- Greensill research shows magnitude of funds needed by end of 2020
- $1tn for telecoms infrastructure plus $1.7tn for "Internet of Things"
- Alternative finance needed to meet funding requirements
The real cost of rolling out and implementing 5G telecoms technology across all sectors of the economies worldwide is expected to reach at least $2.7 trillion by the end of 2020, this is according to research by Greensill, the provider of working capital finance.
The telecoms sector requires an estimated $1 trillion of investment for infrastructure upgrades to accommodate 5G, a number widely accepted across the industry. Greensill's research shows, however, that the implementation of 5G across the global economy will cost far more – as much as $1.7 trillion more by the end of 2020 alone - as companies rush to assimilate the new technology into everyday products, industrials processes and infrastructure – otherwise known as "The Internet of Things."
Tony Wonfor, Greensill managing director and telecoms finance specialist says: "Spending on 5G roll out is just the thin end of the wedge. This project is actually about funding the growth of the Internet of Things and industrial connection to that." "In the automotive industry, for instance, 5G will be important for tracking components through the supply chain and in to the manufacturing process, then right through to an end product that has connectivity beyond anything we have seen so far," Wonfor adds.
Many companies are facing significant challenges in meeting these huge funding requirements as traditional banks alone cannot provide all the necessary funding. Greensill is filling the funding gap with innovations such as Supply Chain Finance, Accounts Receivable Finance and other working capital solutions.
Lex Greensill, Greensill founder and CEO, says: "Greensill counts many of the world's leading telecoms and industrial companies as clients primarily because of our success in innovating financial solutions across this space. We see our products such as handset financing and other working capital solutions as crucial to the successful roll out of 5G globally."
Greensill is the world's leading non-bank provider of working capital finance to companies globally. Founded in 2011 by Lex Greensill, the company provides businesses with alternative sources of funding, allowing them to provide suppliers with the opportunity for faster payment while at the same time preserving their own capital position.
China's private space launch firm, LandSpace, recently announced that it had closed the series B+ round of financing at ¥300m RMB ($43m USD), led by China Growth Capital with Zhongji Investment, 36Kr, Juzhuo Capital and others, bringing the total raised by LandSpace to over ¥800m ($115m USD). The purpose is to create a new commercial aerospace ecosystem consisting of the development, production and testing of the new liquid rockets.
Wayne Shiong, Partner of China Growth Capital (CGC), a leading investor, said, "Following the recent successful landing of the robotic spacecraft, Chang'e-4, on the far side of the moon on 3 Jan 2019, we are confident in the growth of the Chinese aerospace industry for the coming decades.
Private firms like LandSpace can add value by becoming a beneficial market supplement to traditional state-owned firms. LandSpace can greatly shorten the R&D time of small and medium-sized liquid oxygen methane engines in China and effectively reduce the cost of commercial launches in the future."
This financing round of LandSpace will be mainly for the R&D of the 80t liquid oxygen methane engine "Tianque" (TQ-12) and the medium-sized liquid launch vehicle "Zhuque 2" (ZQ2); both are flagship products of LandSpace. The trial run of short nozzle state thrust chamber for engine "Tianque" (TQ12) has been completed by the end of September 2018. It is expected that the test run of the whole system will be completed in the first half of 2019. The mediumsized liquid launch vehicle "Zhuque 2," which is developed based on the engine "Tianque" (TQ12), is planned to have its maiden voyage in 2020.
Zhang Changwu, CEO of LandSpace, believes the privately held firm's remarkable progress is attributed to a clear commercialization strategy and strong technical team. In the future, LandSpace will adhere to its true and tested technical strategy and continue to contribute to China's aerospace industry. LandSpace will focus on R&D, manufacturing and supply chain management, in order to meet the needs of the upcoming commercial launch in 2020.
About LandSpace LandSpace Technology Corporation Ltd. is a Chinese private aerospace enterprise engaged in the R&D and operations of launch vehicles. Focusing on small and medium scale commercial aerospace application market, LandSpace is devoted to the development of Liquid-fuel Rocket Engines (LREs) and low-cost commercial launch vehicles with independent intellectual property rights.
