Madrid is the city that never sleeps, tirelessly working 24 hours a day. With its clean, safe streets bustling with people, and shops and restaurants full seven days a week, it conveys to its citizens a city evolving at a boundless hyper-speed.

Its skyline is constantly reshaped, with skyscrapers becoming landmarks. The Torre Madrid Norte, set to be one of Europe's foremost business hubs at 330 meters tall, will surpass the current Torre de Cristal at 249 meters and London's tallest, The Shard. The infrastructure in this new space will house one of the world's most modern exchanges, Chamartín, accommodating 105,000 passengers daily. Madrid's new era is marked by the colossal and complex expansion of Torres Colón, Madrid Nuevo Norte, the refurbishment of Barajas airport, the massive overhaul of Azca: Renazca, La Paz Hospital, the new Valdecarros district, and the remodeled Santiago Bernabéu stadium and its surroundings, transforming into a new city center.

Madrid's governance model has become a benchmark of economic success internationally, praised by economists worldwide for its leadership in European growth. Its tax policy, focused on supporting businesses and citizens with significant tax savings, contributes to its success.

Investors globally are eyeing Madrid, a city whose “greenfield” economic policy and new business engagement offices abroad (recently in London and Mexico) attracted 64.7% of all foreign investment in Spain in 2022, ranking second in Europe and twelfth globally. Its primary investors include top-tier countries like the USA, Australia, and the UK, further enhancing its credibility.

Reports consistently place Madrid among the "top ten" cities for business, with “Z-Yen Partners” ranking it fourth. It's becoming a hub for startups, corporations, banks, and institutions, with a GDP of €230.018 billion and a per capita GDP of €34,916, leading in service (82% of GDP) and industry (10% of GDP). With exports of €30.510 billion and imports of €60.884 billion, Madrid's economic policies, established about a decade ago, have fostered investor confidence and competitiveness among European cities like Frankfurt, Paris, London, and Madrid itself.

As of June 2022, the Community of Madrid's population reached 6.825 million, with 800,000 foreigners and 3.155 million in the city itself. It also has a substantial non-resident floating population of 1.4 million, necessitating round-the-clock services and infrastructure, with 18% of its budget dedicated to this group.

Of the 5000 multinationals in Spain, 1,300 are based in Madrid and 650 in its metropolitan area, accounting for 40% of these firms. According to a PWC report, Madrid hosts 7000 foreign companies, with two-thirds of the Spanish companies in Forbes' 2000 Global Companies headquartered there. The city also attracts businesses from other regions for its economic and political stability.

Madrid has leveraged its public and private universities as a wealth generator, leading to significant private investment in the sector. It's home to six public universities, about 30 business schools, and 13 private universities, including a Catholic one. This influx has created a vibrant science, research, employment, and startup ecosystem, generating €440 million in revenue and nearly 3000 new jobs.

Madrid's economic stability and growth are drawing attention globally, shifting the dynamics of Latin American immigration from predominantly labor to top entrepreneurs and companies establishing their base in Madrid, fostering business, employment, and investment opportunities.

Today's Grand Madrid possesses the economic capacity, leadership, strength, energy, and talent to undertake projects of immense attraction, solidifying its status as Europe's moral capital while its skyline evolves at an unparalleled pace.

Author: Dr. José Daniel Barquero Cabrero. Professor and Professor of Economics and Business and CEO of SER, Strategic Economic Relations.

Copyright 2023 RACEF. Royal Academy of Economic and Financial Sciences.