The cities shaping the future
By Ben Simpfendorfer, Matthew Tucker

May 19, 2026

Key Insights

  • Traditional leaders remain, but emerging megacities are challenging where value is created. CEOs are reallocating capital and talent toward them as market growth, geopolitics, and technology disrupt incumbents.
  • International business density and connectivity underpin city leadership. High densities of multinationals create network effects, deeper talent pools, and faster scaling, while strong connectivity links benefit reach and coordination.
  • New drivers of city competitiveness are emerging. Sovereign wealth funds and homegrown innovation are lowering barriers for new contenders.
  • Geopolitical tensions are expanding the urban portfolio. Firms need diversification and flexibility rather than reliance on incumbents for risk and agility gains.
  • Local city clusters amplify competitiveness, offering greater resilience, specialization, and scale than any single location alone.

Key Insights

  • Traditional leaders remain, but emerging megacities are challenging where value is created. CEOs are reallocating capital and talent toward them as market growth, geopolitics, and technology disrupt incumbents.
  • International business density and connectivity underpin city leadership. High densities of multinationals create network effects, deeper talent pools, and faster scaling, while strong connectivity links benefit reach and coordination.
  • New drivers of city competitiveness are emerging. Sovereign wealth funds and homegrown innovation are lowering barriers for new contenders.
  • Geopolitical tensions are expanding the urban portfolio. Firms need diversification and flexibility rather than reliance on incumbents for risk and agility gains.
  • Local city clusters amplify competitiveness, offering greater resilience, specialization, and scale than any single location alone.

For CEOs of global businesses, a key question is which cities will support corporate advancement over the next decade in a world disrupted by geopolitics and technological change. Traditional global leaders such as New York, London, Tokyo, and Paris remain critical centers for finance, regulation, and talent. Their scale, connectivity, and institutional depth continue to support headquarters' functions and global coordination, and they will remain strong incumbents in the future.

But the operating environment is shifting faster than ever. Emerging market growth, geopolitical fragmentation, and accelerating technological change are reshaping where value is created. A new class of dynamic megacities such as Shanghai and Seoul already rival established incumbents, while rising challengers like Riyadh and Shenzhen are positioning themselves as regional and even global platforms for multinational growth and innovation. Business leaders are responding by deploying capital and people in these expanding centers.

Density and connectivity are core drivers of global city leadership

The common thread among leading and rising cities is international business density. The top 100 cities in our Commercial Hub ranking account for about a third of the global presence of 150 leading multinationals. Cities hosting large concentrations of multinational operations benefit from network effects: shared suppliers, deeper talent pools, stronger service ecosystems, and faster deal flow. For CEOs looking to expand, this density reduces execution risk when entering new markets and shortens time to scale.

Connectivity amplifies these advantages. Cities with strong international air links, domestic hub status, and proximity to other economically active urban centers extend a firm’s effective reach far beyond a single location. Our top-ranked Commercial Hubs are connected by air to an average of 94 international cities and often serve as domestic aviation hubs. For leadership teams, this means fewer offices are needed to deliver broader coverage, lowering coordination costs and making regional platforms more resilient.

The traditional metrics of global leadership also are evolving. Sovereign wealth funds, for example, can invest in companies and technologies that elevate a city’s status. Homegrown innovators, such as AI pioneers or electric vehicle champions, can propel a city onto the global stage. Bold visions that unleash industrial transformation can attract leading multinationals to invest in a city’s development. The barriers to entry for emerging global champions — from developing industrial clusters to streamlining business regulations — have fallen, disrupting the traditional view of city leadership.

Distribution of top 250 cities in our commercial rankings, by region and ranking tier

Source: Oliver Wyman Forum

Top 20 cities supporting next-decade growth

Top 20 cities supporting next-decade growth

For CEOs of global businesses, a key question is which cities will support corporate advancement over the next decade in a world disrupted by geopolitics and technological change. Traditional global leaders such as New York, London, Tokyo, and Paris remain critical centers for finance, regulation, and talent. Their scale, connectivity, and institutional depth continue to support headquarters' functions and global coordination, and they will remain strong incumbents in the future.

