GLOBAL CITIES INVESTMENT MONITOR 2018 - NEW RANKINGS, TRENDS AND CRITERIA - Paris Ile-de-France Capitale ...

 
GLOBAL CITIES INVESTMENT MONITOR 2018 - NEW RANKINGS, TRENDS AND CRITERIA - Paris Ile-de-France Capitale ...
GLOBAL CITIES
INVESTMENT
MONITOR 2018
NEW RANKINGS, TRENDS AND CRITERIA
GLOBAL CITIES INVESTMENT MONITOR 2018 - NEW RANKINGS, TRENDS AND CRITERIA - Paris Ile-de-France Capitale ...
GLOBAL CITIES INVESTMENT MONITOR 2018

                                             THE GLOBAL CITIES
                                             INVESTMENT MONITOR,
                                             TURNED TOWARDS
                                             THE FUTURE
                                             Global cities are attractive and stimulating environ-
                                             ments where top decision-makers, talents and finan-
                                             cers join to produce business and social innovation.
                                             They are a global network of densely connected focal
                                             points, each intensely competing with the other to
                                             define the best economic and political standards.

                                             Global Cities concentrate a disproportionate part of
                                             talents, businesses and capital. They are the places
                                             where most decisions are made, innovations launched,
                                             and people enabled. Global cities are to the world what
                                             cities are to a country. And then there are top global
                                             cities, where everyone expects the world of tomorrow
                                             to be shaped and where, as a result, world-changing
                                             moments actually happen.

                                             The club of top global cities has opened and expanded
                                             far beyond the 20th century happy few. While Paris,
                                             London and New York have successfully reinvented
                                             themselves, and still possess unique brands, competition
                                             among global cities is more open than ever before.

                                             The Global Cities Investment Monitor demonstrates
                                             that Greater Paris is an attractive business player with a
                                             remarkable global image. It is also 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.
Singapore
GLOBAL CITIES INVESTMENT MONITOR 2018 - NEW RANKINGS, TRENDS AND CRITERIA - Paris Ile-de-France Capitale ...
GLOBAL CITIES INVESTMENT MONITOR 2018
EDITORIAL
                                           Jay                                                                           Christian
                                    NIRSIMLOO                                                                            NIBOUREL
                                      Chairman,                                                                          Chairman,
                                    KPMG France                                                                          Greater Paris
                                                                                                                         Investment
                                                                                                                         Agency

                                                                                                                                   PARIS

                                                  PARIS IS NOW POSED TO BECOME
                                                                                                                                    3    e

                                                  THE LEADING DESTINATION IN
                                                  POST-BREXIT EUROPE

                                                  I
                                                     nternational investments were up 80% in Paris last year.
                                                     This was by far the highest percentage among global cities
                                                     and a probable record-breaker. Paris reached the top 3.
                                                  The gap with the leader was even more reduced for strategic
                                                  investments. Paris emerged as the winning global city in post-
                                                  Brexit Europe, way ahead of competitors.
                                                  Can it last? International investors think so. They even think Paris
  2017 : GLOBAL DYNAMICS       4                  will be one of the two global cities whose attractiveness will
  2017: THE MOST ATTRACTIVE                       increase the most over the next years. Investors now recognize
  GLOBAL CITIES                6                  that Paris is a top player under most criteria. The perception of
  2017: INVESTORS’ PERCEPTIONS                    a global business hub is definitely there, besides the top brand
  OF GLOBAL CITIES             12
                                                  for quality of life.
  INVESTOR'S CRITERIA          16

  FOCUS ON PARIS               18
                                                  Investors answered the policies implemented to welcome
                                                  talents, science, environment-friendly initiatives, as well as the
  METHODOLOGY                 24
                                                  pro-business reforms. This is good news for Paris and for Europe,
                                                  which is once again the leading destination for business project
                                                  in the world. Long may Paris be that lighthouse for innovation,
                                                  prosperity and openness.

                                                                                                                                             | 3
GLOBAL CITIES INVESTMENT MONITOR 2018 - NEW RANKINGS, TRENDS AND CRITERIA - Paris Ile-de-France Capitale ...
GLOBAL CITIES INVESTMENT MONITOR 2018

                                    2017 : GLOBAL DYNAMICS
                                    Global stability
                                    While 2016 was marked by a strong growth in international greenfield
                                    investments, 2017 witnessed a return to a more stable market.
                                    With -1% the global trend remains neatly above the last decade
                                    yearly average (-3%).

                                    A pivot to… Europe
                                    International investments surged in Europe in 2017. The continent’s
                                    market share rose an unprecedented 7 points, from 36% to 43%, while
                                    the Asia-Pacific region declined from 32% to 27%. It was the third
                                    consecutive rise for Europe, in sharp contrast with the previous years,
                                    when Asia-Pacific had taken the lead. The market shares of the other
                                    regions were comparatively stable. As a result, Europe is way ahead
                                    as both the global destination and source of international greenfield
                                    investments.

                                    A new balance within Europe itself
                                    European global cities all jumped many ranks as a result of the
                                    continental surge, with one major exception: London, which actually
                                    registered fewer projects than the previous year. It is likely that Brexit
                                    began to take a toll on the City’s attractiveness, and a radical reshaping
                                    of Europe’s leadership might be under way. No other European city
                                    experienced a boom comparable to Paris. The gap with London
                                    shrunk by almost two thirds. The catch-up is even more pronounced
                                    regarding strategic investments. Paris emerged as the main destination
                                    for intra-European investments.

                                    Paris: in the top 3 globally, taking a lead in Europe
                                    International investors interviewed consistently indicated that they
                                    viewed the new, enhanced attractiveness of Paris as more than a
                                    temporary conjecture. Supporting their analysis is the marked rise of
                                    Paris regarding almost all major investment criteria. Paris is particularly
                                    distinguished for its infrastructure, human resources, business real
                                    estate, higher education, innovation and start-up ecosystem.

