financial hubs development

7 Financial District, St Petersburg 8 Shanghai Tower 9 La Défense, Paris

7 8

and countries would like a strongly developed financial centre. The financial industry is concentrated in a couple of cities but there’s a whole tier of cities that are trying to change this.” He labels China as “a giant market” and cities Shanghai as a

standout example of a financial centre in an emerging city. “I think what’s happening in Shanghai is absolutely fascinating – the modern Pudong area has established itself as the financial centre, overtaking the historic financial centre on the Bund. “Shanghai has been though a lot of iterations but it seems

EMERGING HOTSPOTS

Mulcahey states that the top two financial centres, London and New York, have an inherent advantage when it comes to attracting businesses. “The two world leading financial centres are in established markets and that’s due to the facilities they offer as well as the historic association with various institutions or banks. If you’re looking for a financial specialism, whether it’s insurance or currency trading, they will be found in these locations. These places have an in-built competitive advantage which makes it much harder for the emerging financial centres to compete.” Despite the challenges, Mulcahey states that emerging

markets are still attractive to international financial com- panies. “There’s legitimacy to financial centres in established and emerging markets. Some markets are rapidly advancing as financial centres, and that has a lot to do with their trading power. I think certain emerging markets are gaining a huge amount of interest and are potentially very attractive to many financial companies.” Mulcahey explains why emerging economies are keen to

develop their financial industries. “Financial companies are potentially lucrative in terms of tax revenue and most cities

they are getting it right with the next generation of development in Pudong. I don’t think the area was planned comprehensively as a real district of a city, judging by the quality of the streets and the spaces between the buildings. But projects such as the Shanghai Tower, which will be the tallest building in China, are set to reinvigorate Pudong as a real part of the city with hotels, retail and a public realm.” He also points out that the Middle East has long been a destination of choice. “Financial companies want

8

to locate there because of the liquidity due to oil and gas. But the problem, historically, was finding a suitable location. Thankfully, in the case of Dubai, the financial companies can now base themselves in DIFC – a district where like-minded businesses are located.” Mulcahey stresses that DIFC is the benchmark financial centre in the Middle East. “DIFC stands out in the

Middle East as an area that can be labelled a primary central business district. Its rental value is testament to its status as one of the primary business destinations in the region. The way it has been managed, developed and planned reflects what the tenants are looking for – a district where you can actually move around on foot with a good balance between restaurants, retail, residential and commercial units.” But he suggests that Dubai and DIFC shouldn’t rest on their laurels just yet. “There are a number of upcoming financial centres in the region which will soon be hot on DIFC’s heels. The position of the preeminent financial centre in the Middle East is still open between Dubai, Abu Dhabi, Bahrain, and Riyadh. Any one of those cities could fulfil the role.” 

There’s legitimacy to financial centres in established and emerging markets. Some markets are rapidly advancing as financial centres, and that has a lot to do with their trading power

26 /

/apr-may 2010

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