But the operating environment is shifting faster than ever. Emerging market growth, geopolitical fragmentation, and accelerating technological change are reshaping where value is created. A new class of dynamic megacities such as Shanghai and Seoul already rival established incumbents, while rising challengers like Riyadh and Shenzhen are positioning themselves as regional and even global platforms for multinational growth and innovation. Business leaders are responding by deploying capital and people in these expanding centers.

Density and connectivity are core drivers of global city leadership

The common thread among leading and rising cities is international business density. The top 100 cities in our Commercial Hub ranking account for about a third of the global presence of 150 leading multinationals. Cities hosting large concentrations of multinational operations benefit from network effects: shared suppliers, deeper talent pools, stronger service ecosystems, and faster deal flow. For CEOs looking to expand, this density reduces execution risk when entering new markets and shortens time to scale.

Connectivity amplifies these advantages. Cities with strong international air links, domestic hub status, and proximity to other economically active urban centers extend a firm’s effective reach far beyond a single location. Our top-ranked Commercial Hubs are connected by air to an average of 94 international cities and often serve as domestic aviation hubs. For leadership teams, this means fewer offices are needed to deliver broader coverage, lowering coordination costs and making regional platforms more resilient.

The traditional metrics of global leadership also are evolving. Sovereign wealth funds, for example, can invest in companies and technologies that elevate a city’s status. Homegrown innovators, such as AI pioneers or electric vehicle champions, can propel a city onto the global stage. Bold visions that unleash industrial transformation can attract leading multinationals to invest in a city’s development. The barriers to entry for emerging global champions — from developing industrial clusters to streamlining business regulations — have fallen, disrupting the traditional view of city leadership.

For CEOs of global businesses, a key question is which cities will support corporate advancement over the next decade in a world disrupted by geopolitics and technological change. Traditional global leaders such as New York, London, Tokyo, and Paris remain critical centers for finance, regulation, and talent. Their scale, connectivity, and institutional depth continue to support headquarters' functions and global coordination, and they will remain strong incumbents in the future.

But the operating environment is shifting faster than ever. Emerging market growth, geopolitical fragmentation, and accelerating technological change are reshaping where value is created. A new class of dynamic megacities such as Shanghai and Seoul already rival established incumbents, while rising challengers like Riyadh and Shenzhen are positioning themselves as regional and even global platforms for multinational growth and innovation. Business leaders are responding by deploying capital and people in these expanding centers.

Top 20 cities supporting next-decade growth

Density and connectivity are core drivers of global city leadership

The common thread among leading and rising cities is international business density. The top 100 cities in our Commercial Hub ranking account for about a third of the global presence of 150 leading multinationals. Cities hosting large concentrations of multinational operations benefit from network effects: shared suppliers, deeper talent pools, stronger service ecosystems, and faster deal flow. For CEOs looking to expand, this density reduces execution risk when entering new markets and shortens time to scale.

Connectivity amplifies these advantages. Cities with strong international air links, domestic hub status, and proximity to other economically active urban centers extend a firm’s effective reach far beyond a single location. Our top-ranked Commercial Hubs are connected by air to an average of 94 international cities and often serve as domestic aviation hubs. For leadership teams, this means fewer offices are needed to deliver broader coverage, lowering coordination costs and making regional platforms more resilient.

The traditional metrics of global leadership also are evolving. Sovereign wealth funds, for example, can invest in companies and technologies that elevate a city’s status. Homegrown innovators, such as AI pioneers or electric vehicle champions, can propel a city onto the global stage. Bold visions that unleash industrial transformation can attract leading multinationals to invest in a city’s development. The barriers to entry for emerging global champions — from developing industrial clusters to streamlining business regulations — have fallen, disrupting the traditional view of city leadership.

Distribution of top 250 cities in our commercial rankings, by region and ranking tier

Source: Oliver Wyman Forum

Geopolitics can widen the portfolio of cities for businesses

Geopolitics will intensify this change. In a world designed for globalization and the seamless flow of goods and capital, multinationals could cluster in a few giant hubs. But today’s rising tensions and policy divergence means companies will need a broader portfolio of locations. New York still ranks high as a global champion, for example, but a Chinese multinational will be equally focused on opportunities across the Global South to benefit from China’s strengthening relations with the latter group of countries in a politically disrupted world.

