-15 16-21
Source : FDI Markets, Financial Times Ltd
8/10/2019 Global Cities Investment Monitor 2010
24/32
Mumbai
30%33%
31%6%
So Paulo
26% 21%
39%13%
New York
11% 45%
31%13%
London
24% 35%
37%
4%
Paris
25% 35%
20%20%
Shanghai
39%8%
31%
22%
Business & Finance Se
r vices,
Real Es tate
Consumer
Products & Ser vices
IT & Communicat ion
Industr y , Energy & Eq
uipment
Greater Paris Investment Agency
GLOBAL CITIES INVESTMENT MONITOR 2010BY THE GREATER PARIS INVESTMENT AGENCY AND KPMG24
A DIVERSIFIED ECONOMY:ADVANTAGE TO PARIS
Paris, London and New York stand as mature markets,where investments in consumer products and services(like textile, food, tourism or entertainment) accountfor a large share compared with more recent marketswhere industrial (automobile, aerospace, chemistry)dominate. Shanghai is positioned intermediary,while Paris stands as the strongest industrial and ITdestination among mature markets.
GREENFIELD INVESTMENTS BY SECTORS, IN SELECTED CITIES
Source : FDI Markets, Financial Times Ltd
8/10/2019 Global Cities Investment Monitor 2010
25/32
Shanghai25%
48%
27%
Mumbai
30%
9%
31%
So Paulo
46%
47%
7%
London
59%
36%
5%
New York
2%
66%
31%
1%
Str ategic functions
Ser vices
Energy & Utilities
Manufactur ing & Con
str uction
Paris
12% 45%
43%
Greater Paris Investment Agency
GLOBAL CITIES INVESTMENT MONITOR 2010BY THE GREATER PARIS INVESTMENT AGENCY AND KPMG25
PARIS AT THE TOP WITH SHANGHAIFOR MANUFACTURING INVESTMENTS
Fast-growing cities like Shanghai, So Paulo and,particularly, Mumbai attract a larger share ofstrategic investments. However, cities with a balancedeconomy, where manufacturing accounts for a largeshare of international projects alongside services arewell placed to remain attractive to those strategicinvestments on the long term. This magic mixexplains why Paris has a higher proportion of bothstrategic functions and manufacturing investmentsthan London or New York: its diversi ed economymakes it stronger.
GREENFIELD INVESTMENTS BY FUNCTIONS, IN SELECTED CITIES
Source : FDI Markets, Financial Times Ltd
8/10/2019 Global Cities Investment Monitor 2010
26/32
Moscow
-10%
-7%
+6%
+0%
+26% -27%
+35%
+9%-19%
-31%
-6%
-27%
San Francisco
Mexico MumbaiHong Kong
Seoul
Tokyo
Bei jing
Sao Paulo
Shanghai
Montreal
New York
London
-2%
Paris-0,5%
Madrid-33%
Stockholm-8%
Frankfurt-7%Berlin-15%
Istanbul-23%Barcelona+15%
Brussels
-15%
Strong decline
Minor decline
Stable
Increase
Amsterdam
-14%
World: -8%
Greater Paris Investment Agency
GLOBAL CITIES INVESTMENT MONITOR 2010BY THE GREATER PARIS INVESTMENT AGENCY AND KPMG26
IMPACT OF THE CRISIS
The crisis caused a 10.5% drop in Green eld Investmentbetween 2008 and 2009 in the 22 cities studied.
Few are safe condence-inspiring places.
The American cities are more stable, with a strongincrease in Mexico City, probably caused by outsourcingfrom the United States.
In Asia, the investments in Hong Kong increase stronglyin contrast with the general decline in Indian, Chineseand Japanese cities. Hong Kong appears like a refugevalue in dif cult times.
Paris de es the global decline with a mere -0.5%,con rming the high measure of con dence by investorsshown in the February 2009 survey conducted by theGreater Paris Investment Agency.
