fDi American Cities of the Future 2013/14 press release

PRESS RELEASE

For immediate release 

New York City claims the title as the top city in the Americas for inward investment attractiveness but the fast-rising São Paulo is proving a fierce competitor

Despite a 16% global decline in FDI in 2012, New York has remained the top destination for FDI into the Americas and was named fDi Magazine’s American City of the Future 2013/14. São Paulo followed closely in second and Toronto in third.

The Big Apple showed its mettle by winning the rankings despite both economic (Wall Street bail out) and natural (Hurricane Sandy) disasters, remaining one of the world’s top destinations for investors and attracting 1.08% of global FDI. Even in the face of Hurricane Sandy, New York managed to retain its title as the Best Major (see below for population categories) American City for Infrastructure, previously won in the 2011/12 rankings.

But a South American competitor is nipping closely at its heels. For the first time in fDi Magazine’s bi-annual rankings, the Brazilian city of São Paulo has not only entered the top 10 but it ranked second overall. São Paulo consolidates its position as a key player in the global FDI arena (it reached sixth place worldwide in 2012) and also manages to snatch the top position in economic potential from New York (which won the 2011/12 rankings), to claim the title of Best Major American City for Economic Potential. According to greenfield investment monitor fDi Markets - part of the same division of the Financial Times as fDi Magazine - FDI into the South American business metropolis has increased year on year since 2004.

Canadian cities Toronto, Montreal and Vancouver respectively ranked third, fourth and fifth overall, and performed particularly well in the attraction of knowledge-intensive FDI.

US cities made up the remainder of the top 10, with Houston, Atlanta, San Francisco, Chicago and Miami ranking sixth to 10th, respectively.

In a weakened global economy, US, Brazilian and Canadian cities continue to attract the lion’s share of FDI into the Americas region. However, cities in Mexico, Colombia and Chile are offering a more competitive deal than ever to entice potential investors, and many governments and investment agencies are implementing initiatives to improve infrastructure, business regulations and financial incentives.

Other highlights include:

  • With the exception of New York, Montreal-based companies invested in more FDI projects than other city in the Americas region
  • San Francisco and Houston experienced the largest growth in FDI projects behind São Paulo and New York
  • Relative to population size, Atlanta and Miami were in the top five for attracting FDI
  • São Paulo has also been named the Latin American City of the Future 2013/14, pushing the previous winner, Santiago (Chile), into second position, and leaving fellow Brazilian metropolis Rio de Janeiro ranking third
  • Five new entrants featured in this year’s Latin American top 10 cities: Rio de Janeiro, Buenos Aires, Mexico City, Panama City and Montevideo
  • Colombia’s strategy to rebrand the country and build a positive international image to potential investors appears to be paying off, and FDI into Bogotá has increased year on year since 2008
  • San Jose, California, the largest city within the world-renowned Silicon Valley, was named Best Large American City for Economic Potential
  • Sunnyvale, California, is named as the Best Small City for Economic Potential again this year. Also located within the Silicon Valley area, Sunnyvale’s attraction as a destination is enhanced by the presence of global companies such as Yahoo! and Advanced Micro Devices, which are headquartered in the city
  • Boston ranked as the Best Major American City for Human Resources 2013/14
  • The coastal sea port of Seattle topped the category for best infrastructure among large cities. Home to the ninth largest port in North America in terms of container handling, Seattle continues to be a major gateway for trade with Asia 

An awards ceremony will be held at the IEDC annual conference, taking place in Philadelphia on October 6 – 9, 2013.

Population categories

For the 2013/14 ranking, fDi Magazine introduced new population category parameters. To categorise cities, fDi took into account both the population of the immediate city area and that of the metropolitan area.

Major (49 cities)
The cities in this category had an immediate city population of more than 750,000 people plus a metropolitan area of more than 2 million, or a metropolitan area of more than 4 million.

Large (52 cities)
This category included those cities with an immediate city population of more than 500,000 plus a metropolitan area of more than 1 million, or a metropolitan area of more than 2 million people.

Mid-sized (80 cities)
The cities in this category had an immediate city population of more than 200,000 people plus a metropolitan area population of more than 750,000, or an immediate city population of more than 350,000 people.

Small (196 cities)
Cities categorised as small had an immediate city population of between 100,000 and 350,000.

Micro (43 cities)
Micro cities had an immediate city population of fewer than 100,000.

-ends-

For further information please contact Dino Ribeiro, on dino.ribeiro@ft.com or call +44(0)20 7873 3964 / +44 (0)7739 924084.  The full results are available onhttp://www.fdiintelligence.com/Rankings – please register to download the full results for free. 

 

 

Notes to editors

About the rankings

 

These rankings are part of fDi Magazine's 'Locations of the Future' series, which are

designed to identify the most promising destinations around the world for future inward

investment. Each world region is assessed over two years.

