GLOBAL CITIES INVESTMENT MONITOR 2015 NEW RANKINGS, TRENDS AND CRITERIA
Greater Paris Investment Agency
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global CiTies iNvesTmeNT moNiToR 2015 © The gReaTeR PaRis iNvesTmeNT ageNCy aNd kPmg
Greater Paris Investment AgencyWHY THIS MONITOR?
The GreaTer Paris invesTmenT aGency
The Greater Paris Investment Agency was established as a non-profit organization almost 25 years ago by the Paris Chamber of Com-merce and Industry. With over a hundred major French and international firms, our membership guarantees our independence. Our missions include promoting Greater Paris abroad and lobbying political and economic decision- makers.
The Greater Paris Investment Agency also specializes in benchmark studies and surveys designed to compare present and future at-tractiveness, and assess the real and perceived image of Greater Paris. It is a major player in the Greater Paris project.
The Monitor was designed to provide internatio-nal decision-makers with arguments on which to base their future investments. The Greater Paris Investment Agency presents the study’s results during road shows in countries such as Brazil, the United States, Japan, Korea, the Gulf Countries, Russia, India, China and Turkey.
The Monitor is also a reliable tool for local, national, and international policymakers. It has also helped the Greater Paris Investment Agency to attract new investors, foster the development of innovative clusters and struc-ture the Greater Paris project.
GLOBAL CITIES INVESTMENT MONITOR 2015 © THE GREATER PARIS INVESTMENT AGENCY AND KPMG3
Greater Paris Investment AgencyKEY POINTS
1. PARIS IS IN THE TOP 3
- Paris ranks 3rd, up 4 spots with a 42% increase in international greenfield investments. The global city is also 3rd for strategic investments, including headquarters, and second for regional research centers.
- Investors rank Paris 3rd for global image.
2. EuROPE COMES OuT ON TOP
- Europe is still the 1st source and destination of international greenfield investments, ahead of America and Asia.
- In continental Europe, Paris is the most attractive global city, both in image and in reality.
3. GLOBAL COMPETITION RAGES ON
- International greenfield investments became more volatile worldwide, but global cities act as anchors.
- The competition to attract international greenfield investments is more intense than ever, with all continents represented in the top 10 global cities.
- Global cities increasingly boast similar assets. Differentiation is now essential, and global cities like Paris, with high standards in innovation, high technologies and quality of life, have a clear advantage.
4. STRuCTuRAL PROjECTS AND INTERNATIONAL EVENTS MAKE THE DIffERENCE
- As the major economic development project becomes reality, international greenfield investments surge in Paris.
- Paris also aims to host the 2025 World Exhibition. It is undoubtedly an asset and an attractor.
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global CiTies iNvesTmeNT moNiToR 2015 © The gReaTeR PaRis iNvesTmeNT ageNCy aNd kPmg5
Greater Paris Investment Agency Greater Paris Investment Agency
COMPANIES BY COUNTRY OF ORIGIN
REVENUE (in euros)
BUSINESS ACTIVITY
COMPANIES BY COUNTRY OF ORIGIN
REVENUE (in euros)
BUSINESS ACTIVITY
METHODOLOGYA SCIENTIfIC APPROACH BASED ON A REPRESENTATIVE SAMPLE
PercePTiOns
A poll conducted by “opinionwayThe innovative research compagny
• Representative sample of 515 companies with international business settlements
• 24 countries
• 3 criteria: - Headquarter location - Industry - Turnover
• Phone interviews with global business leaders (CEO, managing director, administrative and financial manager, sales manager, head of international investment)
• From 5th January to 12th March 2015
BuSINESS ACTIVITY
services iT heavy industry consumer goods
22%21%
25%32%
Less than 500 millions Between 500 millions and 5 billions more than 5 billions Did not answer
REVENuE (in euros)
47%21%
30%
2%
POSITION Of THE INTERVIEWEE
ceO11%
human resources manager
2%
Development manager17%
marketing/communication manager
20%
43%Financial manager
Others7%
COMPANIES BY COuNTRY Of ORIGIN
america Greater europe Bric
asia Gulf countries
COMPANIES BY COUNTRY OF ORIGIN
REVENUE (in euros)
BUSINESS ACTIVITY
50%
36%
3%5%
6%
North America
Canada .............................20united States ...................90Total ...............................110
Middle East
Kuwait .............................10Qatar ................................10Saudi Arabia ....................10uAE ..................................20Total .................................50
Europe
france ..............................35Germany ..........................37Italy ..................................20England ...........................47Netherlands .....................10Spain ................................10Sweden ............................10Switzerland .....................20Ireland .............................10Northern Ireland ...............1Wales .................................2Total ... ........................... 202
Asia
japan ...............................41South Korea .....................10Total ................................ 51
BRIC
Brazil ...............................15China................................25Hong Kong .......................22India .................................20Russia ..............................20Total .. ............................ 102
GLOBAL CITIES INVESTMENT MONITOR 2015 © THE GREATER PARIS INVESTMENT AGENCY AND KPMG5
Greater Paris Investment Agency Greater Paris Investment AgencyMETHODOLOGY
AN OBjECTIVE fOCuS ON THE LATEST INVESTMENTS
The annual period begins with the fourth quarter:
2014
4th quarter 2013
1st quarter 2014
2nd quarter 2014
3rd quarter 2014
25 Global cities- Top destinations in terms of international
greenfield investments- Excluding City States- The most open economies, not necessarily the
top GDPs.