About China Growth Capital China Growth Capital is a leading early-stage venture capital firm in China with an extended interest in Silicon Valley. The firm funds seed to Series B in fintech, enterprise tech and Internet consumer sectors. Since its founding in 2006, China Growth Capital has grown to manage 8 Billion RMB (approximately 1.2 Billion USD) in asset under management across its different RMB and USD funds, with close to 300 portfolio companies. In addition to spaces technology, China Growth Capital has also recently invested in industries such as enterprise software, fintech, medtech, argritech, e-commerce and artificial intelligence etc.
For more information please visit: www.landspace.com www.chinagrowthcapital.com
“The Kawasaki INnovation Gateway SKYFRONT is the first important step in establishing the Tonomachi area of Kawasaki City as Asia’s Silicon Valley".
The area is the flagship science and technology innovation hub of Kawasaki City. KING SKYFRONT is a 40 hectare area located in the Tonomachi area of the Keihin Industrial Region that spans Tokyo and Kanagawa Prefecture and Tokyo International Airport (also often referred to as Haneda Airport). KING SKYFRONT was launched in 2013 as a base for scholars, industrialists and government administrators to work together to devise real life solutions to global issues in the life sciences and environment. Kawasaki KING SKYFRONT is a global innovation hub attracting the world’s leading corporations and laboratories in the areas of health, medicine, welfare and environment. Also designated as a special zone under the country’s new growth strategy, various privileges are offered to those operating at Kawasaki KING SKYFRONT.
Taking advantage of its exceptional access on land, sea and air, Kawasaki KING SKYFRONT is pursuing the goal of becoming the world’s highest-standard R&D hub. Specifically, methods to cure Alzheimer’s disease, cancer and spinal cord injury are being studied and developed, together with the development and manufacturing of innovative drugs and medical equipment, such as the design and production of state-of-the-art medical robots.
These actions are progressing steadily at Kawasaki KING SKYFRONT, in order to overcome issues faced by the modern world to create a healthy society, while promoting sustainable growth of the global economy. Internationally speaking, Japan is one of the few countries in the world that lead the movement to create new drugs. Together with the U.S. and Europe, Japan possesses all elements required to nurture knowledge-intensive industries, and the country demonstrates leadership over other Asian countries in this area. Furthermore, Japan has a rapidly aging population and a declining birth-rate, faster than many other countries. As such, products and services that respond to the medical and consumer needs of the elderly society are expected to create many new business opportunities.
Concentration of Expertise In addition, Kawasaki City’s action of matching personnel, technology and industrial platforms in eco-tech areas is likely to bring birth to many more new products, service and technologies at Kawasaki KING SKYFRONT. The City looks forward to such movements to improve the global environment and incubate numerous large-scale business opportunities. New business opportunities for product and service development, as well as the need for advanced medical care are generated by the 37 million population of the greater Tokyo area where Kawasaki KING SKYFRONT is located. As of 2012, the area housed 4,933 corporations and 1,165 research institutions, as well as 35 universities and graduate schools with science and engineering departments, and 46,000 people employed in R&D work. All of this combined suggests the great potential of Kawasaki KING SKYFRONT to respond to constantly changing, advanced market needs. Since many leading corporations locate their headquarters in the greater Tokyo area, Kawasaki KING SKYFRONT’s geographical position also serves as an ideal front for the R&D facilities to work closely with their sales / business divisions.
The areas surrounding Kawasaki KING SKYFRONT are unique for accumulating numerous global corporations, joint venture businesses, new businesses, medium and small-sized businesses with advanced manufacturing skills, as well as petrochemical factories and raw material industries. Since manufacturing and R&D are ideally conducted in close proximity, Kawasaki KING SKYFRONT serves as an optimal location with a high global potential for bringing birth to new technologies.
Green As the nucleus of the Keihin Industrial Zone, Kawasaki supported the rapid economic growth era of the nation. The flip side of rapid industrialization, however, was the degradation of the environment, including air and water pollution on a massive scale. In order to overcome this problem, Kawasaki City jointly worked with corporations to recover clean air and water. Consequently, much knowledge and human resources in pollution control is now recognized in this coastal area. Taking advantage of this, Kawasaki City is currently focusing on the utilization of hydrogen energy as a prime technology in “green innovation.” Such action of the City is very timely and likely to become an advanced model, since the industrial area adjacent to Kawasaki KING SKYFRONT has a massive hydrogen demand, and the area serves home to numerous fuel cell-related corporations.
