Monaco Economic Board, Monaco Association of Financial Activities and Monaco Yacht Show
Presentation from Monaco Ambassador to HNWI, Family Offices and investors. London, May 2017, Monaco Ambassy.
Monaco’s allure is easy to explain: an outstanding political and economic stability, glamour, a favourable climate, a rich cultural heritage, privacy and excellent transport links. While tax is often cited as one of the reasons to move and live in Monaco, its other advantages play actually a major role: people want to move to and set up their company in Monaco for multiple reasons such as security, quality of life and the energy driving its economy and financial community. Famous for its F1 Grand Prix and casinos, the Principality of Monaco is far less well known from a business angle. People can work as efficiently in Monaco as they can from London, Frankfurt or Paris. Monaco’s heliport is just six minutes away from Nice airport - the second busiest hub for business aviation. The Country has undertaken a radical overhaul, modernisation and development of its economy Increasingly it has established itself as a business centre in the heart of Europe. GDP is €5.64 billion with growth of 5.4%. GDP per capita at €69,000 is one of the highest in the world. GDP per employee is €109,000. On a territory covering just 2km2, Monaco boasts a highly skilled workforce with 52,000 jobs and 5,000 companies operating in added-value non-polluting sectors. Its economy is balanced and diversified thanks to the vision of a succession of Princes of Monaco. It is a key factor in Principality prosperity and enables to deal better with crises. For example, finance and insurance represents 16.8% of GDP; scientific & technical activities, administrative and support services (corporate) 14.9%; construction 12.7%; hospitality and retail 12.5%; international trade 9.6%; real estate 8.7%; administration, education, health and social welfare 7.2%; industry 4.9%; personal services 4.7%; information communication (mainly ICT) 4.4%; and finally transport/storage 3.5%. Yachting is also an important and growing sector in Monaco. With more than 300 companies, 1555 employees, it represents nearly 5% of GDP of Monaco and is the 4th industry in the Principality. Monaco is also a must for the enthusiasts of the yachting sector, an intriguing fact - out of the 100 largest owners of the world 24 are members of the Yacht Club of Monaco. Monaco’s model is sustainable due in part to the fact it is a debt-free economy with reserve funds equal to four years of state expenditure (two in liquid assets) and a balanced budget (€1 billion) of which 30% on average has been invested in infrastructure and amenities over the last 50 years. Monaco also enjoys unrivalled political stability (seven centuries), but also social and fiscal (which is not to say there is no tax – indirect rather than direct taxation is the favoured route. VAT at 20% represents 50% of state revenue). The balance between a free-market economy and the social welfare is unique. With regards to fiscal transparency and cooperation, Monaco has a structure in place to combat money laundering and terrorism financing unanimously recognised by international bodies like GAFI. Monaco has also been included in the OCDE “white list” that abide by international tax law since 2009. Major projects (for example, the sea extension) comply with environmental restrictions to meet the growing needs of residents and investors. More generally, the Government policy promotes renewable energy and sustainable mobility, the goal being to cut emissions by 50% by 2030 and be carbon neutral by 2050. Monaco has an international business environment where 140 nationalities comprise an extensive and accessible business network that is very accessible. Being situated in the heart of the Mediterranean basin and part of the Euro Zone, Monaco is a gateway to Africa, and has international influence abroad through an extensive diplomatic and consular corps. The quality of life is unique and it is not just about the mild climate and strategic location between sea and mountains. Monaco is also a multi-cultural place where 37,000 inhabitants from 140 nationalities live in harmony who enjoy a maximum level of security (1 policeman per 70 residents and a highly effective CCTV system), excellent health care and education systems, and a packed cultural and social calendar of international events (700 a year). And finally, 25% of the country is dedicated to green spaces and 30% of electricity is green - ecology is second nature.
The MEB is a quite young organisation that was set up in 1999 to promote Monaco as an international business hub, with a dynamic and diversified economy. The entity is supported by Monaco’s Government. Its board integrates is composed of nearly all key economics actors of Monaco but also by its nearly 500 company members - membership is on a voluntary basis. Moreover, the MEB has been Monaco’s National Committee to the ICC since 2001 (ICC MONACO). MEB’s priorities consist in developing Monaco’s entrepreneurial base and being proactive in making its networks operate effectively for all those involved. Contribution to the local economy as the Government’s operational arm, the MEB is in permanent contact with people in business. It is well briefed and acutely aware of their concerns and therefore well able to respond, often working with local authorities, public and private. The MEB intention is to build and strengthen Monaco’s working relationships with companies and financial institutions at home and abroad. Its missions are to attract new businesses, new entrepreneurs to bring their economic expertise and spheres and set up business activities within the Principality of Monaco and to support the development of Monaco companies on a local and international levels.