Tel Aviv Global City

Work Plan2011Tel Aviv-Yafo Municipality

Contents

33How to do it ?

22Why Tel Aviv?

11What are

Global Cities?

What are Global Cities?

Cities of global importance, in which there is financial, cultural and social activities with global

outreach and impact

Examples of Global Cities*1 .Alpha ++ Cities = New York , London

2 .Alpha Cities = Very important world cities that link major economic regions

into the world economy .Ex: Paris, Hong Kong

3 .Beta Cities = Important world cities that are instrumental in linking their region into the world economy.

Ex: Barcelona, San Francisco, Tel Aviv

*2008 Index by Globalization and World Cities Research Network

Vision: To Emerge as a Global City in 5 Years

What is the benefit for Tel Aviv ?

Global Cities witness growth in many fields:

-International Investment -Culture

-International Students -Global Values – service, foreign language proficiency

-Income from Visitors

Everyone Enjoys the Success

Global Cities contribute to national growth

A National Asset – boosts the economy, culture, tourism and branding efforts

A Peripheral Asset – a major component in regional development

A Metropolitan Asset – Greater Tel Aviv

Tel Aviv’s Opportunity

In the 21st Century, cities lead global competition

Tel Aviv is ready to make its global leap:It’s the nation’s financial and cultural center-It’s an internationally recognized brand-

-The municipality is perceived as an effective public agency

How to do it?

To emerge as a global city ,Tel Aviv must take a double leap:

Cultural Financial

The Barcelona Model

Following the 1992 Olympic Games, Barcelona made an international leapA financial leap – to become a European center for creative and innovative industriesA cultural leap – by investing in the city’s local unique assets: architecture, art, nightlife, the

beach, street life .

How will we implement in Tel Aviv?

Two Pronged Plan

InternationalFinancial Center

InternationalCultural Center

• Art and Culture• Students

International Financial Center

Contents

• Background: What is an International Financial Center

• Chapter A: How is such a center created

• Chapter B: Initial steps

Background

• It is accepted that cities lead their countries in global competition and specifically as financial centers

• The Tel Aviv Global City Administration is the municipal authority responsible for leading the process of positioning Tel Aviv-Yafo as a global city

• In this framework the administration has defined its modus operandi along two veins: Economy and Culture

• In the economic vein, the primary objective is leveraging Tel Aviv’s status as the foremost financial center in Israel to an international position

What is an International Financial Center?A center of financial services that can provide services to parties unrelated to the country in which it is situated by virtue of its competitive advantage

What are it’s advantages?The Financial Sector has a large growth potential:

• Creation of employment for high income professionals• Feeding local businesses• Encouraging urban development – creating income for the

municipality and the city

Background

Typology of Financial Centers

• Global: Provide all services to most markets(London, New York, Hong Kong, Tokyo)

• International: Most services, with strong regional emphasis (Geneva, Frankfurt, Dublin, Chicago, Shanghai, Dubai)

• Niche: Focused on one or two sectorsFinancial asset management (Zurich), banking and insurance (Shenzhen)

• Tel Aviv’s potential: Combination of niche expertise and regional center (Eastern Europe, Central Asia, Africa)

Background

Map of the Financial Centers in the Eastern Hemisphere

The vacant geographic

area

Background

Success Stories• Geneva (ranked 9 in the GFC)

Niche center: financial asset management

• Vancouver (21)Niche-Regional center, emphasis on south-east asia

• Kuala Lumpur (48)Niche center: Islamic finance

• Johannesburg (54)Niche-Regional center: insurance

Background

Why Tel Aviv-Yafo should lead

• Successful precedents in the rest of the world are cities

• Independent branding (bypassing the conflict)

• Ability to lead the metropolis and the periphery

• The municipality is considered neutral by governmental authorities

• Stability of the municipal authority

Background

Tel Aviv’s Advantages

• Geographical and time zone proximity to Europe and central Asia

• Existing human resources and potential for expansion

• Ideological attraction for Jewish business• Standard financial terminology bypasses language

barriers• Sunday is a full work and trade day• Resilience during security and economic crisis• Attractive multi-cultural lifestyle• Prolific proficiency in English and a wide range of

other languages

Background

Barriers and Weaknesses

• The geopolitical-security situation in Israel

• Image - Tel Aviv is currently not perceived as a financial center

• Insufficient infrastructure

Background

Chapter A:

How is such a center created?