4 |
GLOBAL CITIES INVESTMENT MONITOR 2018 - NEW RANKINGS, TRENDS AND CRITERIA - Paris Ile-de-France Capitale ...
GLOBAL DYNAMICS

DESTINATION OF INTERNATIONAL
GREENFIELD INVESTMENTS                                                                                                                                                  ¢
                                                     NORTHERN
                                                                                               43%                                                                  Y/y(%)
Percentage of total by world            +2%          AMERICA
region and year-on-year
variation for each region
                                        ¢     14%

                                                                                    ¢
                                                                                    +5%
                                                                                                                    MIDDLE
                                                                                                                    EAST
                                                                                                                                      ASIA

                                                                               EUROPE
                                                                                                                     4%
                                                                                                                                        29%
                                                                                               4%                                              å
                                                                                                                                               -12%
                                                            8%      SOUTHERN
                                                                    AMERICA
                                                                                                                       å
                                                                                                                       -2%
                                                                                                                                                    PACIFIC
                                                                                                                                                              +6%

                                               å
                                               -2%                               AFRICA   å                                                         3%
                                                                                                                                                              ¢

                                                                                          -3%

                                                                                                                                                        43 EUROPE
       GLOBAL INTERNATIONAL GREENFIELD
       INVESTMENTS: YEAR-ON-YEAR CHANGES (%)                                                     39
                                                             11                           40
                                                                                                       36                                     36
                                                                                                               35        35
                      9                                                                                                                33
10                                                                                        35                                    33

8                                                                                                                                      34
                                                                                          30                                    32            32
6                                                                                                30    30      31                                             ASIA
                                                                                                                         28
                                                                                                                                                        27
                                                                                                                                                              PACIFIC
4
                                                                                          25
2

0                                                                                         20
             -4
-2                                                                     -1                                                                                     NORTHERN
                                                                                          15                                                                  AMERICA
-4

-6     -8                                            -9
                                                                                                                                                              SOUTHERN
                                                                                          10
                                                                                                                                                              AMERICA
-8
                                      -11                                                                                                                     AFRICA
                                                                                           5
-10                                                                                                                                                           MIDDLE EAST
                            -12
                                                                                          0
      2009   2010    2011      2012   2013    2014   2015    2016       2017                    2010   2011   2012      2013   2014   2015   2016      2017

                                                                                                                                                                             | 5
GLOBAL CITIES INVESTMENT MONITOR 2018 - NEW RANKINGS, TRENDS AND CRITERIA - Paris Ile-de-France Capitale ...
GLOBAL CITIES INVESTMENT MONITOR 2018

      2017: THE MOST ATTRACTIVE
      GLOBAL CITIES
                                                                                               Toronto
            NUMBER OF INTERNATIONAL                                                              114

            GREENFIELD INVESTMENTS IN
                                                                           San
            THE 35 LEADING CITIES WORLDWIDE                             Francisco
                                                                            74                           New York
            In 2017, all continents have at least one global city in                                       156

            the top 15 for international greenfield investments.        Los Angeles
                                                                            52
            This “great game” of the 21st century is a very open,
            multipolar competition unlike any other on the planet.
            Two clusters of top destinations for international
            greenfield investments stand out: Western Europe
            and Eastern Asia. This map of international greenfield                    Mexico
                                                                                        61
            investments by global cities closely reflects the global
            equilibria indicated page 5. Indeed, global cities
            attract the lion’s share of international investments.
            The top 35 global cities alone attract nearly 45% of
            the world’s total.
            There is only a weak average correlation between
            the cities’ (or the nations’) GDP and the international
            greenfield investments attracted. Many other factors                                                    Sao Paulo
            than wealth influence a city’s attractiveness and                                                          101
            business climate. Most are listed under “investors’
            criteria” (pp. 16-17). A city attractiveness is therefore
            fluid and hierarchies changing.

6 |
GLOBAL CITIES INVESTMENT MONITOR 2018 - NEW RANKINGS, TRENDS AND CRITERIA - Paris Ile-de-France Capitale ...
2017: THE MOST ATTRACTIVE GLOBAL CITIES
      London
         390
                  Paris
                   338

         Dublin
          132     Amsterdam                                                                       Beijing
                     124                                                                               79       Seoul
                                                                                                                    38
                   Düsseldorf
                         74
                    Francfort
                          94
  Barcelona                                 Moscow                                                                         Tokyo
      135                                      41                                                                           112
                                   Warsaw
                          Berlin     67                         Pune                                            Shanghai
                              58                                  47                                                 173
Madrid                   Munich
 95                         91                                                      Rangoon
                                                                                         35
                    Milan                                                                         Hong
                     49                                                                           Kong
                                                                                                      161
                                                                         Hyderabad
                                                                            41
                                                             Bangalore
                                                                137                            Ho Chi
                                                                           Kuala Lumpur       Minh City
                                                                                  40             79
                                                     Dubai
                                                      248
                                                                                 Singapore
                                                                                   354

                                                                                                                                   Sydney
                                                                                                                                    121

                                                                                                            Melbourne
                                                                                                               77

                                    Johannesburg
                                          31

                                                                                                                                            | 7
GLOBAL CITIES INVESTMENT MONITOR 2018 - NEW RANKINGS, TRENDS AND CRITERIA - Paris Ile-de-France Capitale ...
GLOBAL CITIES INVESTMENT MONITOR 2018

                                                                                                                  NUMBER OF INTERNATIONAL GREENFIELD INVESTMENTS
                                                                                                                  IN THE 35 LEADING CITIES WORLDWIDE
                                                                                                                  (variations are expressed in percentage of the total)