Location - Advantages Kawasaki KING SKYFRONT is the Tonomachi development area of Kawasaki City, situated on the opposite shore of Tama River. Facing the Haneda International Airport and covering an area of approximately 40 hectares, concentrated here are the world’s forerunner corporations and research institutes in the areas of health, medicine, welfare and environment. Here, industry, government and academia collaborate dynamically beyond various barriers and restrictions.
Halfway between Tokyo and Yokohama, the city of Kawasaki belongs to the greater Tokyo district: the largest political, social and economic hub of Japan. Kawasaki is a lively city, with excellent traffic access and a comfortable living environment. As such, Kawasaki’s population has been growing steadily over the past decade, marking the highest growth rate among the 20 government- designated cities of Japan, and exceeded 1.5 million in April 2017.
Located right in the heart of greater Tokyo, many important cities of Japan are within the 30 kilometer radius of Kawasaki KING SKYFRONT. Furthermore, Kawasaki KING SKYFRONT offers a logistical advantage by sea as it is in the center of Keihin Port. In addition, it is at the interchanges of numerous expressways that extend north to south, east and west.
Kawasaki KING SKYFRONT is also just 600 meters away from the Haneda International Airport, the hub of numerous flights to and from Asia and the world. Taking full advantage of this aerial gateway, as well as other available excellent transport infrastructure by sea, road and railway, day trips from Kawasaki KING SKYFRONT can be made throughout Japan and some Asian countries. This will be enabled further with the construction of a bridge that directly links the Kawasaki KING SKYFRONT with the Haneda International Airport, to be completed in 2020.
Furthermore, located at Haneda International Airport is the Tokyo International Air Cargo Terminal (TIACT), an exclusive facility for medical drugs (medical gateway), where drugs for clinical test purposes are preserved at the proper temperature, and are maintained under strict security control. This medical gateway also assists Kawasaki KING SKYFRONT’s corporations and research facilities by allowing swift and efficient transport of their drugs to any medical institution within or outside Japan. Furthermore, a direct link road will be completed by 2020, connecting Kawasaki KING SKYFRONT to Haneda International Airport, Japan’s main aerial gateway to the world. Close to Kawasaki KING SKYFRONT are numerous attractive natural settings and cultural facilities that can be reached within minutes.
For more information: www.king-skyfront.jp
Largest investment in the European chemical industry in 20 years
INEOS, one of the largest chemical concerns in the world, has chosen the port of Antwerp as the location for a megainvestment of 3 billion euros representing 400 new jobs.
The capital outlay is the largest in the European chemical industry in the past two decades. With the securing of this large-scale investment project Antwerp further reinforces its role as the largest chemical cluster in Europe.
INEOS plans to build a brand-new propane dehydrogenisation (PDH) plant and an ethane cracker unit in Antwerp. These will respectively convert propane into propylene and ethylene as the raw materials for chemical products. These products find their way into many industries including car manufacturing, building construction, clothing, cosmetics and personal grooming products, pharmaceuticals, electronics and packaging materials.
The investment by INEOS confirms and strengthens the competitiveness of Antwerp’s chemical cluster in Europe.
Antwerp as a most attractive location Earlier last year INEOS announced that it planned a large-scale investment for further expansion of its chemical production facilities. Various European locations were considered, but ultimately the British chemical group opted for Antwerp.
INEOS CEO and chairman Jim Ratcliffe: “There are three reasons why we have chosen for Antwerp. We started here in 1998. We know the people here and have nine plants in Belgium and 2,500 employees, and Antwerp is highly competitive regarding connectivity with the European chemical cluster”. Of crucial importance is the fact that INEOS’ products will be destined for the many companies in the Antwerp chemical cluster.
Port of Antwerp: Most competitive chemical cluster in Europe The investment by INEOS confirms and strengthens the competitiveness of Antwerp’s chemical cluster in Europe. Earlier in 2018 also the Austrian chemical concern Borealis announced it would invest 1 billion euros in the port of Antwerp.