GREENFIELD INVESTMENTS EVOLUTION, BY CITY, 2008 TO 2009
Source : FDI Markets, Financial Times Ltd
8/10/2019 Global Cities Investment Monitor 2010
27/32
REAL TOP GLOBAL CITIESREPORT 2005 / 2009
Greater Paris Investment Agency
Torre Caja(250m)Madrid Mirante do Vale
(170m)So Paulo
Westend Strasse 1(208m)
Frankfurt
La Dfense(111m)Paris
Torre Mayor(225m)
Mexico
Kista ScienceTower(123m)
Stockholm
8/10/2019 Global Cities Investment Monitor 2010
28/32
Madrid
4 3 8
S h a n g h a i
L o n d
o n P a
r i s
B e i j i n g
H o n g
K o n g
M o s c o w
T o k y
o
M a d r i d
M u m b a i
B a r c e l o n a
N e w
Y o r k
S o P a
u l o
F r a n k f
u r t
A m s t e r d a
m
S a n F r
a n c i s c o
S t o c k o l m
I s t a n b u l
B r u s s e l s
S e o u l
B e r l i n
M o n t r e a l
M e x i c
o
Paris
9 5 6
1 5 41 6 11 651 7 31 8 21 9 01 9 4
2 2 42 4 02 572 5 9
3 2 73 8 64 1 1
4 4 4 43 8
5 9 5
8 3 78 74
9 5 6
1 2 1 9
1 5 6 1
TOP 10
Shanghai
1 5 6 1
London
1 2 1 9
Barcelona
3 8 6 Tokyo
4 4 4
Moscow
5 9 5
Hong Kong
8 3 7
Bei jing
8 7 4
4 1 1
Mumbai
Greater Paris Investment Agency
GLOBAL CITIES INVESTMENT MONITOR 2010BY THE GREATER PARIS INVESTMENT AGENCY AND KPMG28
A NEW GLOBAL RANKING
The results for 2009 con rm the general trend inthe last ve years.Two main regions now dominatethe Greeneld Investments in the Global Cities:Eastern Asia, particularly the three main Chinesemetropolises, and Europe, which is still the rstregion to attract international investments. In 2009,European cities, Paris especially, have resisted betterthan the Chinese cities, with the notable exception ofHong Kong.It is possible that the crisis encouraged investors tolook for safe places, which would also explain why NewYork is in the top 10 in 2009 while sliding out of it in thelast ve years.
Nowadays, a company that does not invest inAsia cannot survive on the long term.Indutrial Group, France
Paris is seen as the head of a very maturemarket.Commercial Bank, Madrid
The surprisingly high ranking of London may bedue to long term investments: companies thathave started investing there will go through withit despite the crisis. But I think that if we lookforward in the next few years, the investments inLondon will decrease.Automobile supplier, New York
LAST 5 YEARS GLOBAL RESULTS, 2005 TO 2009
Source : FDI Markets, Financial Times Ltd
8/10/2019 Global Cities Investment Monitor 2010
29/32
London
Paris
Shanghai
Hong Kong
Bei jing
3 3 7
1 8 9
1 7 4
1 6 9
1 1 8
1 6 0
1 5 71 7 1
1 8 0
1 6 1
2 1 5
1 9 8 20 11 9 2
2 5 1
2 3 3
2 7 6
3 6 5
2 8 4
3 3 3
2 4 2
1 4 9
1 9 1
2 3 1
2 7 0
Number of projects
350
300
250
200
150
100
50
2004/05 2005/06 2006/07 2007/08 2008/09
Moscow
Mumbai
So Paulo
1 3 6
5 2
3 94 3
5 1
6 5
1 1 1
8 88 6
1 0 7
1 2 0 1 2 0
1 0 8
7 8
6 1
Number of projects
2004/05 2005/06 2006/07 2007/08 2008/09
40
50
60
70
80
90
100
110
120
130
140
TOP 5 CITIES EVOLUTION, 2005 TO 2009
FOCUS ON BRIC CITIES (EXCEPT CHINA), 2005 TO 2009
Greater Paris Investment Agency
GLOBAL CITIES INVESTMENT MONITOR 2010BY THE GREATER PARIS INVESTMENT AGENCY AND KPMG29
CHINA AND EUROPECOMPETE FOR GLOBAL LEADERSHIP
Chinese cities are still a majority in the top 5 GlobalCities, even if Shanghai has lost its rst position.
Hong Kong experienced a remarkable growth over thepast years.
Paris is the most stable city during the period. From 164 projects it grew to 191 (10%). Is it equippedenough to face the competitors and the development ofother more dynamic areas?
Each one of the 3 next cities, Moscow, Mumbai and SoPaulo, have suffered from the crisis, but the Braziliancity to a lesser degree.
