The Greater Paris Investment Agency · Strategic partnerships Regular destinations. MONTREAL NEW YORK BOSTON RIO LONDON PARIS BAHRAIN MOSCOW DUBAI MUMBAI ... Paris is the 2nd largest

The Greater Paris Investment Agency

Pierre SIMON Chairman

New Investment opportunities in the Greater Paris For Islamic Finance Investors

London, 31 october 2012

Presenter

Presentation Notes

Ladies and Gentlemen, Presidents, dear friends, Thank you all for coming to hear about the new investment opportunities offered by the Greater Paris to Islamic Finance Investors.

The Greater Paris Investment Agency New Opportunities for IF investors

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Promoting Investment Assets

►Road-shows : USA, Japan, China, India, Korea, Gulf Countries, Brazil and Turkey.

Fostering Attractiveness

►Lobbying : transportation, R&D, taxation, business environment

THE GREATER PARIS INVESTMENT AGENCY

20 years of success A non-profit association created by the Paris’ Chamber of Commerce in 1991

StrategicStrategic partnershipspartnerships

RegularRegular destinationsdestinations

MONTREALMONTREAL

NEW YORKNEW YORK

BOSTONBOSTON

RIORIO

LONDONLONDON

PARISPARIS

BAHRAINBAHRAIN

MOSCOWMOSCOW

DUBAIDUBAIMUMBAIMUMBAI

JAKARTHAJAKARTHA

BEIJINGBEIJING

SEOULSEOUL

TOKYOTOKYOISTANBULISTANBUL

Presenter

Presentation Notes

A few words about the Greater Paris Investment Agency, which I have the honor to chair. Business Ambassador of Greater Paris Area, it was created by the Paris Chamber of Commerce and dedicated for almost 20 years to attract foreign investments in the French Capital.


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Aéroports de Paris, Air France KLM, Altran technologies, Bal du Moulin Rouge, Banque Audi Saradar, BNP Paribas, Bouygues Bâtiment Ile-de-France, Cabinet Caillau Dedouit & associés, Cabinet Fidal International, Caisse des Dépôts et Consignation Ile-de-France, Chambre de commerce et d'industrie de Paris, Chambre de commerce et d'industrie de Versailles, Val d'Oise/Yvelines, Chambre régionale de commerce et d'industrie Paris Ile-de-France, Cisco, Clifford Chance, Colas S.A., Colony Capital Europe, Comexpo Paris, Commissariat à l'énergie atomique (CEA), Credit Agricole CIB (Calyon), Deloitte&Touche, Ecole Normale de Musique de Paris, EDF, Ernst&Young, Etablissement public pour l'aménagement de La Défense (EPAD), Fédération nationale des travaux publics, Fédération régionale des travaux publics, Fives, FNAIM Paris et Ile-de-France, France Amériques, France Télécom, G7 Entreprises, Galeries Lafayette, GDF – Suez, Generali, Gide Loyrette Nouel, GMC, Hermès, ICADE, GP, JC Decaux SA, Klepierre, KPMG, La Poste, LG, Marne-la-Vallée Epamarne/Epafrance, Mazars, McKinsey & Company Inc., Medef Ile-de-France, Medef Paris, Pernod Ricard, Port Autonome de Paris, Présence, PricewaterhouseCoopers, RATP, SILIC, SNCF, Stehlin et Associés, Total, Unibail-Rodamco, Vinci Construction France - Ile-de-France, Viparis, Wipro Technologies…

Our Membership : Global & Major Cies

100+


Presenter

Presentation Notes

Nowadays, the Greater Paris Investment Agency gathers more than a hundred of the most successful international companies based in Paris. Their membership is the guarantee of our independence.


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Manama

Global

Regional

Local

Niche hub

Specialized on one or several related IF business

segments

Multi - business hub

Developed diversified IF model covering most of

business segments

Full - fledge Hub

Full IF ecosystem

Global

Regional

Local

Niche hub

Specialized on one or several related IF business

segments

Multi - business hub

Developed diversified IF model covering most of

business segments

Full - fledge Hub

Full IF ecosystem

Geographical scope

IF business scope

Dubai/Abu Dhabi

Jeddah

Kuala Lumpur

Singapore

Luxembourg

Istanbul Kuwait

London

Frankfurt

Paris

POSITIONING PARIS AS AN IF HUB high potential for funds management and retail banking attractive destination for investments in real economy

Presenter

Presentation Notes

The Greater Paris Investment Agency conducted in exclusivity with Bain&Company a Global overview of the Islamic finance market and financial hubs. Paris is naturally posed to be a most dynamic place in Islamic finance and the Greater Paris Investment Agency is committed to make it known. Paris has many advantages : the largest Muslim population in Europe a unique connection to the Maghreb and Africa one of the deepest global financial markets with key actors in structuring products open and secure legal and fiscal frameworks But we believe that Paris’ key advantage is to be the leading innovation-driven real economy in Europe.