Jacques Vandermeiren, CEO of Antwerp Port Authority comments: “It is naturally very good news that INEOS has selected our port for this major new investment. It once more demonstrates that we as the largest integrated chemical cluster in Europe are very attractive to international investors. This mega-investment brings the total amount of new capital expenditure that we have attracted to Antwerp over the past year to more than 5 billion euros. This will undoubtedly help to secure the presence of industry here in Antwerp.”
New plants operational by 2024 The new production plants of INEOS are expected to be operational by 2024. Once the plants are up and running they will provide 400 full-time jobs directly and five times that number indirectly. Some 3,000 people will be employed during the construction phase.
For more information about the investment by INEOS visit: www.ineos.com | www.portofantwerp.com
For more information about Antwerp’s chemical cluster visit: www.businessinantwerp.eu
The endless possibilities of the integration of AI with IoT:
The era of Internet of Things is already in its third phase. At the beginning, the goal was for objects to be connected to the network. The second, that they could communicate with each other and interact. And finally, that they were smart. That is, they could be aware of what is happening around them, extract data, analyze it, and make decisions based on it.
The Industrial Development Bureau (IDB) presented new solutions aimed to integrate Artificial intelligence in IoT (Internet of Things) and 5G technology at the Mobile World Congress 2019. IDB selected 13 Taiwanese companies with innovative products and solutions to be showcased during the biggest IT conference in the world, which took place in Barcelona.
Taiwanese companies and the 4th industrial revolution
The integration of artificial intelligence in IoT will require more powerful connections, hence the importance of new advanced servers that will allow 5G networks to show their full potential. From there, each industry should evaluate their own production processes, determining which parts must be digitized. The industrial processes in assembly lines, the interconnection between different factories, either of suppliers or manufacturers, as well as the management of the finished product, can be managed through AIoT in a more efficient and productive way. AI is appearing throughout the three layers of the IoT architecture, from device connectivity, platform analytics and application services.
The IoT industry chain in Taiwan has great advantages in hardware, as well as the flexible and quick responses to product development. Keeping in mind the importance of integration of platforms and systems, Taiwan's industry continues to strengthen its competence in the integration of devices, networking and systems for AI, NB-IoT and edge computing in order to seize the business opportunities different vertical markets, and to facilitate Taiwan's smart city development.
Taiwan offers world-class talent and has become a hotbed of AI research in recent times. Along with the world’s top hardware manufacturing capacity, the country attracts global tech giants such as Microsoft and Amazon Web Services (AWS) to set up AI R&D and innovation centers in Taiwan. Amazon Web Services(AWS), an Amazon subsidiary previously announced plans to open a joint innovation center with the New Taipei City Government in January 2018. The joint venture focuses on AI, big data, cloud computing and Internet of Things (IoT), as well as giving technical assistance to Taiwanese cloud computing startups. Microsoft set up an IoT research and development center in Taipei City in 2016 and established an AI research and development hub in Taipei City in January 2018. Microsoft is currently in the process of recruiting 200 technology specialists for its new AI hub. Taiwan has become Microsoft's biggest R&D center in Asia.
The partnerships are set to create a comprehensive ecosystem of startup innovation, which will help pioneer the shift from traditional industries into digital markets in Taiwan. According to Gartner, global information technology spending will reach $3.7 trillion US dollars in 2018, up 4.5 percent from 2017 and Internet of Things, big data, Artificial Intelligence, and blockchain will be the main force driving tech growth.
AIoT Taiwan: www.aiottaiwan.com
The EMEA data center colocation market is estimated to attract investments worth around $10 billion by 2023, growing at a CAGR of approximately 8% during 2017-2023.
The electrical infrastructure segment dominated the largest market share in 2017, growing at a CAGR of more than 7% during the forecast period. The increasing focus on procurement and adoption of efficient, require less maintenance, and reduce space systems are propelling the growth of this segment in the European market. The implementation of stringent regulations about privacy and security of data processed by facilities and consumers is driving the evolution of the European data center colocation market. In April 2016, the European Union adopted the General Data Protection Regulation (GDPR), which came into effect from May 2018. The implementation of GDPR is boosting the investments and demand for colocation services across several countries in the Europe market. The rapid deployment of innovative facilities namely, modular, containerized, and POD facilities will boost revenues in the European data center colocation market.
