Madrid preferred location for foreign investors

MADRID AS PREFERRED
LOCATION FOR FOREIGN
INVESTORS

April 2012

1

1.- MADRID: KEY FACTS MRID KEY FACTS

2.- WHY INVEST IN MADRID?

3.- MAIN INDUSTRIES

4.- SERVICES OFFERED BY PROMOMADRID

2

1. MADRID: KEY FACTS

LOCATION OF MADRID

3

THE MADRID REGION AT A GLANCE

Comprised of the Capital City, Madrid, MADRID in SPAIN
and the rest of the 179 municipalities:

Size: 8,028 km2 1.6% of Spain

Population (2011) : 13.8% of Spain
6.49 mill (1)

GDP (2011) :
19.7% of Spain
€211,669 mill (2)

Large foreign
population (2011) : 18.6% of Spain
Madrid region
1.07 mill (1)
Madrid City (region’s and country's capital)

Sources: (1) National Statistics Institute;
(2) Madrid Statistics Institute and National Statistics Institute

4


REGIONAL ECONOMY DEPENDENT UPON THE SERVICE SECTOR AND
SUPPORTED BY A STRONG INDUSTRIAL BASE

Gross Value Added (*) by sector, Madrid 2011
Leading Economic Sectors
(%) (1)
 Services
Agriculture  Business Services and Real Estate
Construction 8.4%
0.1%  Commerce
Industry 9.4%  Transport and Communications
 Financial Services

 Industry
 Paper products, Editing & Publishing
 Chemicals (Pharma) and Plastics
 Metal Industry
 Electronics
Services 82.1%

(*) Gross Value Added : GDP less taxes on products plus subsidies on products
Source: (1) Madrid Statistics Institute

5


TOP FOREIGN DIRECT INVESTMENT LOCATION IN SPAIN
When it comes to investing in Spain, Madrid always comes in 1st

Distribution of FDI by regions, Spain, 2007-2011
(%) (1)

Rest of Spain
21%

 FDI to Madrid reached 72,071 mill. €
between 2007-2011 (1)

Catalonia  Spain was the world’s 14th and
15%
Europe’s 6h largest recipient of FDI
64%
in 2010 (2)

Sources: (1) Ministry of Economy;
(2) World Investment Report 2011, UNCTAD

6

1.- MADRID: KEY FACTS


3.- MAIN INDUSTRIES


7

2. WHY INVEST IN MADRID?

DYNAMIC AND INTERNATIONAL BUSINESS CENTRE

8

BUSINESS FRIENDLY GOVERNMENT

 Fiscal policy friendly to foreign corporations: Holding
Companies, Tax Consolidation, Tax Credits for R&D activities

 Expats pay only 24% income tax during the first 6 years (income
generated in Spain) (*)

 Lowest regional personal income tax in Spain

 2,04 days: average time for setting up a company (Telematic
procedure) (1)

 Top “Business friendly” region in Spain (2)

(*) For annual incomes lower than 600,000 Euros

Source: (1) Ministry of Industry, Tourism and Trade, CIRCE, 2011; (2) “Business Freedom Index 2011” Thomson Reuters

9


SPAIN’S ECONOMIC ENGINE …

 Top Spanish region in terms of GDP and GDP per capita (2011) (1)

 2.4% average annual growth in 2002-2011 (2)

 Financial Centre of Spain, third in Europe and fourth worldwide (3)

 Main business hub in Spain (more than 500,000 operative companies) : (4)

 21% of all the companies created in Spain in 2011 are from Madrid (4)

 53% of the 500 main Spanish companies are headquartered in Madrid (5)

 First high technology exporter region in Spain (36% of the total of Spain) (6)

Source: (1) Regional statistics Institutes (for GDP data) and National Statistics Institute 2011 (for population data);
(2) Madrid Statistics Institute; (3) Madrid as Financial Center-Deloitte 2010; (4) National Statistics Institute;
(5) Actualidad Económica 2011; (6) Datacomex-ICEX 2011

10


7th worldwide most … AND TOP WORLDWIDE BUSINESS CENTRE
attractive city for
business

 Preferred location in Spain for foreign multinationals: over 5,000 foreign
companies are located in Madrid (1)

 3rd European city and 7th Worldwide by number of top multinational
companies with operative headquarters : (3)

BBVA, ENDESA, REPSOL, SANTANDER, TELEFONICA, etc.
 The Madrid region has a higher purchasing power than most of the other
European countries, such as Germany, the UK, France or Italy, with a
GDP per capita in 2011 of 32,616 €. (4)

5th European
Sources: (1) ORBIS 2012; (2) IBM Global Location Trends 2010; (3) UNCTAD; (4) Regional commercial centre (5)