international Greenfield investments The Monitor measures the number of published international “greenfield” investments collected in the fDi Markets database..
International greenfield investments occur when a company launches new activities in a global city. They build up its economic potential and create jobs. Purely financial investments, like real estate transactions, privatisations or alliances are not included. Joint ventures are included only when they result in job creation.
reaLiTy
To enable verification of our sources, the Monitor allows four months to elapse from the recording of investments in the fDi Markets. Thus, the period reviewed starts with the 4th quarter of the previous year.
Tokyo
sydneysão Paolo
moscow
san Francisco
hong Kong
shanghai
mumbai
Warsaw
Düsseldorf
Frankfurt
amsterdam
London
Toronto
istanbul
Bangaloreabu Dhabi
new Delhi
Dublin
seoul Beijing
Paris madrid
new york
Barcelona
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global CiTies iNvesTmeNT moNiToR 2015 © The gReaTeR PaRis iNvesTmeNT ageNCy aNd kPmg
Greater Paris Investment Agency METHODOLOGY
25 global cities
The top global cities for the international greenfield investment list has been updated to take account of the significant rebalances experienced by the global economy.
AN uPDATED, RIGOROuS OVERVIEW
san Francisco
new york
são Paolo
hong Kong
seoul
shanghai
Tokyo
new Delhi
sydney
mexico
=
mumbai=
=
=
Beijing=
=
=
=
+
Bangalore+
+
=
-
montreal
Toronto+ -
abu Dhabi +
= In the Top 25 since 2009- In the Top 25 since 2009-2013 + In the Top 25 since 2013
Database:“fDi markets” Financial Times, since January 2003• 142,000 international investment projects• 65,000 businesses all over the world• 12,000 information sources: newspapers,
magazines, associations, websites…
Frankfurt
London
istanbul
moscowamsterdam
DüsseldorfWarsaw
stockholm
Brussels
BerlinDublin
Paris =
Barcelona=madrid=
=
=
+
+
+=
-
-
-
=
=
PERCEPTION BENCHMARKSGLOBAL CITIES INVESTMENT MONITOR 2015
chrysler Building(318m)
new york
Gherkin Tower(180m)
London
Burj al arab(321m)Dubai
La Défense(111m)Paris
Bank of china(226m)
hong Kong
World Financial center(492m)
shanghai
Greater Paris Investment Agency
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GLOBAL CITIES INVESTMENT MONITOR 2015 © THE GREATER PARIS INVESTMENT AGENCY AND KPMG
Greater Paris Investment Agency
ciTies’ GLOBaL imaGe“according to you, which 3 cities or major world capitals have the best overall image?”
GLOBAL IMAGE PARIS, THIRD WORLDWIDE
The spontaneous global image of top cities is extremely stable.
The top 10 cities were the same in the last two editions of the Global Cities Investment Monitor.
As in previous editions, Paris ranks first in continental Europe.
Paris, New York and London top the list for the sixth year.
While Tokyo has improved its image, moving up from sixth to fourth position, Berlin and Hong Kong have lost a few spots.