POD facilities are a single rack of facilities systems, with power and cooling integrated to provide higher performance for data processing applications at the edge locations in the market. The exponential proliferation of internet across the Eastern European and Africa region will positively impact the European data center colocation market. The growing popularity of district heating concept across the region will transform the European data center colocation market during the forecast period. The facilities are the major consumers of power and water in the market. The process of converting the disadvantage of operating a facility in a locality to its advantage by supplying waste heat emitted by servers to cool district homes during winters is district heating.
The wholesale colocation services are the fastest growing segment in the market, at a CAGR of more than 13% during the forecast period. In 2017, various large enterprise businesses and global cloud providers were the largest users of wholesale services in the European market. The leading service providers are offering customized wholesale colocation solutions, where the pre-leased customer can work with the service provider to design and develop the facility according to the customer's IT infrastructure operational requirement. Personalization of services will boost the demand for these services in the data center colocation market in Europe.
Western Europe dominated the majority of the market share in 2017, growing at a CAGR of around 6% during the forecast period. The UK, Germany, France, Ireland, Spain, Italy, the Netherlands, Switzerland, Portugal, and Austria are the largest revenues generators in the Western European region in the EMEA market. The Nordic region occupied the second largest market share in 2017, growing at a CAGR of approximately 12% during the forecast period. The deployment of hyperscale facilities, spanning over 200,000 square feet, and rack power density of up to 40kW is propelling the growth of the Nordic region in the European market.
The EMEA data center colocation market is witnessing the expansion and construction of new facilities across the region due to the implementation of GDPR. The leading facilities operators are deploying facilities with over one million net rentable white space to service retail and wholesale facilities customers.
Some of the other prominent providers of datacenter service in the European market include T-Systems, Kepple DC, Colt DCS, TeliaSonera, Iliad Datacenter, Telefónica, Euclyde, and Interoute. The growing demand for cloud services will create new avenues for service providers operating in the market. Vendors such as Equinix has developed an estimated net rentable area of around 500,000 square feet across 14 facilities that were opened and under construction in 2017 to attract a maximum number of consumers in the market. The entrant of pure-play colocation providers will increase the level of competition in the EMEA data center colocation market during the forecast period.
Other prominent vendors in the EMEA data center colocation market consist of:
3 data, Aruba S.P.A., Atman (ATM S.A.), Basefarm (Orange Group), Bezeq International, CenturyLink (Level 3), Cyxtera Technologies, dcstar, Digiplex, Euclyde, Flexential, Fortlax, Global Connect, Green Datacenter AG, Hydro66, Iliad Data Center, Internap, Interoute (GTT Communications), IXcellerate, Keppel DC, LDeX Group, Liquid Telecommunication,LuxConnect, Mobily, Ooredoo, ST Telemedia Global Data Center (STT GDC), Switch SUPERNAP, Telehouse, Telefónica, Teraco Data Environments, Tieto, TSystems (Deutsche Telekom), Turkcell, Verne Global, VNET, and Zayo Group Holdings.
At the Geneva International Motor Show (GIMS) 2019 PAL-V unveiled the distinctive features of the PAL-V Liberty Pioneer, world's first production model flying car. The 90-piece limited edition is based on the PAL-V Liberty which was unveiled last year at the GIMS. It will open the next chapter of mobility.
According to Dingemanse, CEO of PAL-V: "The Pioneer Edition is for those that want to be part of a unique group that writes history with us. They will be at the forefront of a mobility revolution, where we will no longer have cars that can only drive.They will be the first carflyers in their country, FlyDriving to any destination. Last year we already announced that we were going to start with a limited edition of the PAL-V Liberty. This year we show the special elements of this limited edition of which delivery starts in 2020," says Dingemanse.
Amongst other features, the PAL-V Liberty Pioneer Edition is equipped with a dual control cockpit and the Electronic Flight Instrument System. The full carbon package clearly distinguishes the Pioneer from the standard Liberty as well as a tailor-made interior and exclusive characteristic two tone colour scheme.
Developing a flying car takes a long time and a lot of persistence. It's a revolutionary development, especially as PAL-V developed a commercial vehicle that complies with existing regulations, very different from an interesting technical concept.
With the launch of the PAL-V Liberty Pioneer, PAL-V will open the next chapter of personal mobility. The Pioneer edition gives 90 people in the world the possibility to go above and beyond.
