Substantial levels of foreign direct investment (FDI) and simultaneous house price appreciation have been widely observed in emerging economies for many years, and especially since the turn of the century. FDI inflows enhance economic growth, increase employment opportunities and ultimately lead to rising salaries as companies compete to recruit the best workers.
In a global study of the most promising investment locations, fDi Magazine - a Financial Times publication - has listed which cities are attracting the most FDI and which cities are emerging the fastest, or seeing the fastest increases in FDI. The Global City of the Future 2014/15 report analysed 130 different cities and between 2003 and 2009, more than one-third of global FDI went to these 130 locations.
According to Courtney Fingar, editor-in-chief at fDi Magazine: "Cross-border greenfield investment is on the rebound after a difficult few years, but it is still a tough and highly competitive environment for cities in all parts of the world as they strive to attract inward investment. While we have done regional comparisons for years, we thought it would be interesting to reflect the truly international nature of FDI competition by pitting cities in all world regions against each other and seeing how they stack up in the criteria that matters most for investors. Our findings reveal that rather than being a top-heavy list, it is a close competition and many of the leading cities of the world have a great deal of opportunity to offer investors."
Data was collected for these 130 locations under five categories: Economic Potential, Business Friendliness, Human Capital
and Lifestyle, Cost Effectiveness and Connectivity. Locations scored up to a maximum of 10 points for each data point, which were weighted by importance to the FDI decision making process.