                                                                                                                  London, Singapore, Paris, and, to a lesser extent, Dubai clearly stand out of the
                                                                                                                  competition.
                                                                                                                  The top 3 or 4 global cities attract a disproportionate share of international
                                                                                                                  greenfield investments. Like global cities capture a superior share of international
                                                                                                                  greenfield investments compared to other cities, the leading trio operates a
                                                                                                                  superior concentration compared to global cities. These cities play the role of
                                                                                                                  focal points of the world’s exchange system.
                                                                                                                  In 2017 Paris has surged from the 7th to the 3rd rank thanks to a 78% increase
                                                                                                                  year-on-year in incoming international greenfield investments, probably the
                                                                                                                  most important change recorded by the Global Cities Investment Monitor. Other
                                                                                                                  European cities, like Barcelona, Dublin, Amsterdam or Madrid, have experienced
                                                                                                                  a remarkable growth, but not the same exceptional one. The causes of this
                                                                                                                  dynamic are analysed by investors from p.12 onwards.
                                                                                                                  The winners-take-all tendency observable in general in international greenfield
                                                                                                                  investments is even more marked regarding investments in strategic functions,
                                                                                                                  although in that case Paris, and Singapore are almost on a par with the leader.

           T
           -2
              E3 E  E T T T E
                 78 15 -12 -2 -2
                                   E E E E5 -18
                                 4 39 47 31
                                            T E    E E E T T E 12 -19 30 46 33 -53 13 -14 24 52 -15 -23 -33 -29 -9
                                                27 10 19 18 -32 -4 5 E T E E E T E T E E T T T T T T

            1       2           3      4        5          6           7          8           9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35
          London

                   Singapore

                               Paris
                                       Dubai

                                               Shanghai

                                                          Hong Kong

                                                                      New York

                                                                                 Bangalore

                                                                                             Barcelona

                                                                                                         Dublin

                                                                                                                  Amsterdam

                                                                                                                              Sydney

                                                                                                                                       Toronto

                                                                                                                                                 Tokyo

                                                                                                                                                         Sao Paulo

                                                                                                                                                                     Madrid

                                                                                                                                                                              Francfort

                                                                                                                                                                                          Munich

                                                                                                                                                                                                   Beijing

                                                                                                                                                                                                             Ho Chi Minh

                                                                                                                                                                                                                           Melbourne

                                                                                                                                                                                                                                       San Francisco

                                                                                                                                                                                                                                                       Dusseldorf

                                                                                                                                                                                                                                                                    Warsaw

                                                                                                                                                                                                                                                                             Mexico

                                                                                                                                                                                                                                                                                      Berlin

                                                                                                                                                                                                                                                                                               Los Angeles

                                                                                                                                                                                                                                                                                                             Milan

                                                                                                                                                                                                                                                                                                                     Pune

                                                                                                                                                                                                                                                                                                                            Moscow

                                                                                                                                                                                                                                                                                                                                     Hyderabad

                                                                                                                                                                                                                                                                                                                                                 Kuala Lumpur

                                                                                                                                                                                                                                                                                                                                                                Seoul

                                                                                                                                                                                                                                                                                                                                                                        Rangoon

                                                                                                                                                                                                                                                                                                                                                                                  Johannesburg
                                                                                                                                                                                                                                                                                                                                                                                                 Dubai
8 |
GLOBAL CITIES INVESTMENT MONITOR 2018 - NEW RANKINGS, TRENDS AND CRITERIA - Paris Ile-de-France Capitale ...
2017: THE MOST ATTRACTIVE GLOBAL CITIES

2013-2017: VARIATIONS IN TOP 5 CITIES                                                                                                                  2013-2017 : CUMULATED
                                                                                                                                                       INVESTMENTS IN TOP 10
                                                                  452                                                                                  CITIES
                                    435
                                                                                                                                                       International greenfield investments
                                                                                                                                                       in strategic functions : top 15 cities
404                                                                                                398                     390
                                    412                                                                                                 London         230
                                                                                                                           354          Singapore
378                                                                                                                                                              198 198
                                                                  354                                                      338          Paris
                                                                                                   343

                                    270                           269
257                    245                                                                                                 248                                                      138
249
                                                                                                                                        Dubai
                                                                                                   215
                                    240                           245
227                                                                                                                                                                                          101
                                                                                                                                                                                                         89
                                                                                                                                                                                                                    82 80
                                                                                                   190                     173          Shangaï                                                                                             72
                                                                  181                                                                                                                                                                                  71       71
                                                                                                                                                                                                                                                                        64 62
                                                                                                                                                        199                                                                                                                   60
                                                                                                                                                                                                                                                                                                      55
      2013                          2014                          2015                              2016                         2017

2013-2017: CUMULATED INVESTMENTS IN TOP 10 CITIES

                                                                                                                                                       London
                                                                                                                                                                Singapore
                                                                                                                                                                            Paris
                                                                                                                                                                                    Dubai
                                                                                                                                                                                            Shanghai
                                                                                                                                                                                                       Bangalore
                                                                                                                                                                                                                   New York
                                                                                                                                                                                                                              Hong Kong
                                                                                                                                                                                                                                          Barcelona
                                                                                                                                                                                                                                                      Dublin
                                                                                                                                                                                                                                                               Tokyo
                                                                                                                                                                                                                                                                       Sydney
                                                                                                                                                                                                                                                                                Amsterdam
                                                                                                                                                                                                                                                                                            Madrid
                                                                                                                                                                                                                                                                                                     Toronto
             2030
                       1890

