Introducing our index ranking the business attractiveness of1,500 cities across Asia, Africa, Latin America, and the Middle East The CitiesShaping The Future Introducing our index ranking the business attractiveness of1,500 cities across Asia, Africa, Latin America, and the Middle East ExecutiveSummary From ancient metropolises like Babylon and Rome to the rise of Londonin the 19th century and New York in the 20th, cities have been crucial inthe development of commerce, culture, and government. That role is playing out on a larger stage than ever today. For the firsttime, more than half of the world’s population lives in cities, andthe pace of urbanization is fastest in the emerging and developingeconomies of Asia, the Middle East, Africa, and Latin America. Cities inthese regions also are benefitting from fundamental transformations inthe global economy as geopolitical tensions, protectionist pressures, anda wave of industrial policies prompt major corporations to reconsiderwhere they produce and market their goods and services, grow theircustomer bases, and find new talent. These forces are creating new urban centers of growth and innovationthat are fast taking leadership from the North American and Europeanmetropolises that led the way for most of the 20th century. Over the nextdecade, these four regions will be home to 28 of the world’s 30 largestmegalopolises, with Shanghai and Cairo, Delhi and Dhaka, MexicoCity and Mumbai, Kinshasa and Tokyo having populations of between25 million and 40 million people each. The opportunity extends well beyond these urban giants. The fourregions are home to more than 1,500 cities with populations greater than250,000. That’s more than three times the number of comparably sizedcities in Europe and the United States combined. Consider the example of Ho Chi Minh City. In a little over a generation,Vietnam’s commercial capital has been transformed from one of SoutheastAsia’s poorest cities into an industrial hub of choice for multinationalslooking for low-cost and relatively friction-free alternatives to producing inChina. Germany’s Adidas, South Korea’s Samsung, and Sweden’s H&M arejust some of the big brand names that make products in the country. Many of these cities are becoming hubs in their own right, extendingeconomic benefits more deeply into their respective regions.Hangzhou, for example, has become the commercial center of choicefor China’s leading technology firms, startups, universities, andresearch institutes. Mexico City serves as a regional headquarters fora range of multinationals as well as a source of skilled talent in design,technology, and finance for companies all across North America.Jakarta’s commercial success is driving growth in neighboring citieslike Bandung, while Ho Chi Minh City’s sprawling industrial parks aregradually merging into those of nearby cities like Bien Hoa. Business leaders need to understand the opportunities and risks inthese cities as they consider where to expand or how to adjust theirglobal footprint. For large companies, this typically means developing aportfolio of cities to fulfill broader regional or global ambitions. Our data model provides a framework for assessing these new areasof opportunity and risk. We use a novel combination of geospatialanalytics, machine learning, and alternative data such as factorylocations or corporate headquarters to compare cities’ strengths andcreate valuable insights. Our rankings can help companies and citiesmake better strategic decisions. Our research is ongoing, and we plan toexplore cities in the United States and Europe, among other countries, infuture editions. The time to prepare for the future is now. The cities of the emerging worldare ready to play a big role in shaping that future. Contents Meet The Cities DrivingGrowth Today AndShaping Tomorrow Export Champions Commercial Hubs 18Cairo21Istanbul24Jakarta27Johannesburg30Mumbai33Riyadh37Santiago40SãoPaulo 45Accra48Bursa51HoChiMinhCity54Tangier57SanSalvador60Shenzhen63Tijuana 12AboutTheIndex14TheTop20CitiesByClass Mobility Connectors Climate Resilient 69Bangkok72Bogotá75Dubai78Jeddah81Lagos84Nairobi87PanamaCity90Shanghai 96Alexandria99Basra102 Chennai105 Chihuahua108 Dakar112Dhaka115Lima118 Muscat Design 121 AboutTheDesign Meet The CitiesDriving GrowthToday And ShapingTomorrow The Oliver Wyman Forum’s new index ranks 1,500 cities poisedto help businesses meet the future’s most difficult challenges The global economy is undergoing the biggest transformation in ageneration. Geopolitical tensions, protectionist pressures, and a waveof industrial policies are prompting corporations to rethink where theyproduce and market their goods and services to make their businessesmore resilient. At the same time, demographic shifts are fueling theemergence of new centers of production and consumer demand. Together, these forces are creating new drivers of growth and innovation,shifting the global economy’s center of