TOP 10
sing
apor
e
Berl
in
Toky
o
hon
g Ko
ngsa
n Fr
anci
sco
shan
ghai
chic
ago
Dub
ai
Dal
las
sydn
ey
Los
ange
les
Fran
kfur
t
Toro
nto
amst
erda
m
mun
ich
Beiji
ng
Zuri
ch
Lond
onn
ew y
ork
Pari
s
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
7
new yorkBerlin
Tokyo
shanghai
49
chicago Paris
8
London
1
3
2
4
singapore
5
6
hong Kong
8
9
san Francisco
10
9
GLOBAL CITIES INVESTMENT MONITOR 2015 © THE GREATER PARIS INVESTMENT AGENCY AND KPMG
Greater Paris Investment AgencyREGIONAL IMAGECONTINENTAL AffINITIES
ciTies’ reGiOnaL imaGe“according to you, which 3 cities or major world capitals have the best overall image?”
new york
London
Paris
shanghai
Tokyo
BRICHowever, the spontaneous regional image of the top global cities has changed, and regional affinities stand out. North American global cities appear to have improved their image in the Americas, Asian global cities in Asia, and three European global cities still make the top 5 in Europe. Dubai is in the top 5, but only in the Gulf Countries.
Last year, all reported the same 3 global cities among the top 5: Paris, New York and London. Continental image was remarkably similar to global image.
Paris enters the Bric top 5.
➞ New entries in the Top 5
Londonnew york
san Francisco
chicago
Dallas
AMERICA
new yorkLondon
Paris
EuROPE
Berlin
singapore
Londonnew york
ASIA
Tokyo
hong Kongshanghai
GuLf COuNTRIES
Dubai
Tokyo
Londonnew york
Paris
➞➞ ➞
➞
➞
➞➞
10
global CiTies iNvesTmeNT moNiToR 2015 © The gReaTeR PaRis iNvesTmeNT ageNCy aNd kPmg
Greater Paris Investment Agency Greater Paris Investment AgencyPERCEIVED ATTRACTIVENESS
PARIS IN THE TOP 5
ciTies’ GLOBaL aTTracTiveness“according to you, which 3 major world capitals are currently the most attractive locations for setting up a business generally (either your business or other businesses)?”
In the first editions of the Global cities investment monitor, global cities with the strongest economic growth enjoyed a higher perceived attractiveness. The global decline in growth rate has see-mingly levelled the field, and Asian global cities no longer have a marked advantage over European cities.
As in the spontaneous image category, Paris ranks first in continental Europe.
Pari
sh
ong
Kong
shan
ghai
Dub
aisa
n Fr
anci
sco
Beiji
ng
Fran
kfur
t
Berl
in
Toky
o
são
Paol
o
mum
bai
Los
ange
les
chic
ago
hou
ston
Toro
nto
sydn
ey
mun
ich
Lond
onn
ew y
ork
sing
apor
e
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
London
Dubai
san Francisco
8
Frankfurt
10
Paris
1
new york Beijing
shanghai
hong Kong
1
5
2
3
singapore
4
6
7
8
910
TOP 10
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global CiTies iNvesTmeNT moNiToR 2015 © The gReaTeR PaRis iNvesTmeNT ageNCy aNd kPmg
Greater Paris Investment Agency Greater Paris Investment AgencyTHE CONTINENTS’ ATTRACTIVENESS
A NEW DAWN fOR THE AMERICAS
Less than half of all companies interviewed world-wide declared their intention to develop greenfield projects over the next three years. Regional trends are fairly stable, with the exception of the Americas. Declared investment intentions there were up by almost one third.
The Middle East and Africa are expected to see a 25% increase. Paris is likely to benefit from this favorable trend.
invesTmenT PrOjecTs“in which major cities will your company invest over the next 3 years?”
AMERICAS
20142015
ASIA
AfRICA & MIDDLE EAST
2014 2015
20142015
17%12%
12%
EuROPErussia included
13%
20142015
5%4%
18%19%
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global CiTies iNvesTmeNT moNiToR 2015 © The gReaTeR PaRis iNvesTmeNT ageNCy aNd kPmg
Greater Paris Investment Agency Greater Paris Investment AgencyINVESTMENT CRITERIA
EVEN MORE COMPLEx DECISIONS
“according to you, which of the following investment criteriaare the most important when choosing your location?”
Qual
ity o
f life
65%
61%
Qual
ity o
f inn
ovat
ion
and
rese
arch
QuALITY Of LIfE AND RESEARCH
Traditionally most international investors want a golden goose: a large, secure market with high economic growth and perfect infrastructure.
However, investment criteria rankings have changed, with smaller differences in the level of importance attributed to each. This means that investors have to fine-tune their decision-making processes and consider all potential advantages of each choice.
From a marketing point of view, global cities like Paris that enjoy a strong position in high technologies and in high-added-value sectors, and also high standards in assets such as quality of life, quality of innovation, research and education will be taking advantage.