                                      1240    1229                                                                                                     Strategic investments, the rarest and most
                                                      1077                                                                                             coveted type of investments, tend to be even
                                                                   979
                                                                                                                                                       more concentrated in the Top global cities.
                                                                              841
                                                                                          696      658         648                                     Strategic business activities comprise customer
                                              138
                                                                                                                           2013-2017                   contact centers, design, development & testing,
              1          2                3    4       5           6          7           8        9           10                                      education and training, headquarters, research
              =          =             S       F       F           =          =           S        F            =          Rankings :
                                                                                                                           cumultated IGI              and development, sales, marketing & support,
                                       +2      -1       -1                                +1       -1                      over 5 years                and shared service centers.
              London

                        Singapore

                                      Paris

                                              Dubai

                                                       Shanghai

                                                                   New York

                                                                              Hong Kong

                                                                                          Sydney

                                                                                                   Sao Paulo

                                                                                                               Bangalore

                                                                                                                                                                                                                                                                                                               | 9
GLOBAL CITIES INVESTMENT MONITOR 2018 - NEW RANKINGS, TRENDS AND CRITERIA - Paris Ile-de-France Capitale ...
GLOBAL CITIES INVESTMENT MONITOR 2018

       TOP DESTINATIONS BY ORIGIN OF INVESTMENTS

       The global hierarchy differs
       depending on the region of          EUROPE
       the origin of international
       greenfield investments :              Paris                                                       157
                                             Singapore                              		             144
       • Paris is global leader
         regarding European                  Dubai                                           132
         investments, followed               New York                                  112
         by Singapore. London
         is only fifth in that category,     London                                  106
         which represents 43%
         of all investments.
       • Singapore is global leader
         regarding Asian investments
         (27% of the global total),        NORTHERN AMERICA
         followed by London.
                                             London                					                                       188
       • London comes first for
         American Investments (14%),         Paris                 			122
         followed by Paris                   Singapore             		                107
         and Singapore.                      Dublin                       72
                                             Toronto                57

                                           ASIA
                                             Singapore                         86
                                             London                      68
                                             Ho Chi Minh           49
                                             Hong Kong             49
                                             Dubai            45
                                             Paris            39

                                                                                                                     San Francisco
10 |
LEADING GLOBAL CITIES FOR INTERNATIONAL GREENFIELD INVESTMENTS

      ORIGINS OF INTERNATIONAL GREENFIELD INVESTMENTS BY WORLD REGION
      Percentage of total                                                                                                              EUROPE
                                                                                                                                       NORTHERN AMERICA
              3% 2%         NORTHERN                                1%2%
                      1%    AMERICA
                                                                                27%                                                    SOUTHERN AMERICA
                                                                                                                                       MIDDLE EAST
                                                                                                                                       AFRICA
                                                       12%
                             22%
57%           15%                                      1%
                                                                      57%                                                              ASIA PACIFIC

                                                                                                      27%
                                              EUROPE

                                                                                                                       33%
                                                                                                                                               Top destinations for
                      1%
                             32%                                                                             36%                           international greenfield
                                   SOUTHERN                                                                                               investment are all highly
                                   AMERICA                                                                                  ASIA
                                                             AFRICA                                 1%                      PACIFIC          diversified in terms of
                                                                                              41%                                       sources. Only international
                                                                15%             15%                   3%
                                                                                                                                            equilibria may change.
       42%            8%
                                                                                                                                         Europe is the first investor
                                                                                                                                            in three of the selected
                                                                                                                                           Global Cities out of five:
                                                                          9%            20%                                                     New York, Paris and
                             17%                                                                                                        Shaghai. Northern America
                                                                                                                                             prevails in London and
                                                                                                                                         Bangalore. Asian Investors
      ORIGINS OF INTERNATIONAL GREENFIELD INVESTMENTS IN SELECTED CITIES                                                                come third in all five cases.
      Percentage of total

             NEW YORK                                  Paris                             LONDON                  SHANGHAI                       BANGALORE

             3% 1% 6%                                                                   36%                        1% 2%                        0% 2% 2%
                            1%                                 1%                                                          0%
                                          48%                       4%                                                                  39%                    13%
                                                                                                           30%                  19%
                                 17%                                 2%
                                                                                                    2%
                                                                          18%                        1%
                                                                                                      3%

                                                                                                    12%

      72%                                                           27%           46%                                            48%                          44%

                                                                                                                                                                        | 11
GLOBAL CITIES INVESTMENT MONITOR 2018

       2017: INVESTORS’ PERCEPTIONS OF GLOBAL CITIES
       CITIES’ GLOBAL IMAGE

       “
                                                                              Aerial view of Manhattan island, New York, USA
           In your view, which 3 cities
           or major world capitals have
           the best overall image?”

            Percentage of quotations by city
           1 New York                50%
           2 London                  38%
           3 Paris                   28%
           4 Shanghai                 13%
           5 Tokyo                    10%
           5 Francfort                10%
           5 Singapore                10%
           8 Berlin                    9%
           9 San Francisco             6%
            Chicago                   5%
            Los Angeles               5%                        2        8
            Sydney                   4%                10           35
            Toronto                  4%
                                               9             1                                                5
            Copenhague               4%           10
            Stockholm                4%                                                              4
            Hong Kong                4%
            Madrid                   4%
                                                                                                  5
            Munich                   4%
            Dublin                   4%
            Beijing                   3%
            Dubai                     3%
                                       3%

12 |
2017: INVESTORS’ PERCEPTIONS OF GLOBAL CITIES

CITIES’ REGIONAL IMAGES

“
     In your view, which 3 cities or major world                        MIDDLE EAST
                                                                        INVESTORS
     capitals have the best overall image?”
                                                                        Dubai
                                                   EUROPEAN             London
✪ enter the top 5                                  INVESTORS            New York                   ASIAN
                                                                        Singapore                  INVESTORS
                                                   London
                                                   New York             ✪ Paris (11 e
                                                                                        en 2017)   S New York
                                                   Paris (3e en 2017)                              F Tokyo
                                                   Berlin                                          S Shanghai
                                                   Shanghai                                        ✪ Singapore
                                                                                                   F London
                                                                                                   S Paris (7 en 2017)
                                                                                                             e

                                  AMERICAN
                                  INVESTORS
                                    New York
                                  S Paris (3 en 2017)
                                            e

                                  F London
                                  ✪ San Francisco
                                    Francfort
                                  ✪ Chicago

                                                                                                                         | 13
GLOBAL CITIES INVESTMENT MONITOR 2018

       CITIES’ GLOBAL ATTRACTIVENESS

        “
            In your view, which 3 major world capitals are currently the most attractive
            locations for setting up a business in general (whether another business or yours)?”

