October 23, 2015
Bogota consolidates its position as one of the cities that receives most new foreign investment projects in the world and No. 1 in Latin America, according to IBM-Plant Location International.
In 2014, IBM-PLI recorded the arrival in Bogota of some 50 new FDI projects, double the previous year and more than Rio de Janeiro.
Colombia (No. 19) moved up three positions on 2013 and now ranks among the top 20 economies in the world.
Bogota, Friday, September 25, 2015. (IiB) In its recent Global Location Trends report for 2015, IBM-Plant Location International for the first time spotlighted Bogota in the ranking as the most important city in Latin America in terms of new foreign investment projects. Bogota outperformed its main competitors in the region and was ranked 16th globally, up there with such renowned metropolises as Hong Kong, Melbourne and Dublin.
Following a year of global economic recovery, Bogota and Colombia have benefited from a rebound in business investment strategies towards emerging economies. In 2014, the report recorded nearly 50 new foreign investment projects arriving in Bogota, double the previous year and more than Rio de Janeiro, its main competitor in the region. London, Paris and Singapore are the main locations of choice for investors worldwide.
Juan Gabriel Pérez, CEO of Invest in Bogota, notes: “This result ratifies the positive times the city is experiencing in terms of international positioning for business, particularly evidenced by the fact that Bogota receives most of the foreign investment in new projects coming into the country, excluding oil investment. In fact, the number of foreign companies operating in the city has increased from 500 to over 1,500 in ten years, a clear vote of confidence in the business opportunities that Bogota has to offer.”
In terms of job creation from foreign investment, Colombia (ranked 19th) rose three positions in the ranking of countries with respect to 2013 and now figures among the top 20 economies in the world. Estimates suggest that foreign investment has created 15,000 jobs in the country, a very significant 40% more than the previous year.
The United States’ economy remains the largest recipient of investment projects, followed by China and India. In Latin America, Mexico is the main destination country (despite a 20% drop from the previous year), followed by Brazil (with a fall of 6%). This report, which has been measuring global investment for over 10 years, is based especially on job creation as the main indicator of FDI’s impact on local economies.
Pérez goes on to say, "Bogota is the Colombian city that is best able to meet foreign direct investment’s workforce needs. For example, in terms of business process outsourcing (BPO), which is an essential factor for foreign investors, Bogota employs more than 55,000 people of the 73,000 who work in this sector throughout the country."
Bogota is a magnet for foreign investment in the region thanks to advantages such as its privileged geographical location with access to major regional markets through different free trade agreements; a pro-investment business environment that encourages the installation of foreign companies; a market of 7.7 million people (16% of the country); a ready supply of highly-qualified human resources and a GDP of USD 93 billion (24.7% of Colombia and larger than that of countries such as Uruguay, Costa Rica and Panama).
About the report
IBM-Plant Location International (IBM-PLI) is IBM’s international business services division and specializes in corporate location and economic development strategies. This report, which has been measuring global investment for over 10 years, is based especially on job creation since it is the main indicator of FDI’s impact local economies.