We expect the number and diversity of competitive global cities to expand. Already, 32 of our top 100 Commercial Hubs are located in recently emerged markets, such as Chennai or Guangzhou, places that likely would have been overlooked 20 years ago. As technology lowers coordination costs and governments compete more actively for investment, more regions will be globally relevant. This will intensify competition, not just between cities but between alternative geographic configurations.

For business leaders, this shift represents both risk and opportunity. Companies that remain anchored to a narrow set of incumbent cities may face higher costs and reduced agility. Those that adapt early by designing flexible, system-based footprints will gain a structural advantage in a more fragmented and fast-moving global economy. The race is no longer just about locating in the top-ranked cities; it is about having the right portfolio of locations worldwide.

Clustering cities can multiply competitiveness for businesses

Business leaders also should look at a city’s surrounding ecosystem. Hong Kong, for example, is a long-standing global leader. But increasingly its strength lies in being part of a sprawling, dynamic triangle with neighboring Shenzhen and Guangzhou. All three are commercial leaders with a range of capabilities, from global investment banks and manufacturing giants to technology innovators. Taken together these cities are larger than Tokyo, with a combined GDP of $1.4 trillion and 48 million people living within a one-hour high-speed rail trip.

Similar clusters include Dallas-Austin-Houston, Munich-Stuttgart-Zurich, and Singapore-Johor Bahru-Batam. Each city within these triangular clusters contributes distinct strengths, making the group more competitive together than any city individually. To this end, companies should ask which collection of cities provides the best redundancy, specialization, and scale. This might involve unbundling functions, such as placing executive leadership in Singapore, data centers in Johor, and manufacturing in Batam.

It is time to refresh how we think about global city leaders. The era of a small, fixed number of dominant cities is giving way to a more fluid and competitive landscape, shaped by geopolitics, technology, and policy ambition, such as Saudi Arabia’s Vision 2030 plan or Malaysia’s Madani Economy, which aims to boost growth and competitiveness and improve quality of life. The result provides more opportunities for city leaders to attract new companies and more chances for CEOs to align their operations with city ambitions.

Most connected cities worldwide

Number of cities served by each city's combined airports
Source: Oliver Wyman Planestats; Oliver Wyman Forum analysis

Geopolitics can widen the portfolio of cities for businesses

Geopolitics will intensify this change. In a world designed for globalization and the seamless flow of goods and capital, multinationals could cluster in a few giant hubs. But today’s rising tensions and policy divergence means companies will need a broader portfolio of locations. New York still ranks high as a global champion, for example, but a Chinese multinational will be equally focused on opportunities across the Global South to benefit from China’s strengthening relations with the latter group of countries in a politically disrupted world.

We expect the number and diversity of competitive global cities to expand. Already, 32 of our top 100 Commercial Hubs are located in recently emerged markets, such as Chennai or Guangzhou, places that likely would have been overlooked 20 years ago. As technology lowers coordination costs and governments compete more actively for investment, more regions will be globally relevant. This will intensify competition, not just between cities but between alternative geographic configurations.

For business leaders, this shift represents both risk and opportunity. Companies that remain anchored to a narrow set of incumbent cities may face higher costs and reduced agility. Those that adapt early by designing flexible, system-based footprints will gain a structural advantage in a more fragmented and fast-moving global economy. The race is no longer just about locating in the top-ranked cities; it is about having the right portfolio of locations worldwide.

Most connected cities worldwide

Number of cities served by each city's combined airports'
Source: Oliver Wyman Planestats; Oliver Wyman Forum analysis

Clustering cities can multiply competitiveness for businesses

Business leaders also should look at a city’s surrounding ecosystem. Hong Kong, for example, is a long-standing global leader. But increasingly its strength lies in being part of a sprawling, dynamic triangle with neighboring Shenzhen and Guangzhou. All three are commercial leaders with a range of capabilities, from global investment banks and manufacturing giants to technology innovators. Taken together these cities are larger than Tokyo, with a combined GDP of $1.4 trillion and 48 million people living within a one-hour high-speed rail trip.