          Percentage of quotations by city
                                                                                                            Singapore Harbour
          1 New York                27%

          2 London                  21%                                                   62    5
                                                               10                           4 6
          3 Shanghai               20%
                                                                    1                                   6
          4 Paris                   11%                                                                 3
          5 Berlin                  10%
                                                                                                    6
          6 Hong Kong                6%

          6 Francfort                6%

          6 Beijing                  6%

          6 Dublin                   6%

           Chicago                  5%

           Dubai                    5%

           Tokyo                    5%

           San Francisco            5%

           Singapore                5%

           Madrid                   5%

           Mumbai                   4%

           Hambourg                 4%

           Toronto                  4%

14 |
2017: INVESTORS’ PERCEPTIONS OF GLOBAL CITIES

CITIES’ GLOBAL FUTURE (ANTICIPATED) ATTRACTIVENESS

“
    According to you, which city will the most increase attractiveness in the next 3 years?”

                     1                                                  2S                                              3S
                  Shanghai                                               Paris                                         NewYork

               3                                     5S                                        6S                             6
             Mumbai                                 Francfort                                  NewDelhi                      London

                                                                                                                                               | 15
GLOBAL CITIES INVESTMENT MONITOR 2018

       INVESTMENT CRITERIA                                                                      Of course, investors want to select the best opportunities, combining the highest
                                                                                                returns with the lowest risks. As a result, fundamentals matter when selecting a
       TOP 11 INVESTMENT CRITERIA                                                               place to invest. Building the sort of economic and political environment that makes
                                                                                                a truly global city is a rare achievement and the global city a rare commodity.
                                                                                                Political stability and juridical security are probably the most difficult to achieve,

        “
                                                                                                yet they are the first criterion for investors. Availability of skilled RH, market
             In your view, which                                                                accessibility and size, infrastructure and economic growth come next. Quality
             of the following                                                                   in education, innovation and R&D, quality of life or startup ecosystem are a less
             investment criteria are                                                            often quoted, yet this does not mean that they are not often decisive means of
         the most important when                                                                differentiation in the competition between global cities.
         choosing your location?”

                   1. POLITICAL STABILITY AND JURIDICAL SECURITY                                               89%
                   2. INFRASTRUCTURE                                                                         86%
                   3. AVAILABILITY OF SKILLED HR                                                             86%
                   4. ECONOMIC GROWTH                                                                       83%

                                       5. MARKET ACCESSIBILITY AND SIZE
                                                                                                                             78%
                                       6. LIVING COSTS, SALARIES AND TAX LEVELS                                             77%
                                       7. AVAILABILITY AND COST OF REAL ESTATE                                      67%
                                       8. QUALITY OF EDUCATION                                                     65%

                                                              9. QUALITY OF LIFE                                                          56%
                                                              10. QUALITY OF RESEARCH AND INNOVATION                                  50%
                                                              11. STARTUP ECOSYSTEM                                                  49%

                                                                                                                                                        Panoramic view of Shanghai, China
16 |
INVESTMENT CRITERIA

TOP CITIES’ RANKING BY INVESTMENT CRITERIA

   “
         According to you, regarding every investment
         criterion, which city is generally the most attractive
         for business and company location?”
                                                                                                           Paris
                                                                                                           RANKING

                                                  1er         2e          3e          4e          5e         2018        2017
1. POLITICAL STABILITY AND JURIDICAL SECURITY   New York     Berlin    Francfort    London      Toronto      7e E         8e
                                                                                                  San
2. INFRASTRUCTURE                               London      New York   Francfort    PARIS      Francisco     4e E         6e
                                                                                                                                  A city’s brand matters, even
                                                                          San
3. AVAILABILITY OF SKILLED HR                   New York    London     Francisco   Francfort   Shanghai      6   e
                                                                                                                     E    8   e   when it comes to analyzing a
                                                                                                                                  city’s attractiveness, criterion
                                                                                                                                  by criterion. This is why more
4. ECONOMIC GROWTH                              Shanghai    New York   London      New Delhi    Beijing          -        -       mature economies, like New
                                                                                                                                  York, or Berlin are better ranked
                                                                                      San
5. MARKET ACCESSIBILITY AND SIZE                New York    Shanghai   London      Francisco   Francfort    15e T        14e      on political stability while a
                                                                                                                                  more-recently emerged one,
                                                                                                                                  like Shanghai gets its better
6. LIVING COSTS, SALARIES AND TAX LEVELS         Dublin     New York   Shanghai    Mumbai       London           -        -       marks on growth, market size
                                                                                                                                  and costs. A city’s brand is a
                                                                                                                                  strong asset, and changing it a
7. AVAILABILITY AND COST OF REAL ESTATE         New York    Shanghai   London       PARIS       Berlin
                                                                                                                                  daunting affair for promoters
                                                                                                                                  and investors alike.
                                                                                      San
8. QUALITY OF EDUCATION                         London      New York    Boston     Francisco    PARIS        5e E         7e
                                                                                                                                  Among the global cities which
                                                                                      San                                         have recently experienced a
9. QUALITY OF LIFE                              New York    PARIS      London      Francisco   Barcelona     2   e
                                                                                                                     R    2   e
                                                                                                                                  quite dramatic change of status:
                                                                                                                                  San Francisco and Paris. Both
                                                   San
10. QUALITY OF RESEARCH AND INNOVATION
                                                Francisco   London     New York    Francfort   Shanghai      6e E         7e      cities have surged in categories
                                                                                                                                  linked to high-tech economy:
                                                   San                                                                            “skilled human resources”,
11. STARTUP ECOSYSTEM                           Francisco   New York   London       PARIS      Shanghai      4e E         6e      “quality of education”,
                                                                                                                                  “quality of life”, “quality of
                                                                                      San
TOTAL                                           New York    London     Shanghai    Francisco    PARIS        5e R         5e      research and development”,
                                                                                                                                  “startup ecosystem”.