Statistics Institute (for Madrid data) and Eurostat (for EU countries data); (5) Worldwide
Centers of Commerce Mastercard 2008

11


EXCELLENT GEOSTRATEGIC LOCATION

12

LOGISTICS CENTRE FOR THE IBERIAN PENINSULA
Transport by air Transport by land
Barajas Airport is the main National: heart of radial
airport of Spain and the 4th in
Barajas is of main airport
Europe in termsthepassenger
highway and railway system;
hub for high-speed trains.
trafficIberia and the 4th in
in (almost 50 million
passengersin terms ofis also the Since 2010 Spain boasts the
Europe in 2011). It
2nd airport in Europe in terms of EU’s largest high-speed rail
passenger traffic network (2nd in the
passenger capacity (70 million).(1)
Strategic link between world), with 1,800 miles in
Direct flights with more than
Europe and Latin America: service. (2)
208 cities worldwide in 67
30% of flights to Latin
countries(1)
More than 600 miles of
America are routed via highways in the region. (3)
Strategic link between Europe
Madrid(1) Within 8 hours by road of any
and Latin America: 1/3 of flights
market in Spain.
to Latin America are routed via
Madrid. (1) International: good road and
rail links to France and
Portugal. Impending
Transport by sea
connection to the French rail
The Dry Port in the Logistics Center of Coslada is 10 system.
minutes away from Barajas and connects Madrid with Regional: the public transport
the main Iberian ports in a few hours and at very low network provides
cost cheap, efficient and integrated
transit throughout the region’s
Sources: (1) AENA; (2) ADIF; (3) National Statistics Institute 8.000 km2.
Due to its inter-modal excellence, 60% of Spain’s largest logistic companies operate from
Madrid
13

STRATEGIC PLATFORM TO SOUTHERN EUROPE, NORTHERN AFRICA AND LATIN
AMERICA
Bridge to more than 1,300 Million(*) potential customers

 Main Multinationals with HQs for Southern Europe in
Madrid: Microsoft (Consumer Goods), Altran, Peribit
Networks, THQ, etc.

 Main Multinationals with HQs for Europe in Madrid:
Europe
Alpargatas, BP Solar, Cigna, IBM, Reynolds
Ventures, Cemex, Sany Heavy Industry Co., etc.

 Main Multinationals with HQs for EMEA in Madrid: Ericsson
Thyssenkrupp (Elevators), ICP Solar
Africa Technologies, Pemex, Grupo Modelo, etc.
South
 Main Multinationals with HQs for Latin America in Madrid:
America
Alcatel, Atlantic Cooper, BT, Qualcom, WincorNixdorf, etc.

Spain is the 2nd investor in Latin America (LAM) in 1990-
2010 (1)
(*) European Union , Mediterranean countries & LAM;
Madrid represented 60% of Spain’s investment in LAM in
Sources: (1) Cepal 2011; (2) Ministry of Economy; 2007-2011 (2)
(3) Survey AHK, German Chamber of Commerce in Spain 2010.

“50% of all German subsidiaries in Spain are 14 involved in
third markets’ decision-making” (3)


SCIENTIFIC AND TECHNOLOGICAL DEVELOPMENT CENTRE

15

PRO-R&D GOVERNMENT

R&D Weight in GDP in 2010
R&D goal in Madrid: to reach 3% of Madrid’s GDP by
2.02% (1)
2.00% (2) 2013

1.63% (1)
 Madrid, number 1 Region in Spain in terms of R&D
1.39% (1) expenditure as percentage of GDP (2.02%). (1)

 R&D expenditure of Spain and Madrid has increased
in last years ( Madrid, from 1.92% of GDP in 2007 to
2.02% of GDP in 2010. (1)

Regional, National
and European I PRIDI 2009-2012
incentives Regional Plan for
Research + Development +
Innovation

Source: (1) National Statistics Institute; (2) Eurostat

16

SPAIN’S MAIN R&D HUB 4.5 million s.q.m. devoted to science and technology clusters
R&D Professionals 2010 (1)
Madrid
25%
Univ.
Çomplutense

Univ. Autónoma
Rest of Spain 75% de Madrid

National R&D Expenditure 2010 (1)

Madrid
26% Universidad
Politécnica
de Madrid

Rest of Spain 74%

Corporate R&D’s GVA 2010 (1)

Madrid
28%

Rest of Spain 72% Universidad
Carlos III
Source: (1) National Statistics Institute

17

… SECOND EUROPEAN HIGH TECHNOLOGY REGION

High-tech employment in EU-27, 2010 (1)

Madrid is in 6th position according to
Buck Consultants’ 2009 ranking
“EuropeanTech City Index”