Similar clusters include Dallas-Austin-Houston, Munich-Stuttgart-Zurich, and Singapore-Johor Bahru-Batam. Each city within these triangular clusters contributes distinct strengths, making the group more competitive together than any city individually. To this end, companies should ask which collection of cities provides the best redundancy, specialization, and scale. This might involve unbundling functions, such as placing executive leadership in Singapore, data centers in Johor, and manufacturing in Batam.

It is time to refresh how we think about global city leaders. The era of a small, fixed number of dominant cities is giving way to a more fluid and competitive landscape, shaped by geopolitics, technology, and policy ambition, such as Saudi Arabia’s Vision 2030 plan or Malaysia’s Madani Economy, which aims to boost growth and competitiveness and improve quality of life. The result provides more opportunities for city leaders to attract new companies and more chances for CEOs to align their operations with city ambitions.

Geopolitics can widen the portfolio of cities for businesses

Geopolitics will intensify this change. In a world designed for globalization and the seamless flow of goods and capital, multinationals could cluster in a few giant hubs. But today’s rising tensions and policy divergence means companies will need a broader portfolio of locations. New York still ranks high as a global champion, for example, but a Chinese multinational will be equally focused on opportunities across the Global South to benefit from China’s strengthening relations with the latter group of countries in a politically disrupted world.

We expect the number and diversity of competitive global cities to expand. Already, 32 of our top 100 Commercial Hubs are located in recently emerged markets, such as Chennai or Guangzhou, places that likely would have been overlooked 20 years ago. As technology lowers coordination costs and governments compete more actively for investment, more regions will be globally relevant. This will intensify competition, not just between cities but between alternative geographic configurations.

For business leaders, this shift represents both risk and opportunity. Companies that remain anchored to a narrow set of incumbent cities may face higher costs and reduced agility. Those that adapt early by designing flexible, system-based footprints will gain a structural advantage in a more fragmented and fast-moving global economy. The race is no longer just about locating in the top-ranked cities; it is about having the right portfolio of locations worldwide.

Most connected cities worldwide

Number of cities served by each city's combined airports
Source: Oliver Wyman Planestats; Oliver Wyman Forum analysis

Clustering cities can multiply competitiveness for businesses

Business leaders also should look at a city’s surrounding ecosystem. Hong Kong, for example, is a long-standing global leader. But increasingly its strength lies in being part of a sprawling, dynamic triangle with neighboring Shenzhen and Guangzhou. All three are commercial leaders with a range of capabilities, from global investment banks and manufacturing giants to technology innovators. Taken together these cities are larger than Tokyo, with a combined GDP of $1.4 trillion and 48 million people living within a one-hour high-speed rail trip.

Similar clusters include Dallas-Austin-Houston, Munich-Stuttgart-Zurich, and Singapore-Johor Bahru-Batam. Each city within these triangular clusters contributes distinct strengths, making the group more competitive together than any city individually. To this end, companies should ask which collection of cities provides the best redundancy, specialization, and scale. This might involve unbundling functions, such as placing executive leadership in Singapore, data centers in Johor, and manufacturing in Batam.

It is time to refresh how we think about global city leaders. The era of a small, fixed number of dominant cities is giving way to a more fluid and competitive landscape, shaped by geopolitics, technology, and policy ambition, such as Saudi Arabia’s Vision 2030 plan or Malaysia’s Madani Economy, which aims to boost growth and competitiveness and improve quality of life. The result provides more opportunities for city leaders to attract new companies and more chances for CEOs to align their operations with city ambitions.

Administrative bodies

Case study

Multilateralism may have fallen out of favor in many parts of the world, but multilateral agencies are as popular as ever. Their headquarters and offices are magnets for international expertise, connectivity, and relevance, and cities are eager to win and retain a piece of the action. Companies in turn can benefit from this clustering of international talent.

