RFNY2013: Invest In Moscow - City For Business
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Moscow: City for Business Sergey Cheremin Minister of Moscow City Government, Head of Department for External Economic and International Relations of Moscow Moscow Investment Presentation in New York City, October 28, 2013
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Transcript of RFNY2013: Invest In Moscow - City For Business
Moscow: City for Business
Sergey Cheremin
Minister of Moscow City Government, Head of Department for External Economic and International Relations of Moscow
Moscow Investment Presentation in New York City, October 28, 2013
Moscow Overview
12 million Population:
$ 357 billion GDP:
2,511 sq. km Area:
Geographic location:
12 districts Administrative division:
$ 57 billion City budget:
Center of European Russia
Department for External Economic and International Relations of Moscow 2
$ 4.2 billion FDI:
$ 19.6k Average annual salary:
Moscow Means Gateway to Europe and CIS
Department for External Economic and International Relations of Moscow
§ Diversified economy § Healthcare and educational facilities § Excellent entertainment opportunities § Safety: better crime rate then in BRICS capitals § Green city: 200 parks
§ 3 international airports with annual flow of 56.5 million passengers § Modern office buildings: 11.9 million m2 § 280 shopping centers and malls § Technology penetration: Wi-fi connection - 60%, 3G Internet - 90% city coverage
3
Moscow Means Regional Finance Center
Department for External Economic and International Relations of Moscow 4
■ 90% of international bank headquarters of and financial institutions in Russia
■ 80% Russian financial flows
■ 50% Russian banking capital
■ 90% of stock exchange trade volume in Russia
Moscow Means the Leading Economic Center in Russia
Department for External Economic and International Relations of Moscow 5
1 396
562738
Moscow Saint Petersburg Russia
538
112262
Moscow Saint Petersburg Russia
8 052
3 4334 466
Moscow Saint Petersburg Russia
Monthly net income per capita, $
FDI per capita, $
Retail trade volume per capita, $
60%
79%
57%
In the next few years, Moscow is going to host and organize some of the largest sport events in the world.
Moscow Means the Center for International Events
Department for External Economic and International Relations of Moscow
2014 Olympic Winter Games
2016 Ice Hockey World Cup
2017 FIFA Confederations Cup
2018 FIFA World Cup
Winter Olympics 2014 in Sochi. The Moscow Government and Sochi 2014 Organizing Committee have signed a cooperation agreement. It is not only an agreement to work together, but also a symbol of continuity between the 1980 Moscow Olympics and the 2014 Sochi Olympics. Moscow will host the start of the Olympic torch relay in Russia, and is also taking an active part in developing infrastructure for the Olympics.
2016 World Hockey Championship. For the third time, Russia will host World Hockey Championship. In Moscow, matches will take place in Megasport Arena.
2017 FIFA Confederations Cup. Moscow is among four cities that will host Cup tournaments.
2018 World Cup Championship. For the first time, Russia will host the finals of the FIFA Championship. The finals will take place in Luzhniki Stadium in Moscow.
6
Moscow Equals Smart City
Department for External Economic and International Relations of Moscow
The Moscow Government supports innovation by establishing an innovative infrastructure as well as offering tax breaks and financial support to innovative businesses.
Slava (2.8 ha) Strogino (2.1 ha) MosGorMash (4.5 ha)
Moscow (31 ha)
Zelenograd (60 ha) Rudnevo (25 ha)
Zelenograd (146 ha)
6-7 thousand new jobs created annually
Technopark Technopolis Industrial Park Special Economic Zone
Tax breaks for management companies: Tax breaks for technopark, technopolis and industrial park residents:
0 – 1.1% property
0.01 – 0.03% land
0% property
13.5% income
to create and develop technoparks
for securities offerings (2/3 cost)
to equip and operate innovation centers (60% cost)
to create and develop a technopolis / industrial park
Financial support to cover loans for innovative activities:
Up to $3 M
Up to $ 0.2 M
Up to $ 0.3 M
Up to $ 10 M
Recipients: management companies
Recipients: small innovative businesses
Recipients: Creative Innovation Centers for Youth
Recipients: management companies
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By the end of 2012, the unit value of foreign investments attracted to Moscow amounted to 52.7 percent of all foreign investment attracted into Russia in 2012.
Moscow Means the City for Investment
Department for External Economic and International Relations of Moscow
FOREIGN INVESTMENTS ATTRACTED TO MOSCOW IN 2012 million USD
81 555 total volume of investment
76 848
4 233
475 111 448
accumulated FDI
other accumulated investment
accumulated indirect investment
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Most Attractive Cities in Europe for FDI
Department for External Economic and International Relations of Moscow
London 49% Paris 34% Berlin 20% Frankfurt 11% Munich 8% Barcelona 7% Amsterdam 6% Moscow 6% Brussels 6% Prague 4% Milan 4% Warsaw 4% Stockholm 4% Zurich 4% Hamburg 3%
Source: Ernst & Young’s European attractiveness survey 2013.