 

To create the shortlist of 'American Cities of the Future 2013/14', fDi's research team

collected data using the specialist online FDI tools fDi Benchmark and fDi Markets as well as

other sources. Data was collected for 422 cities under five categories: ‘Economic Potential’,

‘Human Resources’, ‘Cost-Effectiveness’, ‘Infrastructure’ and ‘Business Friendliness’. A sixth

category was added: ‘FDI Strategy’. In this category, 127 cities submitted details about their

current strategy for FDI promotion and this was scored by fDi’s judging panel. Cities scored

up to a maximum of 10 points under each individual datapoint, which were weighted by

importance to the FDI decision making process in order to compile both the subcategory

rankings as well as the overall ‘American Cities of the Future’ ranking.

 

Referencing

 

Please state the source as fDi Magazine, from the Financial Times. The source is not the

Financial Times newspaper.

 

About fDi Magazine

 

fDi Magazine is a specialist publication which reports on crossborder investment and is read

by senior-level executives at multinational corporations and others involved in corporate

greenfield site-selection decisions. A bi-monthly publication, fDi Magazine is part of the fDi

Intelligence division of the Financial Times

 

About fDi Intelligence

 

fDi Intelligence (www.fDiIntelligence.com) is the largest FDI centre of excellence globally.

Specialising in all areas relating to foreign direct investment and investment

promotion, the full suite of services includes: location advertising to generate brand

awareness; industry-leading intelligence tools to develop FDI strategies and identify potential

investors; and tailored FDI events and investor roundtables to meet target companies and

generate business leads.

 

Products within the portfolio include fDi Markets, a database tracking crossborder greenfield

investment on a real-time basis; fDi Benchmark, a database which benchmarks global

locations on their attractiveness to foreign investors; and fDi Magazine.

 

About the Financial Times

 

The Financial Times, one of the world’s leading business news organisations, is recognised

internationally for its authority, integrity and accuracy. Providing extensive news, comment

and analysis, FT.com is the definitive home for business intelligence on the web, providing an

essential source of news, comment, data and analysis for the global business community.

What's New

The latest announcements from fDi Intelligence, international press coverage and media contacts.

Latest fDi announcements

Global Free Zones of the Future 2012/13

fDi Magazine’s second global ranking of economic zones has awarded Dubai Airport Free Zone the title of Global Free Zone of the Future 2012/13.

UK tops European inward and outward FDI tables

The UK recorded an increase of 13% in FDI project numbers, capital investment in the UK increased by 48% and FDI job creation by 33%, according to a report released by fDi Intelligence. The number of FDI projects in Europe declined by 3% in 2011, with a mixed performance across countries. 

Europe displays a mixed performance in FDI

The number of FDI projects in Europe declined by 3% in 2011, with a mixed performance across countries, according to a report released by fDi Intelligence. In terms of total job creation, FDI in Russia generated the highest number of new jobs, with 89,047 jobs created in 2011 compared to 66,817 in the UK. This was despite a decline in FDI in Russia in 2011. 

Natural disasters hamper growth in Asia-Pacific FDI

China, India and Singapore attracted 2485 of the 4330 FDI projects into Asia-Pacific, according to a report released by fDiIntelligence. India was the strongest performing country with a 21% growth in FDI projects in 2011, following just 1% growth in 2010.  India and China achieved an increase in capital investment of 15% and 3% respectively.

Middle East and Africa FDI growth affected by Arab Spring

The Middle East and Africa (MEA) attracted a total of 1530 projects, according to a report released by fDi Intelligence. Capital investment was down slightly by 1% and job creation up by 3%. The top 10 countries for FDI attracted 64% of projects and capital investment, and 54% of jobs created.

California, New York, Ontario and Texas leading North American destinations for FDI

The Canadian province of Alberta and the US states of New Jersey, Massachusetts and Pennsylvania have posted the most impressive growth figures in FDI in a report released by fDiIntelligence. Alberta recorded a 54% growth in FDI projects in 2011, New Jersey followed closely with 53%, Massachusetts (38%) and Pennsylvania (29%).

Brazil continues to dominate FDI  in Latin America and Caribbean

Brazil dominated FDI in the Latin America and Caribbean region in 2011, attracting 491 projects – 36% of the total number in the combined region – last year, according to a report released by fDi Intelligence.

more

fDi in the News

September 

15th September 2014

DAFZA is Ranked First Globally by the Financial Times' fDi Magazine

Considered the only reputed Free Zones Rankings around the globe, fDi Magazine rankings are based on several criteria such as outstanding perfor­mance, growth and expansion plans, and presence of high growth industries." Dr. Al Zarooni added "The key objective of participating in the Global Free Zones Ranking is to benchmark our performance with the world renowned Free Zones and determine our position in the Free Zones world map."

August

August 1st 2014

Mauritius ranks in top 5 source countries for outbound FDI in Middle East & Africa

This clearly demonstrates the success of the island economy’s efforts in positioning itself as a preferred financial hub for investments into Africa, as well as Asia. The Financial Times released the fDi Report 2014 in its fDi intelligence publication to show an overall increase in projects out of Middle East and Africa, such that FDI grew 21.81% over 2012 to reach a total of USD 48.02 billion. However, project numbers and job creation declined by 11.54% and 26.41% respectively. The UAE remained the leading country in the MEA region for outward FDI with USD 14.68 billion capital investment accounting for 30.56% market share, followed by Kuwait with USD 10.73 billion capital investment and 22.35% market share.