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Total = US$ 700Bn

Key

Low Medium High

Sophistication of the financial center

Source: The Banker, Bain analysis, Litsearch, Global Financial Centers Index March 2011

POSITIONING PARIS AS AN IF HUB > An alternative hub : still small but sophisticated

Presenter

Presentation Notes

Of course compared to mature Islamic Finance Hub, Paris, like other alternative hubs is still extremely small. But we believe that its sophisticated financial industry will prove a major asset in facilitating Islamic Finance Investments in the next years.


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NYSE-Euronext

Other alliances

Others major stock markets

1st financial market in Euroland 2nd for asset management in the world, after Boston 47% of foreign assets in the leading index (CAC 40)

POSITIONING PARIS AS AN IF HUB > A highly sophisticated financial hub

Presenter

Presentation Notes

Paris is already a very open place. 47% of the leading stock index is owned by foreign investors. And Paris is the second market for asset management in the world, after Boston. For example, Qatari investors acquired 5% of the shared of Total, the major oil company last month and over 1% of the capital of LVMH, the luxury world leader. As you can see, Paris is also at the heart of the largest stock exchange system in the world. Moreover, Paris is the 2nd largest place for asset management in the world after Boston.


1st GDP ($800Bns) among European metropoles (more than Belgium or Denmark)

3rd in the world for the Fortune 500 companies

A powerful, open and highly diversified economy : High-tech, software, automobile, pharmaceutical, finance, green tech…

500 millions consumers within 500 kms 7

OPPORTUNITIES TO INVEST IN A REAL ECONOMY

Presenter

Presentation Notes

But let me tell you more about the real economy in Paris. Paris is not only the Ville Lumière that everyone knows; it is also a world class business capital. It also has the highest GDP among the European metropolises: more than 800 billion US dollars. It even ranks ahead of states such as Switzerland or Belgium. It is the first European location for the top 500 worldwide companies and 3rd in the world after Tokyo according to the magazine Fortune.


CONSTRUCTION

ENERGY

ENERGY

BANKING

UTILITY

CONSTRUCTION

AEROSPACE

TELECOM

INSURANCE

UTILITY

CONSTRUCTION

AEROSPACE

HOTELS

ADVERTISING

UTILITY

CONSTRUCTION

ENERGY

FOOD & DRUG

AIRLINES

NETWORKS

CAR MAKING

COSMETICS

BANKING

UTILITY

ENTERTAINMT

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Presenter

Presentation Notes

Many of the world champion companies based in Paris are naturally issuers of sukuks in traditional Islamic Finance hubs : energy and utility companies. Many of them are now considering to issue sukuks to fund home-based operations as a diversifier for targeted operations. Their excellent ratings make them seductive emitters.


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Example of sukuk emission in Paris (Orasis sukuk)

►photovoltaic stations

►leased to exploitation company

►coupon payment equivalent to 7-8% interest rate

►min. investment €5,000 Source: CIFIE

Presenter

Presentation Notes

A recent example of sukuk emission in Paris concerned photovoltaic stations leased to an exploitation company that would directly supply the national grid operated by EDF. The coupon paid was equivalent to a 7 to 8% interest rate. Investments tickets started from 5,000 euros


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1st R&D EXPENDITURE

- 14.5 billion €/ year - 7,2 % of the European Union’s

1st RESEARCHERS’ CONCENTRATION

- 143,800 researchers - 5th highest in the world - 13.1/1000 employed (4.7 in the Silicon Valley) 33 NOBEL PRIZES : 2007 in Physics; 2008&2011 in Medicine…

PARIS, THE R&D LEADER IN EUROPE OPPORTUNITIES TO INVEST IN A REAL ECONOMY

Presenter

Presentation Notes

But Paris real advantage lies in high techs. Did you know that the Greater Paris is the European leader in Innovation, Research and Development? 14.5 billion euros per year are dedicated to this crucial activity. In Greater Paris you find more than 140,000 researchers. It is the highest concentration in Europe, with 13.1 researchers to every 1000 operational personnel, versus to 4.7 in the Silicon Valley for example. Through the new credit tax scheme, any French or foreign company operating in France will receive a 40% refund on their R&D expenses, up to 100 million Euros. Be also aware that over the last five years, the Greater Paris region has been awarded no less than five Nobel Prizes in physics, chemistry and medicine alone.


