dubai among top 50 global centers of commerce
MasterCard Worldwide Centers of Commerce Index™ Explores Strategic Role of Cities in Driving Global Commerce
MasterCard Worldwide today held a forum to discuss the findings of a groundbreaking research, the MasterCard Worldwide Centers of Commerce Index™. The study is designed to provide insight and knowledge on how leading cities influence the global economy and perform critical functions that connect markets and commerce globally. Dubai ranks as the top city in the Middle East and is placed ninth out of 20 cities in the Asia/Pacific Middle East and Africa (APMEA) region. Dubai is ranked in 37th place within the world’s top 50 cities that are the hubs of the new worldwide economy.
The Index, developed by a panel of leading experts in economics, urban development and social science from around the world, lists and ranks the top 50 Centers of Commerce based on six measurement dimensions consisting of over 100 data points. It places London first, followed by New York, Tokyo, Chicago and Hong Kong in the top five. Completing the top 10 are Singapore, Frankfurt, Paris, Seoul and Los Angeles. The full report is available at www.mastercardworldwide.com.
Dubai’s ranking positions the city as a leader in the Middle East, offering a strong business climate that supports further development. Dubai scored high in the ‘Legal and Political Framework’ dimension (78.04), the ‘Economic Stability’ dimension (75.63) and the ‘Ease of Doing Business’ dimension (73.76). On a comparative basis, Dubai ranked 16th among the 50 top cities on the Business Center dimension and 29th and 30th on the Financial Flow and Legal and Political Framework dimensions. These rankings reflect the enormous drive by the government of Dubai to be a world-class financial and business centre. The Knowledge Creation and Information Flow dimension represents an opportunity for development, Dubai scores low with an Index rate of 4.24 and is ranked 18th in APMEA and 61 overall.
“A prerequisite for success in today’s global marketplace is an in-depth understanding of how cities are connected and how they influence the worldwide economy. The Worldwide Centers of Commerce program addresses this need by identifying and providing industry-leading insights into the characteristics and commonalities of cities that advance global commerce the most,” said Denzil Lawson, General Manager, Middle East and Levant, MasterCard Worldwide. He continued “Dubai, with a ranking in the top 50 centers of commerce, demonstrates its position as a regional hub. As the city with the highest ranking in the Middle East region, Dubai’s ranking tells an amazing growth story.”
The transformation of cities into global centers of commerce has been fueled in part by rapid urbanization. In terms of population size and economic activities, many cities today are far larger than a significant number of sovereign states and more important than ever before. The research report establishes that today, many of these metropolises are “global cities” that perform critical functions connecting markets and commerce globally. In essence, they are nodes of connectivity through which global commerce can take place.
“The old paradigm was the sovereign state; this is now the age of the city,” said Professor William Lever, Emeritus Professor, Hon Senior Research Fellow of Urban Studies, University of Glasgow and member of the knowledge panel for the MasterCard Worldwide Centers of Commerce Index. “The trend of commerce becoming more knowledge-driven and less tangible has actually elevated the role of today’s cities, positioning them as the hubs of complex circuits that fuel the globalized economy and provide connections through which true global commerce takes place. This research provides valuable insight into the cities that sit at the center of global commerce as well as the factors that are fuelling commerce in each.”
Key Findings
Highlights from the Index include:
• London: The world’s leading Center of Commerce. With a flexible operating environment for business, strong global financial connections and exceptionally high levels of international trade, travel and conferences, London secures the top spot in the Centers of Commerce Index. The city outperforms New York in four of the six measurement dimensions, and scores significantly higher than other European cities.
• National economic factors, market regulations place New York behind London. Once considered the unchallenged financial capital of the world, New York cedes to London a key dimension measuring financial transactions primarily because bond market regulations in New York affect the volume of listed sales. New York’s score is also impacted by the less stable US economy and the more volatile US dollar.
• Tokyo’s powerhouse economy leads to top ranking in Asia Pacific. Tokyo, the leader in its region and number three overall, boasts the Nikkei 225 Index, the world’s leading rate of patent creation, and an air traffic hub second only to Hong Kong.
• Three onetime “Asian Tigers” make the top ten. Hong Kong, Singapore and Seoul all rank among the top 10 Centers of Commerce, with Seoul scoring high marks for its higher education system and patent output, while Hong Kong and Singapore boast top rankings for the strength of their business climate and their prominence in the global financial network. Singapore also rates high for government policies that favor international business and trade.
• Hong Kong & Singapore maintain tight economic rivalry. Hong Kong edges out traditional economic competitor Singapore for fifth placing in the Index. Singapore, which ranks sixth in the Index, had an Index value only 0.37 points less than Hong Kong. This was partly because of the smaller number of equity transactions that took place in the Republic as compared to Hong Kong. Hong Kong also scores better in measures related to its business climate.
• Emerging growth engines, China and India, make their mark. China cements its growing regional importance with three cities represented in the Index - Hong Kong #5, Shanghai #32 and Beijing #46. This is the largest representation of cities from one country within the Asia/Pacific, Middle East & Africa (APMEA) grouping. The Indian city of Mumbai shone in the dimension concerning financial transactions, coming in 10th globally.
• Strong business climate makes Dubai the Middle East leader. The region’s air and cargo traffic hub, Dubai also claims a flexible business climate that makes it optimal for growing companies. The city ranks 37 in the Index.
• Key nodes of commerce “Down Under”. Sydney and Melbourne, two of Australia’s most vibrant cities prove that they are not just great places to live but also key Centers of Commerce. Sydney, home to Australia’s stock exchange, ranked 14 overall in the Index, while Melbourne ranked 34.
Methodology
The Worldwide Centers of Commerce Index is compiled from research by a panel of eight independent economic, urban development and social-science experts from leading academic and research institutions around the world, led by Dr. Hedrick-Wong. To form the index, the panel first identified 63 cities around the world that met their initial criteria.
Cities were then rated on the six dimensions:
• Legal and political framework
• Economic stability
• Ease of doing business
• Financial flow
• Business center
• Knowledge creation/information flow
This entailed measuring a number of equally weighted, relevant indicators and sub-indicators that aggregate available data on region-specific procedures, costs and ratings, as well as criteria related to quality of life, access to technology, city livability, logistics and knowledge creations and creativity. In total, over a period of four months, the panel evaluated six dimensions, 41 indicators and more than 100 sub-indicators to derive an Index ranking for each city, a process that exceeds traditional measures used to gauge worldwide financial and business activity.