Brussels is the effective capital of Europe, home to the European Union’s core institutions and thousands of diplomats, lawyers, lobbyists, and think tank experts who interact with those bodies. Strasbourg and Luxembourg also host major EU agencies and regular council and parliamentary meetings, while Frankfurt is home to the European Central Bank.

New York and Washington, DC, are well known as headquarters for the United Nations and the International Monetary Fund, respectively, making them two of the largest global hubs of diplomatic activity. Bangkok, Manila, Abidjan, Nairobi, and Mexico City host a range of United Nations bodies and regional development banks, which raise those cities’ global stature and generate local economic impact.

While most multilateral bodies are very long-term tenants, city leaders have opportunities to attract some of this activity. The UK’s exit from the European Union cost it two headquarters, as the EU relocated the European Medicines Agency to Amsterdam and shifted the European Banking Authority to Paris. The United Nations, meanwhile, plans to decentralize more of its operations by moving the headquarters of three of its major programs from New York City to Nairobi in 2026. In response to those moves, Switzerland in 2025 announced a $329 million support package in an effort to retain existing UN agencies in Geneva.

Gulf cities have courted multinational organizations to strengthen their international roles. Riyadh is home of the World Tourism Organization’s first office in the Middle East. Dubai created the International Humanitarian City, a large free zone that houses offices and warehouses for nine UN agencies. And the Asian Infrastructure Investment Bank recently chose Abu Dhabi as the site for its first overseas office, underscoring the growing trade and financial ties between Asia and the Middle East.

Creative industries: A burgeoning city growth driver

Case study

Cities traditionally have focused on tangible measures of development, such as attracting businesses, building infrastructure, and deploying technology. In today’s world, they are increasingly promoting cultural and creative industries as engines of growth.

These industries already contribute over 3% of global GDP and employ up to 50 million people, according to UNESCO. Even more important for cities, creative industries have a multiplier effect that boosts tourism, benefits local hotels and restaurants, and generates a buzz factor that attracts business talent and burnishes a city’s brand.

London and New York are exemplars of this phenomenon. London boasts a vibrant arts and music scene, a booming film and television business, and a dynamic fashion sector, among others, all of which act as magnets for investment and talent. The arts and culture sector is an $80 billion industry, and the city is building on that foundation with a range of measures, including a Creative Enterprise Zone to create 80,000 square meters of affordable workspace for creative firms by 2028.

New York City has a similarly large and vibrant creative sector, employing 440,000 people and generating, directly or indirectly, $150 billion in economic activity. The sector continues to recover from the pandemic slump, with Broadway theaters setting new highs of $1.9 billion in gross ticket sales and 14.7 million attendees in the 2024-25 season. The city’s 24/7 nightlife and iconic civic spaces — from Central Park to the High Line elevated promenade — provide a cultural background with few global rivals.

Every region has its cultural hotspots, and cities are eager to leverage their “soft” assets. In the wake of the pandemic, Tokyo has emphasized digital technology as a way of bringing art to the people and connecting local artists with a global audience. Seoul, the home of K-pop, is investing $100 million in a digital media city for content creators, virtual and augmented reality creatives, and e-sports enthusiasts. Singapore is using technology to support artists and arts organizations, including a new digital platform that enables people to explore and book cultural events around the city and tour museums and galleries.

Elsewhere, Abu Dhabi is investing heavily in the Saadiyat Cultural District to offer an array of global institutions and programming, including a new branch of the Guggenheim Museum designed by the late Frank Gehry. Mexico City has leveraged the telenovela formula to build the largest film and television industry in Latin America. And Lagos has developed a thriving music industry out of the global popularity of Afrobeat music.

Culture is a basic need of humanity, but distinct by geography, ethnicity, language, and tradition. That combination spells opportunity for the world’s cities.

Administrative bodies

Case study

Multilateralism may have fallen out of favor in many parts of the world, but multilateral agencies are as popular as ever. Their headquarters and offices are magnets for international expertise, connectivity, and relevance, and cities are eager to win and retain a piece of the action. Companies in turn can benefit from this clustering of international talent.