July

July 21st 2014

FDI into western Europe declined between March and May 2014

fDi Markets says that in March, 228 foreign companies invested in 254 projects in western Europe, spending $11.34bn and creating 20,458 jobs. In April, the number of new projects dropped to 249 by 217 companies, and continued to fall to 188 projects by 164 companies in May. Capital investment dipped to $5.63bn in April, down 50.4% from March. There was a slight rise in May, with a capital investment of $6.21bn.

June 

June 11th 2014

Budapest hits the top of fdi charts as hungarys economy strengthens

Washington along with her appreciation for increased investment from the U.S. as well as from Germany and Russia. Instead of having to take her word for it, the dozen attendees at a breakfast meeting at the World Trade Center Atlanta in Buckhead learned that the Financial Times Group’s fDi Magazine named Budapest, Hungary’s capital, as the most attractive Central and Eastern European city for foreign direct investment (FDI) in 2014. Wroclaw and Katowice, Poland, were ranked second and third in the category.

June 10th 2014

Financial Times’ FDi Magazine recognises Jafza the Best Free Zone in the Middle East for large multinationals

Salma Ali Saif Bin Hareb, CEO of Economic Zones World and Jafza, commenting on the fDi awards said: “We are delighted to be recognized as fDi Free Zone of the Year 2014 for “Large Tenants” – Middle East and North Africa, as well as, fDi Free Zone of the Year 2014 for “Large Tenants” – United Arab Emirates. The awards reaffirm Jafza’s unique position as the most favoured investment destination for large multinationals across the world. I attribute Jafza’s remarkable achievements to our most committed and efficient team that continues to help Jafza maintain its invincible leadership status today and the times to come.” 

June 9th 2014

DMCC Free Zone leads the way for MENA and UAE SMEs

Dubai, UAE; 9 June 2014: DMCC , the Government of Dubai Authority with a mandate to enhance Dubai's position as a global gateway for commodity trade and enterprise, has been named by fDi Magazine as Free Zone of the Year for SMEs - Middle East & Africa and Free Zone of the Year for SMEs - UAE in their Middle East Free Zones of the Year rankings and awards for 2014 / 2015.

May 

May 29th 2014

KenInvest puts 9-month investor inflow at Sh90 billion 

It now wants the law establishing the authority's amended to compel all new foreign businesses to register with it to ensure close and timely monitoring of trends in underperforming foreign direct investments. He said it was “tricky” to track FDI inflows, a situation that has forced it to subscribe to fDi Intelligencea London based bimonthly magazine. The Magazine's data puts Kenya's FDI inflows year to date at Sh29.97 billion($341.2 million).

May 22nd 2014

Illinois falls as a destination for foreign investment

Ontario, Texas, California, Quebec and Louisiana took the top five slots for attracting "greenfield investment," or new projects or major investments by foreign investors, according to the fDi Report, an annual assessment based on the fDi Markets database of the Financial Times. The report ranked states by the amount of capital investment, rather than number of projects, as had been the case in previous years. So they are not apples-to-apples comparisons to 2012 and 2011, when Illinois was No. 8 and No. 9, respectively.

May 19th 2014

Africa’s 15 hottest investment zones

10. Tangier-Tetouan, Morocco
Tangier, a city in northern Morocco, is home to the Tangier Free Zone which was ranked in sixth position in fDi Intelligence’s Global Free Zones of the Future 2012/13. “An extended metropolitan region is growing around Tangier, which has become North Africa’s largest container port.”

11. Algiers, Algeria
Algiers is a province in Algeria and holds the country’s capital of the same name. EY ranks the area in 11th position in Africa, with a share of 1.9% of FDI projects between 2007 and 2013.

May 7th 2014

Ireland in top 10 for global FDI inflows in 2013 -- it's nothing to brag about

fDi Intelligence, a unit of the Financial Times, provides project data to UNCTAD and in respect of 2012 it put the level of new projects (in respect of existing firms and new) at 812 in the UK and 147 in Ireland. The chart here shows that jobs in FDI exporting firms in Ireland in 2013 were below the level in 2000 -- 13 years ago -- despite a 22% rise in the overall size of the workforce.

May 6th 2014

The benefits of doing business in free zones in Serbia

fDi Intelligence, the largest centre for assessing foreign direct investments worldwide, has ranked two Serbian free zones, Pirot and Zrenjanin, 41st and 48th respectively on the list of 50 most attractive zones for foreign direct investments in the world. How do free zones in Serbia operate in practice? If you ever find yourself in a free zone, this should be immediately apparent to you, as it must be clearly marked as a free zone, particularly at entrances and exits, and river-side as well, if the zone has river access.

more

Media Contacts

Editor

Courtney Fingar
T: +44 (0)20 7775 6365
E: courtney.fingar@ft.com 

Marketing Manager

Dino Ribeiro
T:  44 (0)20 7873 3964
E: dino.ribeiro@ft.com

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fDi Report 2015

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