89%
Acce
ssib
ility
of
skill
ed H
R
75%
82%
Qual
ity o
f edu
catio
n
73%
Avai
labi
lity
and
cost
of r
eal e
stat
e
WORKfORCE ANDCOST CRITERIA
Livi
ng c
osts
sala
ries
and
tax
leve
ls
POLITICAL AND ECONOMIC CONTExT
93%
90%89%
Polit
ical
sta
bilit
y
and
juri
dica
l sec
urity
Econ
omic
gro
wth
Mar
ket a
cces
sibi
lity
and
size
89%
Infr
astr
uctu
re
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global CiTies iNvesTmeNT moNiToR 2015 © The gReaTeR PaRis iNvesTmeNT ageNCy aNd kPmg
Greater Paris Investment Agency Greater Paris Investment AgencyRANKINGS’ STABILITY
PARIS IN THE TOP 5
PercePTiOn OF ciTies’ aTTracTiveness, By invesTmenT criTeriOn
1 2 3 4 5Political stability and juridical security New York London Berlin frankfurt Paris
economic growth Shanghai New York London Hong Kong Beijing
market accessibility and size New York London Shanghai San francisco Beijing
infrastructure New York London Paris Tokyo Shanghai
availability of skilled hr London New York San francisco Singapore Berlin
Living costs, salaries and tax levels Singapore Bangalore London New York Beijing
Quality of education London New York Boston San francisco Paris
availability and cost of real estate Singapore New York Bangalore Dubai Barcelona
Quality of research and innovation New York San francisco London Los Angeles Bangalore
Quality of life New York London Paris San francisco Sydney
Total New York London Shanghai San francisco Paris
Although Bangalore makes a remarkable comeback in our grid, and Singapore snaps up the top spot, for the first time, in two criteria, the dominance of North American and Western European cities remains.
The convergence of major economies has triggered increasing competition among global cities. This gives an advantage to the global cities with a more extensive range of criteria. Asian cities still dominate with regard to both economic growth and costs.
Paris stays in 5th rank regarding political stability and juridical security, infrastructure, quality of education and quality of life.
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GLOBAL CITIES INVESTMENT MONITOR 2015 © THE GREATER PARIS INVESTMENT AGENCY AND KPMG
Greater Paris Investment AgencyTHE GREATER PARIS PROjECT
MEETS INVESTORS’ ExPECTATIONS
The Greater Paris initiative, is the largest economic development project in Europe, with the French government investing over €30 billion. 200 kilometers of automatic metro lines will be needed to connect the main economic and innovation hubs as well as the international airports. The aim of this project is to double Greater Paris’ GDP by 2030.
in your opinion, can this project strengthen Paris’ position as:
% NO
yes, definitely
yes, most likely
no, not really
no, not at all
% Yes
a world capitalof luxury and quality of life
48%
32%
10%
7%
80%
17 %
a city which ismore attractive
to foreign investors
49%
37%
10%
86%
13 %
3%
a “green city”: more eco-friendly
47%
26%
19%
4%
73%
23 %
a “smart city”: more intelligent and
high-tech
52%
30%
14%
2%
82%
16 %
The Greater Paris is aimed at developing what is already the leading innovation-driven real economy in Europe and one of the deepest global financial markets. Due to its exceptionally diversified economy, Greater Paris is also the largest, most liquid and least risky European market regarding business real estate (not accounted for in the study).
There has been an upsurge in inter-national greenfield investments over the last twelve months in Greater Paris (+42%) in direct contrast to other leading Global Cities. This is likely due to the Greater Paris Project, which enters its operational phase.
Greater Paris Investment Agency
Greater Paris Investment Agency
TXT a changer
shanghai Tower(xxxm)
shanghai
ccTv Tower(xxxm)Pékin
hermitage Tower(xxxm) Paris
Federation Tower (111m)
moscou
cocoon Tower(226m) Tokyo
al hamra Tower(xxxm)
Koweit city
Greater Paris Investment Agency
REALITY BENCHMARKSGLOBAL CITIES INVESTMENT MONITOR 2015
Transamerica Pyramid
(260m) san Francisco
Federation Tower (506m)
moscow
shanghai Tower(632m)
shanghai
Phare Tower(297m) Paris
sapphire Tower(261m)
istanbul
shard Tower(305m)
London
GLOBAL CITIES INVESTMENT MONITOR 2015 © THE GREATER PARIS INVESTMENT AGENCY AND KPMG GLOBAL CITIES INVESTMENT MONITOR 2015 © THE GREATER PARIS INVESTMENT AGENCY AND KPMG16 17
Greater Paris Investment Agency Greater Paris Investment AgencyEuROPE, THE LEADING DESTINATION
OriGins OF inTernaTiOnaL GreenFieLD invesTmenTs, By WOrLD reGiOn
Europe
North AmericaSouth America
Asia
Middle East
Of INTERNATIONAL INVESTMENTS
Europe is the leading investor in North and South Americas and in Asia.