Tel Aviv Financial Center Master Plan

Master Plan – Tel Aviv Financial Center

Guiding Principles• Development of competitive advantages based on existing

strengths

• Partnership and cooperation with governmental organizations and the public (professional committees)

• Inclusion of the metropolis and periphery in the fruits of success

• Definition of key success indices and indicators

PartnershipsTel Aviv Municipality, Ministry of Finance, Bank of Israel, Israel Securities Authority, Tel Aviv Stock Exchange

Master Plan – Tel Aviv Financial Center

Objectives

1. Identification of Sub-Sectors in which Tel Aviv has a

Competitive Advantage

2. Developing the required Human resources

3. Developing the required Infrastructure

4. Legislative and Regulatory Reforms

5. International Marketing and Branding of Tel Aviv

Master Plan – Tel Aviv Financial Center

Definition of Partnerships

• Municipality, academia, government, economic institutions, businesses and market leaders

Partnership includes:• Consultation in the consolidation of a master plan• Convening forums and committees• Identifying budgetary sources• Identifying international bodies for future

cooperation

A partners database was established composed of 6 main groups:

Master Plan – Tel Aviv Financial Center

Success Indices and Indicators

• Appearance and rank in the Global Financial Center Index (GFCI) commencing 2011

• Increase in the number of employed in the financial sector

• Increase in the export of financial services

• Increase in the number of multinationals in the city

Chapter B:

Initial steps

Initial Steps

VIP Exposure to Financial Tel Aviv

• Exposure of Tel Aviv’s business activities and economic potential to visiting officials and business VIP’s

Partnerships:Mayor’s Office, International Relations Department, Ministry of Foreign Affairs. Ministry of Finance, Ministry of Industry, Trade and Labor, Bank of Israel

Initial Steps

One-Stop Tel Aviv Business Portal

• Identifying the needs of international entrepreneurs, investors and businesses

• Providing the relevant information and contact persons

Partnerships:Municipal Finance Department, Business Licensing Department, City Planning Department, International Relations Department, Ministry of Industry, Trade and Labor, Tax Authority, Other governmental ministries, professional unions

Initial Steps

Encouragement of Entrepreneurship

Leveraging the existing entrepreneurial ecosystem in Tel Aviv in order to attract foreign entrepreneurial talent, startups and investments

• Support of existing activities• Examination of the needs and barriers

Initial Steps

International Economic Conferences

• Presentation of Tel Aviv in international conferences taking place in the city

• Initiation of a Tel Aviv international business conference

• Promotion of Tel Aviv as a host of international conferences

Partnerships: The Israel Trade Fairs Center, Ministry of Tourism, International Relations Department, production companies

Initial Steps

International Financial Image

• Invitation of senior economic journalists to cover the financial activities in the city and its potential

PartnershipsPublic relations consultant for foreign media, Ministry of Foreign Affairs, Government Media Bureau

• In the coming months the city of Tel Aviv will officially launch the initiative

Initial Steps

Launch

Thank you!

Background

• As the process of globalization continues so international competition become more acute

• The future of Israel’s economy depends upon its ability to stay competitively ahead

• Cities have become the dominant players and competitive contenders on the global landscape

The Challenges

• The success of the hi-tech industry has intensified Israel’s dependency on it

• Though an economic engine, it must have cars to pull and these are the additional sectors that must be identified

• There is a growing “brain drain” trend sweeping through Israeli highly qualified work force and academia to leading financial centers

• The way to increase immigration and return Israelis is through creating similar attractive local opportunities

• Continued exiting of traditional industries from Israel are expected due to increasing sensitivity to environmental issues and low wages

Possible Solutions

• Targeted specific treatment:

– “Artificial respiration” include governmental incentives for maintaining competitive advantages

– Benefits and tax breaks for incentivizing highly skilled human capital to remain in Israel

– Importation of foreign labor to lower industrial costs

– Increasing immigration benefits

Holistic Solution

Development of an International Financial Center in Israel

Thank you!