Mongolia, once a place whose very name conjured up images of isolation and deprivation has become one of the hottest new frontier market destinations for international and luxury brands in recent years, particularly those catering to higher income clients.
Over the past 28 years, Mongolia has been successfully transforming into a vibrant democracy from a centrally planned socialist economy, resulting higher level of GDP with vast agricultural and mineral resources. During its transition to a market economy, Mongolian GDP had bottomed out particularly in 1993, experiencing a painful “transformational recession” until 2000. The new economy began to recover slowly to positive rates of growth thereafter by 2001- 2010. GDP per capita doubled between 2005 and 2012.
This economic boom has made many Mongolians millionaires overnight and affluent locals have begun seeking new ways to enjoy and show off their wealth.
However, the economy was particularly slowed down by a fall in commodity prices and declining investment and private consumption during 2014 - 2016.
After this downturn, the Mongolian economy strongly recovered in 2017 and 2018H1. GDP growth rate increased from 1.2 percent in 2016 to 5.3 percent in 2017 and 6.3 percent in the first half of 2018, thanks to growing investment in the mining sector and higher coal prices and exports.
The changes of GDP growth in these years indicate that the country’s economy is strongly dependent on mineral commodities. Boosted by an incredible amount of minerals with an estimated value of 1.5 - 2 trillion USD with a relatively small population, the economy has became one of the hottest new frontier markets for international investors in various fields.
Mongolia’s rampant economic growth has had a significant effect on the purchasing power of households. Working and professional class wages have risen rapidly, lagging just slightly behind the overall economy once inflation is taken into account. The retail sector that has benefitted from the recent boom has become the hidden hero of Mongolia’s real estate market. Both local retailers and the handful of international brands rapidly started expanding and many luxury brands like Versace Collection and Burberry have opened shiny new outlet branches in the center of the capital city. This means that Mongolians have much more disposable income to spend than they did a few years ago. According to the Mongolian National Statistics Office (NSO), monthly average expenditure on all types of consumption per household has significantly increased between 2012 and 2017; on clothing alone it increased by over 500% between 2003 and 2011.
Mongolians are consuming a larger number of higher quality goods than ever before. The retail sector has expanded accordingly, rising from less than 14% of GDP in 2008 to 19% in 2011 even as GDP itself increased by nearly 36% during the same period.
Developers have tended to focus on high-end office and luxury residential complexes over the last few years and have neglected the needs of a growing consumer class. Rental prices in the retail sector have yet to catch up to the growth of sales. The per meter rental price in Ulaanbaatar’s prime retail locations is still significantly below that of comparable locations in other emerging Asia markets.
The size, growing urbanization, and economic development of Mongolia are drawing retailers. With its robust retail track record, relatively low costs and bright macro outlook, Mongolia looks set for unparalleled consumer and retail spending over the next decade. More than 100 international brands have opened up exclusive franchises or wholly owned outlets in Ulaanbaatar to date, the majority in the past eight years.
At the same time, there is still a need for brands targeted at mass market consumers to cater to the growing local appetite for conspicuous consumption, because many Mongolians go abroad for shopping and buying designer goods.
Although traditional retail still exists with Mongolian consumers doing their daily shopping in open markets and through informal channels, shopping habits continue to evolve. Preference for organised retail formats and global brands is growing, creating more opportunities for international players. Apparel and luxury retailers are also expanding. Youthful clothing brands such as Mango, Sisley and Adidas, who entered the market in recent years, are doing great because the Mongolian people are open to giving new brands and new products a try.
Retailers’ interest in any country depends on development of new high quality shopping centers corresponding to world standards. The Shangri-La complex was completed in 2016, giving international retailers an opportunity to set better terms of occupancy in the business district of Ulaanbaatar. The country has numerous large shopping malls in the city, namely Central Tower, Khunnu Mall, Naadam Center, and Naran Mall, among others. Convenience stores and mini-marts have started growing in Mongolia in recent years. Trendy food and beverage destinations targeting young customers (65 percent of the Mongolian population is aged 35 or under) have newly opened in the city, such as Tom N Toms Coffee, Coffee bean, Tous Les Jours, KFC, and Burger King.