“One of Madrid’s competitive advantages is the
high number of universities with R&D
practices, which are so useful for the group’s
innovation processes.”
Alvaro Alcina, Strategic Development and External
Relations Director, ALCATEL

Source: (1) Eurostat, Regional Employment in High Tech Sectors

18


COMPETITIVE ECONOMY

19

..CCOMPETITIVE REAL ESTATE COSTS…
Office rental prices European office space
(€/Sq.m/annum) (1) availability ranking (2)
336 Berlín 1

Frankfurt 408 Bucharest 2

Milan 500 3

Mumbai 641 Leeds 4

Sydney 651 Birmingham 4

Paris 750 Barcelona 6

Moscow 754 Dublin 7

Hong Kong 901 Bratislava 8

Tokyo 1,051 Frankfurt 9

London 1,067 London 10

Source: (1) Knight Frank Global Real Estate Annual Review 2011; (2) European Cities Monitor 2011, Cushman & Wakefield

20


… AND LABOUR COSTS IN SPAIN …

Euro Zone Labour costs
(€/hour)1
20,6 €

Euro Zone 23,1 €

EU 27 27,6 €

ITALY 26,8 €

AUSTRIA 29,2 €

FINLAND 29,7 €

GERMANY 30,1 €

NETHERLANDS 31,1 €

FRANCE 34,2 €

BELGIUM 39,3 €

Source: (1) Eurostat , April 2012

21


… AND IN MADRID

Annual Total Remuneration Benchmarking in Europe, 2010 (€) (1)

JOB TITLE Madrid London Paris Milan Amsterdam Brussels Munich Geneva

Marketing Middle
64 578 65 367 67 507 71 779 75 579 79 039 91 304 119 386
Management
Difference with
1,22% 4,50% 11,15% 17% 22,30% 41,30% 84,80%
Madrid

Auditor 45 366 47 602 48 972 47 596 56 536 59 328 69 698 96 234

Difference with
- 5% 8% 4,90% 24,60% 30,70% 53,60% 112%
Madrid

Labour costs are distinctly low when compared with those of other Western European
countries
In comparison to its neighbors from the European-15, labour costs in Madrid are 26% lower
overall
Source: (1) Watson Wyatt Global 50, 2010

22


HIGHLY QUALIFIED AND DIVERSE HUMAN CAPITAL

23

QUALIFIED WORKFORCE

Population with tertiary education, 2010 (1)

 17 universities (plus 2 distance
learning universities)

 University graduates: more than
35,000 per year (2)

 Doctorates: more than 1,800 per
year (2)

 Number of university students:
195,000 per year (2)

 Engineering students: 45,000 per
year (2)

Source: (1) Eurostat; (2) National Statistics Institute

24

LARGE AND MULTINATIONAL LABOUR POOL

 More than 3.3 million professionals (4Q 2011) (1)

Available
workforce
 Unemployment rate: 18.5% (4Q 2011) (1)

 Europe’s 3rd largest metropolitan area (2)

 1,07 million foreigners (18.6% of the population) (3)

 More than 11,000 foreign students per year (4.4% of total university
students, higher than the national average of 3.2%) (4)

International  36% of the Spanish population speaks one or more foreign languages fluently
 Madrid concentrates the highest percentage of students learning a foreign
language in Spain: 91.4% English, 16.5% French and 1.5% German (5)

 Spain 1st destination in Europe under ERASMUS program

Source: (1) National Statistics Institute; (2) UN-World Urbanization Prospects 2007; (3) National Statistics Institute; (4) Ministry of Education 2010-11; (5) Financial Times 2009

25


UNIQUE QUALITY OF LIFE

26

ABILITY TO ATTRACT AND RETAIN TALENT

“Madrid, my new home. Best for life and business”
Ruth Härdle, Eurocopter Spain, R&D Configuration Management

 Spain # 1 in terms of quality of life for expatriates (1)
 Top Quality Multilingual Education: 50 international schools, 242
bilingual public schools and 32 bilingual public high-schools.
 Universal health system with 87 hospitals.
 Madrid is the 2nd city in the world by quality of its health system. (2)
 Wide range of cultural and leisure activities:
Museums, Theatres, Concert Halls, Theme Parks, etc.
 Sailing and skiing within 1 hour of Madrid’s downtown
 Outstanding weather: 2.769 hours of sun per year (15ºc)

“Madrid has the best combination of whatever a businessman needs”
Ricardo Weiss, TAVEX-Brasil, Corporate General Manager
Source: (1) HSBC 2011; (2) Global Cities 2011, Euromoney.