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Geographic Distribution of Foreign Investments Attracted to Moscow in 2012, millions of USD
Department for External Economic and International Relations of Moscow
Other countries: 3291,3 India: 101,8 UAE: 160,9
Japan: 162,1 Sweden: 181,8 Vietnam: 186,0 S. Korea: 237,2 Finland: 252,5 Austria: 386,4
Gibraltar: 410,1 Virgin Islands: 444.4
USA: 591,5 China: 903,0
Ireland: 1615,9 Germany: 2717,5
France: 2896,3 Luxembourg: 3360,7
Cyprus: 6058,0 Great Britain: 6834,6 Netherlands: 7384,2
Switzerland: 84727,0
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Russian Accession to the WTO
Department for External Economic and International Relations of Moscow 11
Moscow Expectations:
Ø Improving existing conditions for access foreign markets for Moscow products. Ø Providing non-discriminatory treatment for Moscow exporters. Ø Access to international dispute settlement mechanism. Ø Creating a more favorable climate for foreign investments as a result of changes to the legal system in accordance with WTO standards. Ø Expanding opportunities for investors from Moscow in WTO member-countries. Ø Creating conditions for increasing the quality and competitiveness of domestic production as a result of increased flows of foreign goods, services, and investments to the Moscow market. Ø Improving Moscow’s image as a competent international trade participant.
August 22, 2012 – Russia becomes a member of WTO. We are opening our markets to create a modern and competitive economy.
Import-weighted average customs
tariff (current rate)
WTO bindings, import-weighted average
rate
Before After
All goods 10.29% 11.85% 7.15%
Agricultural goods 15.63% 15.18% 11.28%
Non-agricultural goods 9.39% 11.26% 6.41%
Cities Budget Parameters, $ billion
Department for External Economic and International Relations of Moscow 12
6
65,9
17
51
6,1
65,9
18,9
57
30,2
60,3
4,4
30,2
67,4
4,6
Berlin
Shanghai
Paris
Madrid
New York
London
Moscow
Income Expenditures
2012:
Growth is Bound to Continue in Moscow
Department for External Economic and International Relations of Moscow
VISION 2025 – INVESTMENT SUPPORT
$ 350 billion (GDP)
$ 490 billion (GDP)
2012
Other Retail FS and business services Manufactoring Transport ENR Construction
2025F
Drivers ■ Maturing consumer ■ Human capital ■ Innovation / SME ■ Infrastructure
+40%
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Drivers of Substantial Growth (1/4)
Department for External Economic and International Relations of Moscow
Source: Brookings institution, EIU
Infrastructure Innovation Human capital Maturing consumer
Population, $ million, 2012 GDP per capita, $ thousand, 2012
Real disposable income per capita, $, 2012
Frankfurt
Moscow
Tokyo
London
Sao Paolo
Mexico
Mumbai
Shanghai 24
Frankfurt 51,6
Sao Paolo
Moscow 44,7
Tokyo
Shanghai
41,4
London 52,0
23,7
Mexico 19,9
Mumbai 5,9
20,1
Germany 26 460
Russia 7 210
Japan 28 390
UK 26 000
Brazil 7 470
Mexico 6 350
India 1 110
China 2 400
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Drivers of Substantial Growth (2/4)
Department for External Economic and International Relations of Moscow
Source: Rosstat, Oxford Economics, KPMG analysis
Maturing consumer Infrastructure Innovation Human capital
MOSCOW HAS AN EXCELLENT HUMAN CAPITAL BASE
Retain & attract human capital Develop human capital base
Age structure, 2012 % population with higher education, 2012 City R&D potential
■ 42% of Russian researchers work in Moscow
■ 40% growth in R&D investments over the 5 last years
■ > 1.2 million of students
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Drivers of Substantial Growth (3/4)
Department for External Economic and International Relations of Moscow
Source: Moscow Government, Rosstat
Human capital Maturing consumer Infrastructure Innovation
■ High tech sector focus
− Zelenograd Technopolis
− Moscow Technopolis
− MosGorMash Technopark
− Slava Technopark
− Strogino Technopark
■ Academy of Science
− 470 institutes
− 55,000 researchers
■ Special innovation infrastructure
− Business incubators
− Coworking centers
SME Loans, $ million
+27%
2012 2011 2010
$ 387 million in state
guarantees for SME in 2012
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Drivers of Substantial Growth (4/4)
Department for External Economic and International Relations of Moscow
Innovation Human capital Maturing consumer Infrastructure
2012
$9 billion
7%
Social infrastructure
Other
Road infrastructure
Utilities
Infrastructure investment, 2012, $ billion Investment needed 2012-2030, $billion
>$100 billion investments
needed by 2030
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Emphasis Will Be Placed on Creating Comfortable Business Environment
Department for External Economic and International Relations of Moscow 18
INVEST IN MOSCOW
Department for External Economic and International Relations Address: 13, Tverskaya str., Moscow, 125032 Tel.: +7 (495) 633-68-66 Fax: +7 (495) 633-68-65 www.dvms.mos.ru www.investinmoscow.ru E-mail: [email protected]