Asian intercontinental investments are increasing, in contrast with transatlantic flows.Year-on-year, intra-zone investments are gaining ground compared with interconti-nental ones.
Source: fDi Markets, Financial Times Ltd
NorthAmerica
15%+2 pts
57%
3%
Europe55%
+12 pts
-10 pts
28% 13%
2%
+3 pts
15%+2 pts
+8 pts34%
SouthAmerica
10%+6 pts
-15 pts41%
Asia33%
+ 21 pts
36%-22 pts
3%
27%+3 pts
23%+9 pts
3%
1%
-5 pts
+1 pt
-1 pt
GLOBAL CITIES INVESTMENT MONITOR 2015 © THE GREATER PARIS INVESTMENT AGENCY AND KPMG16 17
Greater Paris Investment Agency Greater Paris Investment Agency
New York
Sao Paulo
Londres
Paris
Shanghai
Mumbai
New York
Sao Paulo
Londres
Paris
Shanghai
Mumbai
New York
Paris
Shangai
Mumbai
Sao paulo
London
New York
Paris
Shangai
Mumbai
Sao paulo
London
New York
Sao Paulo
Londres
Paris
Shanghai
Mumbai
New York
Sao Paulo
Londres
Paris
Shanghai
Mumbai
New York
Paris
Shangai
Mumbai
Sao paulo
London
New York
Paris
Shangai
Mumbai
Sao paulo
London
EuROPE, THE MAIN INVESTOR IN GLOBAL CITIES
OriGins OF inTernaTiOnaL GreenFieLD invesTmenTs, in seLecTeD ciTies
Others
Europe
North America
Asia
Middle East
PARIS - fOCuS ON ASIA
são Paolo
38%
44%
3%
14%
1%
London
51%
13% 3%2%
31%
Source: fDi Markets, Financial Times Ltd
Investments are mainly from Europe, except in London and Mumbai, where American investments dominate.In Paris, American investments have gai-ned 8 points (from 28% to 36%). Paris also attracted a larger number of Asian inves-tors, especially Chinese investors, who now account for the largest share of Asian invest-ments (almost two-thirds). Japanese inves-tors, traditionally the largest Asian investors in Paris, rank second.
mumbai
New York
Sao Paulo
Londres
Paris
Shanghai
Mumbai
New York
Sao Paulo
Londres
Paris
Shanghai
Mumbai
New York
Paris
Shangai
Mumbai
Sao paulo
London
New York
Paris
Shangai
Mumbai
Sao paulo
London
11% 67%
2%5%new york
15%
New York
Sao Paulo
Londres
Paris
Shanghai
Mumbai
New York
Sao Paulo
Londres
Paris
Shanghai
Mumbai
New York
Paris
Shangai
Mumbai
Sao paulo
London
New York
Paris
Shangai
Mumbai
Sao paulo
London
9%
51%36%
2%
Paris
New York
Sao Paulo
Londres
Paris
Shanghai
Mumbai
New York
Sao Paulo
Londres
Paris
Shanghai
Mumbai
New York
Paris
Shangai
Mumbai
Sao paulo
London
New York
Paris
Shangai
Mumbai
Sao paulo
London
shanghai
31%
18%
1%3%
48%
New York
Sao Paulo
Londres
Paris
Shanghai
Mumbai
New York
Sao Paulo
Londres
Paris
Shanghai
Mumbai
New York
Paris
Shangai
Mumbai
Sao paulo
London
New York
Paris
Shangai
Mumbai
Sao paulo
London
29%29%
2%
41%
64%china
29%japan
7%south Korea
1%
GLOBAL CITIES INVESTMENT MONITOR 2015 © THE GREATER PARIS INVESTMENT AGENCY AND KPMG GLOBAL CITIES INVESTMENT MONITOR 2015 © THE GREATER PARIS INVESTMENT AGENCY AND KPMG18 19
Greater Paris Investment Agency Greater Paris Investment AgencyA POSITIVE TREND
STRONGER IN ASIA AND NORTH AMERICA
DesTinaTiOns OF inTernaTiOnaL GreenFieLD invesTmenTs By WOrLD reGiOn
15% 33%
29%
5%
6%10%
3%
Global Growth: +0.4%
Oceania
north america
south america
& caribbeans
asia
europe
middle east
africa
Source: fDi Markets, Financial Times Ltd
+9%
-13%
-8%
+4%
-14%
+15%
+20%
Since 2009 (the first edition of the Monitor), international greenfield investments have globally declined 24%. With IGI an ever rarer resource globally, global cities are engaged in a long-term struggle to attract them.