27



3.- MAIN INDUSTRIES


28

3. MAIN INDUSTRIES
INVESTMENT SECTORS
IT and Telecommunications Logistics, Retail & Hospitality Clean Energies
IBM, Alcatel-Lucent, DHL, FEDEX, Kiala, Pal Iberdrola,
BT, Toshiba, Nokia, letways, Accor Petratherm, MT-
HP, Oracle, Atos, , Autogrill, Decathlon, Enerterra, Suzlon,
BT, Motorola, H&M, Leroy Vestas, Sunpower,
Siemens, Microsoft, Merlin, McDonalds, Ne Suntech, First
SAP, Vodafone, wrest, Primark, Travell Solar, Yingli Solar,
Google, Accenture odge ABB
Aerospace Life Sciences Finance
EADS, Boeing, Airbus, ICBC,BMCE,
Pfizer, Bristol Myers Deutsche Bank,
Eurocopter, Thales
Squibb, GSK, Sanofi Barclays, BNP-
Alenia Space, Alcatel,
Aventis, MSD, Lilly, Paribas, Western
EuroProp Int., General
Janssen Cilag, Novo Union, Generali,
Dynamics, CAE, Safran
Nordisk, Italfarmaco, AXA, Allianz , Saxo
Gr., Hexcel,
Merck Serono, Bayer Bank, CIGNA, Zürich
RR Plc, Goodrich

Business Services

Clifford Chance, DLA
Pipper,Baker&McKenzie,
Boston
Consulting,PWC, Deloitte,
KPMG, E&Y,Voith, Jacobs,
FW, Mc Cann-
Erikson, DDB

29

3. MAIN INDUSTRIES

INVESTMENT OPPORTUNITIES

R&D and Excellence Centres Regional HQs & SSC Distribution Centers

Abbott, Carrefour,
IBM, Boeing, Ericsson Accenture, Altran, BT, Danone, Dunlop,
, Motorola, HP, GSK, J Cigna, Cemex, Grupo Inditex, Fnac,
anssen- Modelo,BMCE, Daimler Holmen Paper,
Cilag, Lilly, Alcatel- , Deloitte, Ericsson, IB Legrand, Lilly, MSD,
Lucent, Pfizer, Sieme M, Praxair, Pemex, Ro Míele, Renault,
ns, Vodafone, Sanofi che, Microsoft, Nixdor Roche,Toys-R-Us,
Aventis f, Thyssen Krupp Valeo, WEG

30



3.- MAIN INDUSTRIES


31

4. SERVICES OFFERED BY
PROMOMADRID

We provide companies with information and advice throughout
their investment decision process and implementation

PRELIMINARY
OBJECTIVES IMPLEMENTATION
STUDY

 To attract new  Advice and supply  Advice and support
foreign companies to of tailor-made to commence
the Region of Madrid information operations in Madrid

 To help foreign  Organization of
companies already visit to Madrid
settled in Madrid to
increase their
business

32

PROMOMADRID
PRELIMINARY
IMPLEMENTATION
STUDY
PRELIMINARY STUDY

 Economic data: macroeconomic and demographic, regional and local
figures
 Market intelligence
 Legislation: investment, company, labour and social security, tax and
accounting
 Business and Operational Costs: labour, property, utilities, pricing and
setting-up costs
 Property availability: rental/sales, industrial/office and warehouse/labs
 Support programmes and Available incentives
 The most suitable product and service providers
 The search for potential partnerships, strategic alliances and joint
ventures with local companies

33

PROMOMADRID
PRELIMINARY
IMPLEMENTATION
STUDY
PRELIMINARY STUDY

Organize client’s visit to Madrid

 Organize visits to potential location sites

 Arrange meetings with foreign businesses located in Madrid

 Meetings with sectorial associations and incentive management entities

 Programme of visits to companies who may be potential investment partners

34

PROMOMADRID
PRELIMINARY
IMPLEMENTATION
STUDY
IMPLEMENTATION

 Practical guidance with administrative procedures

 Liaisons with local, regional, and national institutions

 Help in finding project financing

Advice regarding obtaining business incentives

Help in choosing and securing final location

35

PROMOMADRID

THIS CUSTOMIZED INFORMATION AND GUIDANCE
WILL BE PROVIDED AT NO CHARGE AND ON A
STRICTLY CONFIDENTIAL BASIS

36

SOLID CUSTOMER BASE

37

SOLID CUSTOMER BASE

38

Thank you

C/ Suero de Quiñones, 34
Madrid 28002
Tel: +34 917 450 127
Fax: +34 914 110 913
info@promomadrid.com
www.promomadrid.com

39

Madrid preferred location for foreign investors

Recomendados

Recomendados

Mais conteúdo relacionado

Semelhante a Madrid preferred location for foreign investors

Semelhante a Madrid preferred location for foreign investors (20)

Último

Último (20)

Madrid preferred location for foreign investors