                                                                                                                                                                      | 17
GLOBAL CITIES INVESTMENT MONITOR 2018

       FOCUS ON PARIS
       PARIS: A POSITIVE OUTLOOK FOR A TOP
       BRAND AND A MAJOR DESTINATION
       In 2017, international greenfield investments surged 80% in Paris,
       now the third most attractive global city in the world, far ahead of the
       next competitor.
       Is this a game changer for Paris or a temporary spike due to abnormal
       conditions in Europe and elsewhere? Our survey contains a few keys to
       analyze the underlying trend.
       First, the levels of attractiveness perceived by international investors are
       very close to the actual ranking of Paris: third or fourth globally, either
       one considers the city’s global image or a more analytical appreciation of
       the city’s position regarding each investment criterion. Few competitors
       enjoy such a level of consistency between the investors’ opinions and the
       measurable reality.
       Second, the investors’ predictions tend to distinguish Paris as the second-
       best among the cities which will see their attractiveness increase over
       the next three years. If anything, this result reinforces the sense that the
       underlying trend is indeed a favorable one for Paris. Its new-found position
       as a member of the top trio could therefore very well be a lasting one.
       Supporting this analysis are the investors’ perceptions about Paris
       specifically: the investors who think that the attractiveness of Paris will
       improve over the next three years outnumber those who think the opposite
       three to one, an almost complete inversion compared to four years ago.
       The policies of the French government that address the protection of the
       environment, international affairs and business demands are equally likely
       to reinforce the investors’ analysis that Paris is much better placed than
       London and other cities to be the next European leader.

18 |
FOCUS ON PARIS

            “                                                                                                                       S“
                 In your view, will Paris over the three next years
                 become more or less attractive as a location for                                                        More
                 setting up a business in general (whether another                                                                                   Because
             business or yours) or will its attractiveness be stable?”                                                                               Paris is
                                                                                                                 “ Becauseof Brexit,                 unique.„
                                                                                                                 companies move
                            Stable
                                            D              35
                                                                  32%
                                                                                                                 over from London.”
                                                                                                                                                          “     Because of
                                                                                                                                                                President

                                                                                                                     «
                                                                                                          32%                                                   Macron’s drive
                                                                                                                         Highly talended                      invest
    “
                                                                                                                                                           to             more
         Paris is already a highly                         30                28%                                         people move                       in infrastructure and
         developed economy.”                                                               27%                           back to Paris                     in higher education.”
                                                                                                                     because of Brexit.»
“ The labour market
is highly resilient
and attractive
                            “      There is little
                                   room for change
                                   in my industry
                             [the car industry].”
                                                           25

                                                           20
                                                                  17%
                                                                             25%
                                                                                              19%                                   “
                                                                                                                                        Because of the changing
                                                                                                                                        political climate, France is
                                                                                                                                        becoming much more
                                                                                                                                     investment-friendly.”
compared to other countries.”

«       Paris is one of the most
        attractive cities in the world.
        And this is not going to change.»
                                                            15
                                                                                                           12%       “
                                                                                                                      Confidence
                                                                                                                     is back thanks
                                                                                                                                                  “   Because of Paris’
                                                                                                                                                      aggressiveness
                                                                                                                                                      in high tech.„

                                                                                                                                              «
                                                            10                                                       to political
                                                                  2015       2016           2017          2018       stability, and Paris
            “ London is going to recede compared                                                                     harbors great                 The crisis
            to the other European capitals.”                                                                         human resources               is over. »

                            « Because  of the European
                              migrant crisis.          »
                                                                 Less
                                                                         F          “ I love Paris as a
                                                                                                                     and quality of life is
                                                                                                                     exceptional.”

                                                                                                                              “     Because costs
                                                                                                                                                 “
                                                                                                                                    are going down
                                                                                                                                                        Because of
                                                                                                                                                        France’s global
                                                                                                                                                        leadership.”

                                                                 “
                                                                                    touristic destination, not
                                                                                                                                    in France.”
                                                   Because                          as a business center.”

                                    “                                                                                                                 “
                                                                                                                                                          Because France
                                            Because of               of labour
                                                                                                                                                          is politically

                                                                                                                 “
                                            language barriers.”      costs.”                                         Because of France’s
                                                                          «      Because Asian Markets
                                                                                                                                                          stable.”
                                                                                                                     growth potential. ”

                                                                                                                     «
                            “ Because       of insecurity”                       are on the rise.”
                                                                                                                               Paris is exceptionally well
                                  “ Because it is a
                                  shrinking market”
                                                             “        Paris is going to
                                                                      be more expensive
                                                                      due to Brexit.„
                                                                                                                               located in Europe.»”

