Madrid, a business friendly economy

The Madrid Region

A “BUSINESS-FRIENDLY” ECONOMY

The Madrid Region 7 REASONS TO INVEST AND DO BUSINESS IN MADRID

SPAIN’S ECONOMIC ENGINE

INTERNATIONAL BUSINESS CENTER

HIGHLY-QUALIFIED HUMAN CAPITAL

GEOSTRATEGIC LOCATION

LEADERSHIP IN INNOVATION

EXCELLENCE IN SERVICES AND A SOLID INDUSTRIAL BASE

UNIQUE QUALITY OF LIFE

Spain’s Economic Engine

LEADER IN WEALTH AND JOB CREATION

Spain’s Economic Engine FACTS & FIGURES SIZE 8,028 Km2 (1.6% of Spain)

POPULATION 6.5 million (14% of Spain)

GDP 2011 € 216,669 (highest among Spanish regions, 19.7%)

GDP PER CÁPITA € 32,616 (Spain’s highest)

GDP PER SECTOR 2011

Source: Madrid Regional Statistics Institute; National Statistics Institute and Eurostat.

Construction 8.4%

Industry 9.4%

Services 82.1%

Agriculture 0.1%

Spain’s Economic Engine

DYNAMIC, COMPETITIVE AND INTERNATIONAL BUSINESS ENVIRONMENT FAVORABLE BUSINESS CLIMATE Policies to make setting-up businesses easier and reduce bureaucracy.

COMPETITIVE Attractive tax system, as well as competitive operational and labor costs.

INTERNATIONAL Preferred location for both foreign and Spanish multinational companies.

INTERNATIONAL AGREEMENTS Avoiding double taxation, and promoting foreign trade and investment.

International Business Center

WE SPEAK THE LANGUAGE OF BUSINESS

International Business Center

BUSINESS DECISION-MAKING CENTER IN SPAIN OVER 500,000 COMPANIES OPERATE IN MADRID The Madrid Region is a decision-making center for multinationals. Here are some examples: Latin America: Alcatel, British Telecom, Jones Day, Qualcomm, Software AG, Wincor Nixdorf, FatWire, Micro Focus, Putzmeister. Europe: BP Solar, Gigatrust, IBM, inVentiv Clinical Solutions, Alpargatas, Reynolds Ventures. Southern Europe: Microsoft Ibérica, Altran, Peribit Networks, THQ. EMEA: Thyssenkrupp Electec, ICP Solar Technologies, Pemex.

LEADING SPANISH REGION IN GOODS AND SERVICES EXPORTS

International Business Center

WHEN INVESTING IN SPAIN, MADRID IS #1

Spain ranks 8th among the world’s largest recipients of FDI

Madrid Incoming FDI 2007-2011: € 72,071 millions

Source: Datainvex, Ministry of Economy and Competitiveness of Spain

Madrid 67%

Catalunya 13%

Rest 20%

Highly-qualified human capital

READY TO MAKE YOUR INVESTMENT GROW

Highly-qualified human capital AN OPEN, DIVERSE AND TALENTED SOCIETY QUALIFIED HUMAN CAPITAL Madrid ranks 2nd in terms of rate of active Population in Spain (65%) and excellent human capital. 42% of the active population has a university degree (28% in the EU).

CULTURAL DIVERSITY 26% of the population in the Madrid Region comes from elsewhere in Spain. Almost 20% of its population are foreigners, representing over 180 different nationalities.

YOUNG AND READY 245,723 undergraduate students (51,341 in private universities) Over 11,000 undergraduate foreign students per year.

Geostrategic Location

WHERE ALL ROADS MEET

Geostrategic Location MADRID, THE MEETING POINT

AIR TRANSPORT Madrid Barajas airport: - Ranks 2nd in Europe in terms of capacity. - Ranks 12th in the world in terms of passengers/year. - 12 km away from the city center.

ROAD AND RAIL INFRASTRUCTURE • Madrid is the center for the radial rail and road transport systems. • 2,665 km of AVE railway tracks. • World-class subway (over 290 km long and 300 stations). • A road network of over 3,340 km.

LOGISTICS The largest logistics surface area in Spain: 24 million m2 . 75% of logistics companies (both Spanish and international) are headquartered in Madrid.

Geostrategic Location

MADRID AND LATIN AMERICA: A COMMON LANGUAGE AND CULTURAL TIES

POPULATION 49% of Madrid’s foreign population comes from Latin America.

INVESTMENTS Spain is the 2nd biggest foreign investor in Latin America, after the US.

ENCLAVE Connections from Madrid to Latin America: 28% of direct flights from Europe depart from Madrid-Barajas airport. Madrid hosts the headquarters of Latin American international institutions and companies with interests in the EU, as well as European companies doing business with Latin America.

Leadership in Innovation

MADRID IS AT THE FOREFRONT

Leadership in Innovation MADRID, R&D HUB

EFFORT R&D expenditure: 2.02% of GDP (EU 2.00%, Spain 1.39%). (1).

HIGH TECHNOLOGY Ranking 2nd among EU-27 regions in number of high-tech jobs.(2). 85,740 professionals dedicated to R&D Madrid is home to 43 of the 132 Spanish National Research Council’s research centers and institutions . Leading Spanish region in high-tech exports. (3).

16 universities and 3 of the world’s top 10 business schools: IE Business School, IESE and ESADE.

IN THE CLASSROOM

Fuentes: (1) INE 2009 (2) Eurostat, Regional Employment in High Tech Sectors, 2011 (3) DATACOMEX, ICEX 2010.

Leadership in Innovation MULTINATIONALS, R&D CENTERS AND CENTERS OF EXCELLENCE IN MADRID

Excellence in Services and a Solid Industrial Base

AN ECONOMIC SYSTEM DESIGNED FOR SUCCESS

Excellence in Services and a Solid Industrial Base SERVICE SECTOR: 2.4 MILLION EMPLOYEES

In Spain, Madrid leads in engineering: the Region brings together 39% of companies, 75% of turnover and 47% of total national employment. Madrid ranks 6th in the world in international symposiums and conferences. After hosting14,095 events and 90 international fairs in 2010, in 2011 Madrid held 130 international fairs and has received 53,800 delegates from all over the world. 10.5 million tourists in 2011. World reference in PPP (Public-Private Partnership) financed projects.

Excellence in Services and a Solid Industrial Base

COMPETITIVE INDUSTRY 7 of the 50 world’s largest infrastructure companies are located in Spain, 5 of these in Madrid. The Madrid Region is the main center for the aerospace sector in Spain. It concentrates 45% of the domestic ICT market. Spain ranks 1st in the world in solar thermal energy and 3rd in wind power capacity. Madrid is the 2nd largest industrial region in Spain, producing a wide variety high-tech goods: pharmaceuticals, electronics, transportation, etc.

Unique Quality of Life

AN ENRICHING ENVIRONMENT FOR PEOPLE

Unique Quality of Life AN EXCEPTIONAL PLACE TO LIVE WEATHER Mediterranean climate.

SAFETY Madrid is the 2nd safest city in Europe.

EDUCATION Offers bilingual education at public schools and a broad range of international private schools.

HEALTH SERVICE A universal health care system with over 86 hospitals.

CULTURE & LEISURE Wide cultural heritage, over 80 museums, The “Golden Mile of Art”, sports facilities, world-class cuisine and shopping.

THANK YOU C/ Suero de Quiñones, 34 Madrid 28002 Tel: +34 917 450 127 Fax: +34 914 110 913 [email protected] promomadrid.com

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