Over a 5-year period time, So Paulo proves itseconomic dynamism and development through astrong and continuous increase in the number ofprojects received.
With the World Fair, Shanghai displays giganticbuildings which could well prove a hindrance inthe future.Media agency, Paris
The Indian market is less attractive than theChinese market. Business proves more difcultin India.Navigation systems supplier, Paris
Source : FDI Markets, Financial Times Ltd
8/10/2019 Global Cities Investment Monitor 2010
30/32
Greater Paris Investment Agency
GLOBAL CITIES INVESTMENT MONITOR 2010BY THE GREATER PARIS INVESTMENT AGENCY AND KPMG30
GLOBAL CITIES:A COMPETITION MORE OPEN THAN EVER
The Global Cities Investment Monitor is a uniquesurvey exclusively by the Greater Paris InvestmentAgency in partnership with KPMG. It ranks theattractiveness of the top cities which compete atglobal level.
There is no strict de nition for a Global City, but allhave in common to set a stimulating environmentwhere nancial and business innovation meetstop decision-makers. They are focal points whosein uences reach all continents, both densely linkedwith one another and intensely competing to de nethe best economic, urban and political standards.
Competition among Global Cities is more open thanever before. For most of the twentieth century, Paris,London, New York were the top triad. Berlin was
sidelined in the course of world wars. Moscow stoodin the Soviet bloc apart from economic competition.Tokyo was probably the rst strong challenger.
The Global Cities Investment Monitor fullyacknowledges the changing global hierarchy.
While the Greater Paris Investment Agency hasconducted for more than 15 years studies to compareand rank European cities, worldwide surveys haveremained occasional until this year.
Even with a much more open competition, very fewcities can hope to count among the top global ones. Asthe Monitor shows, either the perceptions of investorsor the real investments tend to focus on a handful ofcities and concentrate there.
What can a long-standing Global City like Parisexpect from the Monitor? It demonstrate that Parisenjoys a remarkable image and attractiveness.It shows that Paris is very well placed in terms of realinvestments too, even better than its image suggests.However, competition is intense. As a result, the
Monitor is a unique instrument for the Greater ParisInvestment Agency to advocate and support world-class investments in infrastructure, architecture andclusters in the Greater Paris, so as to make it one ofthe world-class business capitals of the twenty- rstcentury.
8/10/2019 Global Cities Investment Monitor 2010
31/32
Greater Paris Investment Agency
GLOBAL CITIES INVESTMENT MONITOR 2010BY THE GREATER PARIS INVESTMENT AGENCY AND KPMG31
THE GREATER PARIS INVESTMENT AGENCY
Aroports de Paris, Air France KLM, Altran technologies, Bal du Moulin Rouge, BanqueAudi Saradar, BNP Paribas, Bouygues Btiment Ile-de-France, Cabinet Caillau Dedouit &associs, Cabinet Fidal International, Caisses des Dpts et Consignation Ile-de-France,Chambre de commerce et dindustrie de Paris, Chambre de commerce et dindustrie deVersailles, Val dOise/Yvelines, Chambre rgionale de commerce et dindustrie Paris Ile-de-France, Clifford Chance, Colas S.A., Colony Capital Europe, Comexposium, Commissariat lnergie atomique (CEA), Credit Agricole CIB (Calyon), Deloitte&Touche, Ecole Normale deMusique de Paris, EDF, EPAMARNE Marne-la-Valle, Ernst&Young, Etablissement publicpour lamnagement de La Dfense (EPAD), Fdration nationale des travaux publics,Fdration rgionale des travaux publics, FNAIM Paris et Ile-de-France, France Amriques,France Tlcom, G7 Entreprises, Galeries Lafayette, GDF Suez, Generali, Gide Loyrette
Nouel, GMC Services, Herms, ICADE, JC Decaux SA, Klepierre, KPMG, La Poste, LG, Mazars,McKinsey & Company Inc., Medef Ile-de-France, Medef Paris, Pernod Ricard, Port Autonomede Paris, Prsence, PricewaterhouseCoopers, RATP, SILIC, SNCF, Stehlin et Associs, Total,Unibail-Rodamco, Vinci Construction France - Ile-de-France, Viparis, Wipro Technologies
OUR MEMBERSHIP: GLOBAL&MAJOR COMPANIES
8/10/2019 Global Cities Investment Monitor 2010
32/32
Top Related