                                                                                                                                                                                   | 19
GLOBAL CITIES INVESTMENT MONITOR 2018

                FOCUS ON PARIS' ATTRACTIVENESS

                “
                     In your view, did Paris’
                     attractiveness increase due to…

        %
       yes

                       EUROPE
                        Climate change policy-making		        68%
                        The election of Emmanuel Macron
                        as President of the French Republic   48%
                                                                                                   ASIA
                        Fight against terrorism			            62%
                        Improving proficiency in English                                              Climate change policy-making		        51%
                        among French people		                 55%                                     The election of Emmanuel Macron
                                                                                                      as President of the French Republic   44%
                                                                                                      Fight against terrorism			            47%
                                                                                                      Improving proficiency in English
                                                                                                      among French people			                51%

             NORTHERN AMERICA
             Climate change policy-making		         69%
             The election of Emmanuel Macron
             as President of the French Republic    59%        MIDDLE-EAST
             Fight against terrorism			             62%         Climate change policy-making		            68%
             Improving proficiency in English                   The election of Emmanuel Macron
             among French people			                 63%         as President of the French Republic       48%
                                                                Fight against terrorism			                62%
                                                                Improving proficiency in English
                                                                among French people			                    55%

20 |
FOCUS ON PARIS

BREXIT: THE IMPACT ON PERCEIVED ATTRACTIVENESS

“
    The United Kingdom is about to leave the European Union. In the context of « Brexit »
    is investing in London becoming more attractive? or less attractive? And what about
    investing in Paris? And what about Europe?” ?

                                                                  EUROPEAN INVESTORS

          AMERICAN INVESTORS                                F
                                                            -67
                                                                            S
                                                                            +6
                                                                                            S
                                                                                            +16
                                                                                                        ASIAN INVESTORS

    F              S
                   +9
                                   S
    -29                            +7
                                                                                                  F
                                                                                                  -32
                                                                                                             F
                                                                                                             -4
                                                                                                                          S
                                                                                                                          +14

                                                                 MIDDLE-EAST INVESTORS

                                                           F
                                                           -18
                                                                           S
                                                                           +1
                                                                                            S
                                                                                            +17

                                                                                                                                | 21
GLOBAL CITIES INVESTMENT MONITOR 2018

       PARIS: INTERNATIONAL GREENFIELD INVESTMENTS BY SECTOR (%)

                 17                  17               19                         19                    19           18

                 4                   2
                                     2                3                          3                      2           3
                 3                   3                1                          3                                  3
                                                      3                                                 4
                 2                   4                                           3                      3           3
                 3                                    3
                                                      2                          5                      3           4
                 1                   6
                 5                                    3                          3                      6           4
                                     5                8                          4                                  4
                 9                                                                                      4
                                                                                                                    7
                                     8                                           8                      5
                                                     10
                12                                                               6                      7           8
                                     9

                                                      21                         17                    15           17
                12
                                     17

                31                   26              28                          31                    32          30

              2003>2005          2005>2008         2009>2011                  2012>2014            2015>2017      TOTAL

                          SOFTWARE & IT SERVICES      BUSINESS &IT SERVICES               FINANCIAL SERVICES      OTHERS

                          TRANSPORTATION              REAL ESTATE                         ELECTRONIC COMPONENTS   INDUSTRIAL MACHINERY,
                                                                                                                  EQUIPEMENTS & TOOLS
                          CONSUMERS PRODUCTS          HOTELS & TOURISM                    COMMUNICATION

22 |
FOCUS ON PARIS

WHO’S INVESTING IN GREATER PARIS (BY WORLD REGION) ?

              EUROPE

              NORTHERN AMERICA

 70%          ASIA PACIFIC                                                                                        400
              PROJECTS

 60%                                                                                                              350

                                                                                                                  300
 50%

                                                                                                                  250
 40%

                                                                                                                  200

 30%
                                                                                                                  150

 20%
                                                                                                                  100

 10%
                                                                                                                   50

 0%                                                                                                                0
       2003   2004     2005   2006   2007   2008   2009   2010   2011   2012   2013   2014   2015   2016   2017

                                                                                                                                         | 23
GLOBAL CITIES INVESTMENT MONITOR 2018

       METHODOLOGY
         PERCEPTIONS                                                 The Monitor is a reliable tool for policymakers and investors, with a rigorous, transparent and stable methodology.
                                                                     It is an exclusive benchmark study by Greater Paris Investment Agency in partnership with KPMG.
                                                                     This Monitor is designed to perceive and describe the fluid and ever-changing dynamics of our contemporary
            A poll conducted with a representative sample of         world, by focusing on the latest decisions rather on accumulated stocks of wealth. It uses homogenous indicators
                                                                     that reflect global movements and pinpoint the latest fluctuations.
            516 companies with international
            business settlements
            • 22 countries
                                                                            ¢                             ¢
                                                                     As a result its rankings are much more open and evolving that other rankings, which focus on global cities’
                                                                     accumulated wealth and “power”. In short, our Monitor is turned towards the future.

            • 3 criteria:
            - Location of headquarters                                                               EUROPE
            - Industry
                                                                                                     France            35
            - Turnover                                                                               Germany           35
            • Phone interviews with global                            NORTHERN
            business leaders
            (CEO, managing director, administrative and
            financial manager, sales manager, head of
                                                                      AMERICA
                                                                      Canada
                                                                      United States
                                                                                       20
                                                                                       90
                                                                                                     Italy
                                                                                                     Netherlands
                                                                                                     Spain
                                                                                                     Sweden
                                                                                                                       20
                                                                                                                       10
                                                                                                                       10
                                                                                                                       10
                                                                                                                                                                             ¢  %
            international investment)                                 Total            110           Switzerland       20                                        ASIA
            12 February to 2 April 2018                                                              UK                50                                        China            25
                                                                                                     Ireland           10          MIDDLE EAST                   Hong Kong        20
                                                                                                     Russia            20                                        India            20
                                                                                                                                   Kuwait           10
                                                                                                     Total            220                                        Japan            40
                                                                       SOUTHERN                                                    Qatar            10
                                                                                                                                   Saudi Arabia     10           South Korea      10
                                                                       AMERICA
                                                                                                                                   UAE              20           Total            115
                                                                       Brazil             15                                       Total            50
                                                                       Total              15