International Greenfield Investments: Year-on-year changes (%)
In 2014, the global percentage average resulted from divergent regional trends: while IGI in North America, Asia and Oceania grew strongly, in South America, the Middle East and, to a lesser degree, Europe, they declined. In Europe, IGI were down 8%, but this figure masks great geographical disparities. While IGI in Western Europe (24% of world total investments) grew 3% last year, in Eastern Europe (9%), they were down 28%.
-15%
-10%
-5%
0%
5%
10%
15%
2009 2010 2011 2012 2013 2014
GLOBAL CITIES INVESTMENT MONITOR 2015 © THE GREATER PARIS INVESTMENT AGENCY AND KPMG18 19
Greater Paris Investment Agency Greater Paris Investment Agency
GLOBaL ciTies’ share OF naTiOnaL incOminG invesTmenTs
MAjOR GLOBAL CITIESTHE LARGEST INVESTMENT RECIPIENTS
Source: fDi Markets, Financial Times Ltd
International greenfield investments are still concentrated in global cities. For instance, the top 5 experienced a 14% increase in 2014 compared with a global increase of 0.4%.
Some cities attract 50% or more of internatio-nal greenfield investments in countries such as Brazil, Korea, Japan, France, or Turkey. Howe-ver, no single city attracts more than 9% of international greenfield investments in the USA, or 16% in Germany and India.
san Francisco
new york
são Paolo
>40%
30% to 40%
<20%
20% to 30%
5% 9%
Toronto 21%
49%
mumbai10%
hong Kong
seoul
45%
shanghai25%
Tokyo51%
Frankfurt
Barcelonamadrid
London
istanbul
moscowamsterdam
47%33%20%
Paris 52%12%
Düsseldorf16%
41%38%
29%
Warsaw19%
Bangalore16%
new Delhi
7%
sydney41%
Beijing9%
Dublin 60%
15%abu Dhabi 14%
GLOBAL CITIES INVESTMENT MONITOR 2015 © THE GREATER PARIS INVESTMENT AGENCY AND KPMG GLOBAL CITIES INVESTMENT MONITOR 2015 © THE GREATER PARIS INVESTMENT AGENCY AND KPMG20 21
Greater Paris Investment Agency Greater Paris Investment AgencyNEW TRENDS
PARIS IN THE TOP 3
numBer OF invesTmenTs
Lond
on
são
Paol
oh
ong
Kong
new
yor
k
sydn
ey
Dub
lin
Beiji
ngBa
ngal
ore
Toky
o
Fran
kfur
t
Barc
elon
a
mum
bai
san
Fran
cisc
o
seou
l
Düss
eldo
rf
ista
nbul
amst
erda
m
mad
rid
shan
ghai
Pari
s
Beijingnew york
são Paolo
hong Kong
Source: fDi Markets, Financial Times Ltd
Once again, all continents are represented in the top 10 global cities, reflecting a truly global competition, more open than ever before.
While Paris moved up 4 spots, to 3rd position, Hong Kong and New York each fell two places.In the top 10, Dublin (+5), Bangalore (+6) and Tokyo (+3) improved the most, while Moscow slipped from the 7th to below the 20th position.shanghai
sydney
2013 ranking 1 2 7 5 3 4 6 13 9 16 14 10 11 12 15 16 17 18 19 20
169
150
140
Paris
170
London
359
Dublin
110
267
155
93
Bengalore
91
2014 ranking
359
1
267
2
170
3
169
4
155
5
150
6
140
7
110
8
62
15
51
20
73
14
53
19
86
13
55
18
86
12
56
17
88
11
57
16
91
10
93
9
➞
➞ ➞➞
➞
➞
➞
➞
➞
➞
GLOBAL CITIES INVESTMENT MONITOR 2015 © THE GREATER PARIS INVESTMENT AGENCY AND KPMG20 21
Greater Paris Investment Agency Greater Paris Investment AgencyfOCuS ON STRATEGIC INVESTMENTS
PARIS BACK AT PRE-CRISIS LEVELS
Source: fDi Markets, Financial Times Ltd
numBer OF invesTmenTs
Strategic investments, the rarest and most coveted types of investments*, tend to be even more concentrated in the top global cities.
