Global Cities Investment Monitor 2010

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THE NEW RANKINGS, TRENDS AND CRITERIA

GLOBAL CITIESINVESTMENT MONITOR 2010

Greater Paris Investment Agency


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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


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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



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


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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:



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


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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


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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



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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


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


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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



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


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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



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


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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



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


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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



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


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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


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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



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


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GLOBAL CITIES INVESTMENT MONITORREALITY BENCHMARKS


TransamericaPyramid

(260m)San Francisco

Torre Agbar(145m)

Barcelona

Sapphire Tower(261m)

Istanbul


1250 BoulevardRen-Lvesque

(226m)Montreal

Imperial I et II(249m)

Mumbai


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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



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


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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



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.



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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



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



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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



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



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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



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.



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4

Paris

8

Shanghai

5

Bei jing2

San Francisco

2

Mexico

2

So Paulo

2

Barcelona

2

Moscow

3

Mumbai

3

Hong Kong



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



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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



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



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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%



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



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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%



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



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REAL TOP GLOBAL CITIESREPORT 2005 / 2009


Torre Caja(250m)Madrid Mirante do Vale

(170m)So Paulo

Westend Strasse 1(208m)

Frankfurt


Torre Mayor(225m)

Mexico

Kista ScienceTower(123m)

Stockholm


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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



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



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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



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



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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.


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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


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Global Cities Investment Monitor 2010

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