Investment hotspots
Look beyond the obvious business hubs
WORDS: HUW LAINGTREE
ILLUSTRATIONS: NILS DAVEY
EDINBURGH, SCOTLAND
SCOTLAND’S REPUTATION AS A GLOBAL FINANCIAL CENTRE REMAINS STRONG. Over half of the world’s top 20 financial organisations have operations in Scotland, with a critical mass of activity in and around Edinburgh. Add supporting services (lawyers, accountants, financiers) and you see why investing here makes sense. “The city has a very low unemployment rate,” says city councillor Tom Buchanan, who leads the economic development committee. “When the financial crisis hit last year, many has a very low unemployment rate,” says city councillor Tom Buchanan, who leads the economic development committee. “When the financial crisis hit last year, many companies saw opportunities to gain access to a highly skilled workforce at a good rate.” Buchanan also cites the city’s high hotel occupancy ratio, increasing airport traffic and resilient construction programmes as signs of the city’s quick economic recovery.
Edinburgh’s scientific and technological reputation is equally impressive, with worldclass universities and research institutions operating inside the city.
Barry Shafe of local enterprise initiative Edinburgh Science Triangle says: “Scotland is widely regarded in the life sciences community as falling within the top five in the world in terms of advanced computing or informatics. Edinburgh is the best in Europe, on a par with MIT and Stanford.”
The Edinburgh Science Triangle is helping to put this knowledge base to commercial use with its seven science parks dotted around the city.
All sites are within 30 minutes of each other, the centre, the airport and all of Edinburgh’s acclaimed universities and research institutes. From cutting-edge computing through to the latest biotech developments, the future lies in Edinburgh.
www.edinburgh-inspiringcapital.com
www.edinburghsciencetriangle.com
COPENHAGEN, DENMARK
This Scandinavian nation remains one of Europe’s most competitive states. Its currency is stable and its economy is reassuringly diverse.
From a technological point of view, Copenhagen is also ahead of the pack. Last year IBM and the Economist Intelligence Unit ranked it best in the world for e-readiness in an annual survey of the world’s largest economies.
A net exporter of food and energy, it’s also a leader in renewable technologies: 20,000 Danes work in the industry and Danish companies lay claim to around 40% of the world market. Both corporate and expatriate tax levels remain low, at around 25%.
Consider its great road and air connections and the free relocation assistance available from Invest in Denmark, and Copenhagen certainly begins to look like a smart choice, for both you and your employees.
A recent OECD report said a large proportion of Danes – 90.1% – are happy with their quality of life. Would you care to join them? www.investindk.com
RUGBY, ENGLAND
Under an hour from London, less than 30 minutes from Birmingham International and home to a highly skilled and diverse workforce, Rugby in Warwickshire remains a smart place to do business.
A number of new developments are under construction in this picturesque market town. Watch out for a selection of great new office complexes, two new hotel developments, as well as much improved traffic management, and a Centre of Excellence College, which sets out to nurture the town’s nascent environmental technologies industry.
Add local attractions, such as the Cotswolds, Stratford-upon-Avon and Kenilworth Castle, and the great motorway links and you can appreciate why everyone from high profile public sector bodies like the General Social Care Council, through to successful private ventures, such as Stena Lines, call Rugby home. www.rugby.gov.uk
DAMASCUS, SYRIA
Nestling to the west of Asia, on the east coast of the Mediterranean, Syria commands a strategic trading point between Europe and the East.
While it might be known for its oil, tourism and agriculture, the government has implemented economic reforms more recently, freeing up its financial services.
“In barely four years,” says Syrian Deputy Prime Minister Abdullah al-Dardari, “we have passed nearly 1,000 laws on liberalisation of trade, investments, competition, dismantling monopolies, authorising private banking and insurance, opening a stock market, training key personnel: in fact an entire legal framework for the economic life of the country.”
Cutting the red tape has certainly helped: in March the Damascus Stock Exchange began trading for the first time.
With a secular government, a secure society and an abundant, well-educated work force, Syria offers low risks and great returns.
CAIRO, EGYPT
Over the past few years, the Egyptian government has created as fertile an environment for investors as the flood plains of the Nile.
Four years ago, personal and corporate tax rates were cut, energy subsidies were reduced, and several public enterprises were privatised. In response, the Egyptian economy bloomed.
Now key sectors such as textiles, IT, oil and gas, as well as chemical production, and generic pharmaceutical manufacturing, are thriving.
Currently, US aid only accounts for 1% of the country’s GDP, and with an increasingly stable state and economy, it looks as if that share will fall even further. The country’s natural gas exports are proving to be highly lucrative, and increased investment in its sea, land and railway infrastructure means Egypt can expect to draw in even more capital over the coming years. Small wonder, then, that the ancient African nation is beating European economies when it comes to overcoming the economic downturn. The Egyptian economy expanded by 4.7 per cent during the fiscal year to June, beating many forecasts.
Now, its oldest trading conduit, the Nile, may also rise again. A combined public and private investment drive has gone towards dredging, renovating and the building of six new ports in the waterway, which should ease the country’s congested roads, revive river transportation, and stimulate trade between the nations which line the river’s banks.
BAKU, AZERBAIJAN
Rich in oil and gas reserves, with a stable government, good international ties and a great geographical location, Azerbaijan serves both Russia and Europe’s industrial demands.
Gaining independence during the 1990s, Azerbaijan was quick to integrate itself into a web of international organisations, participating in the Council of Europe, OSCE, Commonwealth of Independent States, GUAM (Georgia, Ukraine, Azerbaijan and Moldova alliance), Black Sea Economic Cooperation, and the Organisation of the Islamic Conference.
Having grown its economy at an incredible rate over the past few years, Azerbaijan is seeking to assert its position not only as an energy supplier, but also the leading logistics hub for the Caspian region. The nation’s supporters cite Baku’s enviable features (it has the region’s largest sea and air terminal) as well as its links with Asia, the Russian Federation and Europe as reasons to invest in the country.
As a part of the county’s development strategy, the Azerbaijan Export and Investment Promotion Foundation (AZPROMO) serves as a “one-stopshop” commercial guide for international businessmen and investors by providing expert knowledge of investment and export opportunities and market-related information to the newcomers to the Azerbaijani market. Look out for their business forums in Tel Aviv and office in Tbilisi. www.azpromo.org