Investment opportunities in retail segment across three primary themes:
LEAPFROGGING INTO THE DIGITAL ERA
Rapid expansion of smartphone market with 1.7 million users is recorded. AI based intellectual work of Mongolian youth is growing and the first fintech financial service company LendMN launched its initial IPO at the Mongolian Stock Exchange (MSE).
THE RISING URBAN MIDDLE CLASS
More and more households falling in the middle-income segment. According to the forecast the number of households in this segment to pick up to 34.1% in 2022, up from 12.7% in 2018.
Bank of Mongolia has launched a campaign called “Digital payments in a digital era” in order to promote the widespread adoption of digital currencies and payments. In many ways, the rise of retail in Mongolia appears to mirror the experience of other emerging markets, particularly the so-called “Asian Tiger” economies of the 1990s and 2000s. Mongolia’s demographics, climate, consumption patterns, and unique cultural heritage differentiate it from the rest of the emerging economy pack. Its strong retail track record, low costs and bright macro outlook will propel Mongolia for unparalleled consumer and retail spending over the next decade. Many international partnerships have significantly exceeded their owners’ expectations, as the appetite for luxury and mid range western brands within Ulaanbaatar has proved to be more substantial than companies’ projections thought possible.
Asia Pacific Investment Partners is the oldest, largest, and most reputable Mongolian real estate agent.
We are a real estate intermediary and advisory firm offering agency, representation, property, management, property valuations, interior design, furnishing and financial intermediation services.
Company website: www.apip.com
JLL's City Momentum Index reveals where in the world to find highest levels of socio-economic and commercial real estate dynamism.
Asia Pacific is home to 19 of the top 20 cities, highlighting the continuing shift of fast urban growth from the West to the East, according to the sixth City Momentum Index published by JLL. The absence of European and American cities demonstrates a marked East-West growth divide, reflecting Asia's continued rapid urbanization and economic growth, driven by globalization, innovation and demographic factors. Overall, Indian and Chinese cities dominate the rankings, accounting for three quarters of the top 20. Leading the pack are Indian cities Bengaluru and Hyderabad, followed by Vietnam's Hanoi in third place. The only non Asian city on the list is Nairobi, in sixth place, which is heavily influenced by significant amounts of infrastructure-focused investment from China.
Jeremy Kelly, Director of Global Research at JLL says: "Asia continues to show strong momentum, with cities that are successfully expanding their innovation economy punching above their weight in terms of attracting capital, companies and people. "It's clear that the tech sector is a key driver of both real estate and economic momentum–driven by large technology firms as well as dynamic start-ups in cities like Bengaluru, Hyderabad, Ho Chi Minh City and Shenzhen."
Although the global economic cycle is in its late stages, there are still many cities in the world where real estate and economic growth continue to be robust. But while strong growth brings opportunities for economic and social development, it also brings challenges that cities must address to ensure short-term growth transitions into long-term momentum. Investing in infrastructure and greater transparency is essential to facilitate this transition.
Kelly adds: "These cities need to address the environmental and social impacts of rapid growth such as social inequality, congestion and environmental degradation. The provision of smart, efficient and productive real estate and increased transparency are key factors in driving long-term, sustainable growth."
Investment in transformative real estate drives growth Thoughtful and innovative development–such as regeneration projects with a long-term vision that nurture new businesses and improve lives–is essential, as are largescale infrastructure projects that help combat problems around congestion and improve accessibility, according to Kelly. Manila (ranked 12 in this year's Index), for example, is one of the densest cities in the world, with an expanding population. The government has committed to an extensive infrastructure building program, 'Build Build Build', which includes more than 2,000 projects. These are expected to improve congestion, increase power reliability, reduce the impact of climate change, and redevelop urban areas.
Smart infrastructure and technology create liveable cities Technological innovation in the form of greener and smarter buildings also plays an important role in answering the environmental challenges brought about by rapid growth. The Chinese city of Xi'an, ranked ninth in this year's Index, has installed an innovative 100-metre-tall air purifying tower to reduce smog and improve air quality.