Here again, Paris breaks through and gains 5 spots year-on-year. Hong Kong loses 2, New York 1, San Francisco 5.
shanghai
143new york
99san Francisco
62sydney
75Beijing
64Dublin
78London
212Paris
107são Paolo
73hong Kong
71
212
99
new york
73
são Paolo
London
107
Paris64
Beijing
143
shanghai71
hong Kong
75
sydney
Dublin
78
62
san Francisco
* Strategic business activities comprise custo-mer contact centers, design, development & testing, education and training, headquarters, research and development, sales, marketing & support, and shared services centers.
GLOBAL CITIES INVESTMENT MONITOR 2015 © THE GREATER PARIS INVESTMENT AGENCY AND KPMG22
Greater Paris Investment AgencyGreater Paris Investment Agency
Source: fDi Markets, Financial Times Ltd
Even among strategic functions, some types of investments are more attractive than others.Headquarters and research centers stand out, as do marketing, sales or design centers. Here too, the rarest types of investments are concen-trated mainly in the top global cities.
Regional research centers are the rarest , and maybe even most valuable, type of strategic in-ternational greenfield investments. Headquar-ters are the most visible and advertised invest-ments. In these two categories, Paris is almost on a par with London, and nearly as strong as Shanghai for research centers.
numBer OF invesTmenTs
TOP STRATEGIC INVESTMENTS
headquarters
LondonParis
shanghai31 32
12
regional research centers
5 72
Paris
London
shanghai
REPORT 2010/2014REAL TOP GLOBAL CITIES
mirante do vale(170m)
são Paolo
Westend strasse 1(208m)
Frankfurt
Greater Paris Investment Agency
ccTv Tower(234m)Beijing
cocoon Tower(204m) Tokyo
al hamra Tower(412m)
Koweit city
hermitage Tower(320m) Paris
GLOBAL CITIES INVESTMENT MONITOR 2015 © THE GREATER PARIS INVESTMENT AGENCY AND KPMG GLOBAL CITIES INVESTMENT MONITOR 2015 © THE GREATER PARIS INVESTMENT AGENCY AND KPMG24 25
Greater Paris Investment Agency Greater Paris Investment AgencyTHE GLOBAL RANKING
fOR THE LAST fIVE YEARS, 2010 TO 2014
More than any other map, this one illustrates the long-term multipolar competition for inter-national greenfield investments.In this “great game” of the 21st century, conti-nents have at least one global city in the top 10. Still, two stand out: Europe, with four global cities, and Asia. Paris moves up a spot compared with the previous year. It is the leading destination for international greenfield investments in continental Europe.
numBer OF invesTmenTs
Source: fDi Markets, Financial Times Ltd
Beijingshanghai
Paris
hong KongBarcelona
são Paolo
new york
moscow685
sydney
864
1712
502
London
717
627
520 1047
1314
647
shan
ghai
hon
g Ko
ng
Lond
on
Pari
sn
ew y
ork
são
Paol
o
mos
cow
Beiji
ng
sydn
ey
Barc
elon
a
TOP 10
502520627647685717
8641047
1314
1712
1 2 3 4 5 6 7 8 109
GLOBAL CITIES INVESTMENT MONITOR 2015 © THE GREATER PARIS INVESTMENT AGENCY AND KPMG24 25
Greater Paris Investment Agency Greater Paris Investment AgencyEuROPE AND BRIC
COMPETE fOR GLOBAL LEADERSHIP
mumbaiSource: fDi Markets, Financial Times Ltd
The recent changes in the top 5 global cities for international greenfield investments reflect a reversal of fortunes for most of them. They largely exceed the global increase. Except for Hong Kong, all have significantly improved their performance. Paris is now in third position, boasting largest relative increase for the second year on.
100
150
200
250
300
350
400
450
2010 2011 2012 2013 2014
308
225
170
126
290
170
119108
170
195 223
151
155
189
239239
267
215
233
309
359
305
351
389
Shanghai 24%
Hong Kong -18%
Paris 43%
London 18%
São Paolo 12%
GROWTH 2013/2014
numBer OF invesTmenTs
GLOBAL CITIES INVESTMENT MONITOR 2015 © THE GREATER PARIS INVESTMENT AGENCY AND KPMG GLOBAL CITIES INVESTMENT MONITOR 2015 © THE GREATER PARIS INVESTMENT AGENCY AND KPMG26 27
Greater Paris Investment Agency Greater Paris Investment AgencyGLOBAL CITIES
A COMPETITION MORE OPEN THAN EVER
The Global Cities Investment Monitor is a unique worldwide survey conducted exclusively by the Greater Paris Investment Agency in partnership with KPMG. It ranks the attractiveness of global cities which compete at worldwide level.