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GREATER PARIS, AERONAUTIC WORLD CLUSTER

55,000 staff

1,100 firms

15 €Bns turnover

80% in exports

Commands in 2011: + 27%


Presenter

Presentation Notes

For example, The Greater Paris stands among the leading clusters in the world, with several world leaders headquartered in the Region, like EADS, Thales or the European Space Agency. 55,000 people in 1,100 firms generate over 15Bns Euros in turnover, with an impressive growth rate of 11% this year, driven mainly by exports. 15% of the turnover is invested back in research and development. This explains how technological breakthroughs like the A380 have been turned in commercial successes.


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28,000 researchers

R&D : 15% of turnover (15 €Bns)

excellence in :

-aerodynamic modeling

-high integration electronics

-automatic control equipment

-optoelectronics…

Source : GIFAS

Airbus’ A 380

GREATER PARIS, AERONAUTIC WORLD CLUSTER OPPORTUNITIES TO INVEST IN A REAL ECONOMY

Presenter

Presentation Notes

Paris is effectively the European capital of Aeronautics.


LA DEFENSE

SACLAY ORLY

DESCARTES

PLEYEL LE BOURGET

ROISSY

7 business areas

€33bns. investments

200km new automated

train sublines

20mins to the airports 13

THE GREATER PARIS PROJECT : THE BACKBONE INFRASTRUCTURE

Presenter

Presentation Notes

I have no doubt that the investors’ interest will grow even stronger with the Greater Paris project, a French-government backed project. It is the world’s most important urban economic development project. Its backbone is a 33 billion Euros public investment over the next 15 years. 200 kilometers of new automatic metro lines will be built. Indeed, thanks to sublines, commutation times will be reduced to just 20 minutes between the airports and the city center or between the seven major business centres that concentrate economic activities.


A KING SIZE OFFICE STOCK : 51 Mn m2

1st in Europe, 2nd in the world

Top-of-the-line products

75% International investors

MUNICH

MILAN

MADRID

HAMBURG

AMSTERDAM

BARCELONA

LYON

ROME

DUSSELDORF

FRANKFORT

LONDON

PARIS BRUSSELS

WARSAW

DUBLIN

Source : Jones Lang Lassalle 2011

Highest yield in Europe :

14

0

1

2

3

4

5

6

London Paris Berlin Munich Milan


Presenter

Presentation Notes

The Greater Paris project already creates many new opportunities in real estate. With no less than 51 million square meters, Paris has the second largest office market in the world, after Tokyo but before New York. Up to 60% of these surfaces were bought by international investors, who were attracted by the superior returns. More than 2.1 million square meters in offices were sold in 2011 in Greater Paris despite the crisis. This is four times the size of the London market.


0

2

4

6

8

10

12

14

Lond

onPar

isBer

lin

Mun

ichM

ilan

Mad

rid

Barce

lona

Frank

furt

15

PARIS : AMONG THE LOWEST VACANCY RATES (%)

Top 8 European

Markets

Source : Jones Lang Lassalle 2011


Presenter

Presentation Notes

Combined with a very low vacancy rates…and, as a consequence a lower risk. Indeed Paris offers the highest yield relatively to its size, and the Defense an even higher yield at 6 percent annually.


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INVESTING IN THE GREATER PARIS,

MULTIPLYING RETURNS

+ € 33 Bns public investments

+ € 60 Bns private investments

+ € 500 Bns GDP

2010

2025

Presenter

Presentation Notes

On top of the 33 billion euros of public investments, we can very reasonably estimate that private investors will add at least another 60 billion euros. This amount will be dedicated to innovative infrastructures, businesses and technologies. In itself, it will add two points to the metropolitan growth rate over the next 15 years. With a classic multiplier effect, this will generate another 500 billion euros in GDP over the next fifteen years, doubling the present wealth of the Greater Paris. Paris will be more of an innovation-driven economy, a smart-city and a world-class metropolis once more. I am sure that many of you will be attracted by the outstanding opportunities the Greater Paris project will generate.


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7, rue Balzac – 75008 Paris

+ 33 1 55 65 74 80

www.greater-paris-investment-agency.com

Presenter

Presentation Notes

In a nutshell, it is the right time to invest in the Greater Paris. Thank you. Be warmly welcome to the Greater Paris.

The Greater Paris Investment Agency · Strategic partnerships Regular destinations. MONTREAL NEW YORK BOSTON RIO LONDON PARIS BAHRAIN MOSCOW DUBAI MUMBAI ... Paris is the 2nd largest

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