FDI crucial for long-term momentum Sustainable long-term momentum and a maturing economy are often supported by long-term foreign direct investment (FDI) and transparent governance. India's fastest growing cities have been successful over recent years, attracting high levels of FDI, with structural reforms (including the Real Estate Regulation and Development Act), encouraging more real estate investment from foreign buyers. A similar story is playing out in Chinese cities, such as Beijing and Shanghai, which are both on the cusp of joining the ranks of the world's transparent real estate markets. "Transparency is vital in securing the long-term investment that leads to sustainable growth. With strong governance and planning, the private sector can work with city governments to drive change and bring benefits to the real estate market and wider commerciality of a city," concludes Kelly.
Methodology: JLL's City Momentum Index measures momentum for 131 of the world's most commercially active cities by tracking a range of socio-economic and commercial real estate indicators over a three-year period to identify the urban economies and real estate markets undergoing the most rapid expansion. The City Momentum Index presents a weighted overall score for the sub-scores of 20 variables. For each variable the model calculates a score based on the city's performance relative to the distribution of all 131 city regions, scaled from zero to one. The top-scoring city for each variable has a value of one, while the lowest-scoring city receives a value of zero. Variables focus on indicators of socioeconomic momentum and commercial real estate momentum. All real-estate data is sourced to JLL. Non-real estate data is drawn from a wide range of sources that includes Oxford Economics, United Nations, ACI, GaWC and fDI Markets. The Index also sources data from many national statistical offices.
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. Our vision is to reimagine the world of real estate, creating rewarding opportunities and amazing spaces where people can achieve their ambitions. In doing so, we will build a better tomorrow for our clients, our people and our communities. JLL is a Fortune 500 company with operations in over 80 countries and a global workforce of 88,000.
For further information, visit www.jll.com
France’s ‘Silicon Valley’
Over the centuries, many Lyonnais have made their mark in the history of science, art and creation: the Lumière brothers (inventors of cinema), André Ampère (for his achievements in Physics), and Claude Bernard & Marcel Mérieux (in the field of medicine).
Lyon has always been a land of innovation and it continues to develop research centres and scientific clusters at the cutting edge of life sciences, green-tech and digital technology.
Because it is a dynamic city that embraces growth and innovation, Lyon rivals a number of major European cities: > Lyon has the 2nd highest number of patents filed in France. > Spending on R&D in the Rhône-Alpes region is comparable to that of Finland, Denmark, Madrid and Barcelona combined. > R&D: 5,6 billion euros is invested in the region annually (12% of the national total).
Moreover, 5 international clusters are located in Lyon:
Among other flagship projects, the Confluence district is one of the most ambitious plans to extend a city centre in Europe! Designed over 150 hectares, the Lyon-Confluence project will double the size of the city centre by 2025, while adhering to the climate plan.
1st smart city in France | 2nd digital cluster in France | 600 public and private laboratories
Both a business and residential district, LyonConfluence has already attracted a number of investors who are seduced by its location between the Saône and Rhône rivers, the multiple transport modes that serve the area and its proximity to the historic centre.
Lyon has also played a pioneering role in other innovations in the region, such as a city bike system to encourage citizens to adopt environmentally-friendly behaviour; Lyon’s Vélo'V, gave rise to the Parisian Vélib'. The soft modes tunnel to Croix-Rousse, which can be taken by pedestrians and cyclists, is another example. Moreover, a 24hr self-service car-sharing system is on the rise in Lyon foreshowing the transport modes of tomorrow’s city.
The Lyon Gerland Biodistrict
With 5,000 jobs in health and biotech, 30 public laboratories and over 2,750 researchers concentrated over one hundred hectares, the Lyon-Gerland Biodistrict was launched in 2014. This district is a hive of innovation that groups together higher education & research establishments, high level infrastructure, key industrial players and a growing number of SMEs specialised in human and animal health. At its head are world renowned companies: Sanofi, Mérial, Genzyme among others.
Lyon French Tech, France’s ‘Silicon Valley’
Lyon has been awarded the ‘Métropole French Tech’ label, thanks to an enterprising digital ecosystem (including some of France’s biggest players), an ambitious development strategy, motivated actors, operational programmes to serve the growth and visibility of start-ups, dedicated workspace and infrastructure to aid the development of these companies. This label is the result of a strong collective effort within this digital ecosystem and by all of its actors and it proves that Lyon creates the right conditions for start-ups to develop and expand internationally through support programmes, infrastructure and networking.
For more info: www.lyonfrenchtech.com