Whereas there is no strict definition for a global city, they all benefit from a dynamic and stimulating environment where financial and business innovation meets top decision-makers. Global cities are focal points whose influence reaches all continents, both densely linked and intensely competing with one another to define the best economic, urban and political standards.
Competition among global cities is more open than ever before. For most of the twentieth century, Paris, London and New York formed the leading triad. Berlin was sidelined in the course of the two world wars. Moscow stood in the Soviet Bloc apart from economic competition. Tokyo was probably the first strong challenger.
Even with a much more open competition, very few cities can hope to figure among the top global ones. As the Monitor shows, investors’ perceptions as well as actual investments tend to focus on a handful of cities and concentrate there.
For more than twenty years, the Greater Paris Investment Agency has conducted studies to compare and rank European cities. The Global Cities Investment Monitor is the first yearly global benchmark study. It fully acknowledges the changing global hierarchy.
What can Paris, a long-standing global city, expect from the Monitor? It demonstrates that Paris enjoys attractiveness and a remarkable image. It shows that Paris is very well positioned in terms of actual investments too, even better than its image suggests.
The Monitor is a unique instrument for the Greater Paris Investment Agency to advocate and support world-class investments in infrastructure, architecture, and clusters in Greater Paris, to make it one of the world’s leading business capitals of the twenty-first century.
GLOBAL CITIES INVESTMENT MONITOR 2015 © THE GREATER PARIS INVESTMENT AGENCY AND KPMG26 27
Greater Paris Investment Agency Greater Paris Investment Agency
aBB, accenTure, accOr, aerOPOrTs De Paris, air France, aLTran TechnOLOGies, BaL Du mOuLin rOuGe, BnP PariBas, caiLLiau DeDOuiT & assOcies, caisse Des DePOTs, cea, chamBre De cOmmerce eT D’inDusTrie De réGiOn Paris iLe-De-France, chamBre Des nOTaires De Paris, chamBre Fnaim Du GranD Paris, ciscO, cOLas s.a., cOLOny caPiTaL, cOmeXPOsium, cOmiTe reGiOnaL Du TOurisme, creDiT aGricOLe ciB (caLyOn), DeFacTO, eDF, enGie, ePa PLaine De France, ePaDesa, erDF, eTaBLissemenT PuBLic Paris-sacLay, ey, FeDeraTiOn reGiOnaLe Des TravauX PuBLics ÎLe-De-France, FiDaL, FOnciere Des reGiOns, France ameriQues, FreshFieLDs BrucKhaus DerinGer LLP, GaLeries LaFayeTTe, Gecina, GeneraLe cOnTinenTaLe invesTissemenTs, GiDe LOyreTTe nOueL, GrOuPe G7, hcL TechnOLOGies, hermiTaGe, hinDuja GrOuP, iBm, icaDe, KPmG, La Francaise, La POsTe, marne-La-vaLLee ePamarne/ePaFrance, meDeF ÎLe-De-France, OranGe, POrT auTOnOme De Paris, raTP, reGus, semmaris, sncF, TaTa cOmmunicaTiOns, TaTa cOnsuLTancy services, TOTaL, uniBaiL-rODamcO, veOLia, vinci cOnsTrucTiOn, viParis, WiPrO, XerOX …
THE GREATER PARIS INVESTMENT AGENCY
Our memBershiP: GLOBaL&majOr cOmPanies
KPmG France is a leading audit and advisory firm, member of KPmG international, a global network of professional firms providing audit, Tax and advisory services with a presence in 155 countries across the world. KPmG employs 162,000 professionals and generates $24.82 billion in sales. The network is structured around three regions: the americas, asia-Pacific, and emea (europe – middle east – africa).
Our 8,200 professionals in France serve major international companies, smes and family groups, in all industry areas.
Greater Paris investment agency is a non-profit organization founded almost 25 years ago by the Paris chamber of commerce and industry to attract new international investors in Greater Paris and to bolster its attractiveness.
it is comprised of more than one hundred major French and multinational companies; they guarantee total independence and provide support in fulfilling the association’s main missions.
as Greater Paris business ambassador, our agency is a key partner and advisor linking government decision-makers and our prestigious business partners’ network.it is a major player in the Greater Paris project.
Greater Paris Investment Agency
jay nirsimloomanaging Director KPmG
www.kpmg.fr
chiara corazzamanaging Director
Greater Paris investment agency
www.greater-paris-investment-agency.com
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