                             POSITION OF THE INTERWIEVEE                                                             REVENUE (in ¤)                  BUSINESS ACTIVITY
                         FINANCIAL MANAGER            			                           29%
       MARKETING / COMMUNICATION / MANAGER           		                                      33%
                                                                                                                            24%                              11% 19%
                      DEVELOPMENT MANAGER            4%                                                            40%                37%                 40%     30%
                                       CEO                     13%
                             SALES MANAGER                 10%
                 HUMAN RESOURCES MANAGER             4%
                                    OTHERS              7%
                                                                                                              ■ Less than 500 million                     ■ Service
                                                                                                              ■ Between 500 millions and 5 bilion         ■ IT
                                                                                                              ■ More than 5 bilion                        ■ Heavy industry
                                                                                                                                                          ■ Consumer goods

24 |
METHODOLOGY

                                                                                                               35 GLOBAL CITIES
International Greenfield Investment                                                                            Top destinations in term of international
The Monitor measures the number of published international "greenfield"                                        Greenfield investments
investments collected in the fDi Markets database. International greenfield
investments occur when a company launches new activities in a global city. They
built up its economic potential and create jobs. Purely financial investments, like
real estate transactions, privatisations or alliances are not included. Join ventures
are included only when they result in job creation.
The Monitor uses the simplest possible unit: a published investment project, by
contrast with expected job creations or capex, so as to maximize comparability and
minimize interferences from local factors – currency fluctuations, governmental
promotion, etc.)
The Top global cities for international greenfield investments list has been regularly
updated to take account of the significant rebalances in the global economy.

                                                                                                                               Moscow
                                                                                                 Amsterdam
                                                                                         Dublin
                                                                                                            Berlin
                                                                                           London
                                                                                                        Munich
                                                                                                Paris
                                              Toronto                                                  Francfort
                                                                                         Madrid
                                                                                                Barcelona    Istanbul                                              Seoul
                             San Francisco                                                                                                                                  Tokyo
                                                                                                                                                       Beijing
                                  Los Angeles           New York                                                        Abu Dhabi

                                                                                                                           Dubai     New Dehli                   Shanghai
                                                                                                                                    Pune     Rangoon
                                                                                                                                       Hyderabad         Hong Kong
                                                  Mexico
                                                                                                                                    Bangalore            Ho Minh City
Database                                                                                                                                   Singapour
“fDi markets” Financial                                                                                                                         Kuala Lumpur
Times, since January 2003
• 188 000 international
investment projects
• 86 000 businesses all                                                    Sao Paulo
over the world                                                                                              Johannesburg                                                        Sydney
• 15,929 information sources:                                                                                                                                           Melbourne
newspapers, magazines,
associations, websites…

                                                                                                                                                                                    | 25
KPMG FRANCE
KPMG France is a leading audit and advisory firm, member of KPMG
International, a global network of professional firms with a presence in 154
countries across the world. KPMG France employs 9,000 professionals
and serve major international and French companies, SMEs or family groups,
and start-ups, in all industry areas.

GREATER PARIS INVESTMENT AGENCY
Greater Paris Investment Agency is a non-profit organization founded 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 major 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.

GPIA MEMBERSHIP :
A GLOBAL REACH FOR A GLOBAL CITY
ACCENTURE, ACCORHOTELS, PARIS AEROPORT, AIR FRANCE, ALTAREA
COGEDIM, BNP PARIBAS, BOUYGUES IMMOBILIER, CAISSE DES DEPOTS, CEA,
CHAMBRE DE COMMERCE ET D’INDUSTRIE DE PARIS ILE-DE-FRANCE, CHAMBRE
DES NOTAIRES DE PARIS, CISCO, COLONYNORTHSTAR, COMEXPOSIUM,
COMITE REGIONAL DU TOURISME, CONDUENT, CREDIT AGRICOLE CIB
(CALYON), EDF, ENEDIS, ENGIE, EPA PLAINE DE FRANCE, EPADESA, EPT GRAND
ORLY VAL DE BIEVRE SEINE-AMONT, EUROPACITY, EY, FEDERATION REGIONALE
DES TRAVAUX PUBLICS ÎLE-DE-FRANCE, FRANCE AMERIQUES, GALERIES
LAFAYETTE, GECINA, GENERALE CONTINENTALE INVESTISSEMENTS, GIDE
LOYRETTE NOUEL, GROUPE G7, HERMITAGE LIFESTYLE, ICADE, INVIVO, JONES
DAY, KEOLIS, KPMG, LA FRANCAISE, LA POSTE, MARNE-LA-VALLEE EPAMARNE/
EPAFRANCE, MEDEF ÎLE-DE-FRANCE, METROPOLE DU GRAND PARIS, ORANGE,
HAROPA, PRESENCE, PWC, RATP, SANEF, SAP, SNCF, SOCIETE DU GRAND
PARIS, TRANSDEV UNIBAILRODAMCO, VINCI SA, WILMOTTE & ASSOCIES…
EDITORIAL BOARD
Nicolas Beaudouin
Partner, Head of Development for Paris,
KPMG
nbeaudouin@kpmg.fr
Alexandre Missoffe
Managing Director,
Greater Paris Investment Agency
amissoffe@gp-investment-agency.com
Christophe Scheidhauer
Benchmarking&Studies Leader,
Greater Paris Investment Agency
cscheidhauer@gp-investment-agency.com
Jeanne-Marie Monpeurt
Graphic design
Pictures : ©i-stock
Find all the results and press releases on :
    http://gp-investment-agency.com/

                                                                   Beijing Central Business District
                         www.greater-paris-investment-agency.com
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