Brussels is the effective capital of Europe, home to the European Union’s core institutions and thousands of diplomats, lawyers, lobbyists, and think tank experts who interact with those bodies. Strasbourg and Luxembourg also host major EU agencies and regular council and parliamentary meetings, while Frankfurt is home to the European Central Bank.

New York and Washington, DC, are well known as headquarters for the United Nations and the International Monetary Fund, respectively, making them two of the largest global hubs of diplomatic activity. Bangkok, Manila, Abidjan, Nairobi, and Mexico City host a range of United Nations bodies and regional development banks, which raise those cities’ global stature and generate local economic impact.

While most multilateral bodies are very long-term tenants, city leaders have opportunities to attract some of this activity. The UK’s exit from the European Union cost it two headquarters, as the EU relocated the European Medicines Agency to Amsterdam and shifted the European Banking Authority to Paris. The United Nations, meanwhile, plans to decentralize more of its operations by moving the headquarters of three of its major programs from New York City to Nairobi in 2026. In response to those moves, Switzerland in 2025 announced a $329 million support package in an effort to retain existing UN agencies in Geneva.

Gulf cities have courted multinational organizations to strengthen their international roles. Riyadh is home of the World Tourism Organization’s first office in the Middle East. Dubai created the International Humanitarian City, a large free zone that houses offices and warehouses for nine UN agencies. And the Asian Infrastructure Investment Bank recently chose Abu Dhabi as the site for its first overseas office, underscoring the growing trade and financial ties between Asia and the Middle East.

Creative industries: A burgeoning city growth driver

Case study

Cities traditionally have focused on tangible measures of development, such as attracting businesses, building infrastructure, and deploying technology. In today’s world, they are increasingly promoting cultural and creative industries as engines of growth.

These industries already contribute over 3% of global GDP and employ up to 50 million people, according to UNESCO. Even more important for cities, creative industries have a multiplier effect that boosts tourism, benefits local hotels and restaurants, and generates a buzz factor that attracts business talent and burnishes a city’s brand.

London and New York are exemplars of this phenomenon. London boasts a vibrant arts and music scene, a booming film and television business, and a dynamic fashion sector, among others, all of which act as magnets for investment and talent. The arts and culture sector is an $80 billion industry, and the city is building on that foundation with a range of measures, including a Creative Enterprise Zone to create 80,000 square meters of affordable workspace for creative firms by 2028.

New York City has a similarly large and vibrant creative sector, employing 440,000 people and generating, directly or indirectly, $150 billion in economic activity. The sector continues to recover from the pandemic slump, with Broadway theaters setting new highs of $1.9 billion in gross ticket sales and 14.7 million attendees in the 2024-25 season. The city’s 24/7 nightlife and iconic civic spaces — from Central Park to the High Line elevated promenade — provide a cultural background with few global rivals.

Every region has its cultural hotspots, and cities are eager to leverage their “soft” assets. In the wake of the pandemic, Tokyo has emphasized digital technology as a way of bringing art to the people and connecting local artists with a global audience. Seoul, the home of K-pop, is investing $100 million in a digital media city for content creators, virtual and augmented reality creatives, and e-sports enthusiasts. Singapore is using technology to support artists and arts organizations, including a new digital platform that enables people to explore and book cultural events around the city and tour museums and galleries.

Elsewhere, Abu Dhabi is investing heavily in the Saadiyat Cultural District to offer an array of global institutions and programming, including a new branch of the Guggenheim Museum designed by the late Frank Gehry. Mexico City has leveraged the telenovela formula to build the largest film and television industry in Latin America. And Lagos has developed a thriving music industry out of the global popularity of Afrobeat music.

Culture is a basic need of humanity, but distinct by geography, ethnicity, language, and tradition. That combination spells opportunity for the world’s cities.

Administrative bodies

Case study

Multilateralism may have fallen out of favor in many parts of the world, but multilateral agencies are as popular as ever. Their headquarters and offices are magnets for international expertise, connectivity, and relevance, and cities are eager to win and retain a piece of the action. Companies in turn can benefit from this clustering of international talent.

Brussels is the effective capital of Europe, home to the European Union’s core institutions and thousands of diplomats, lawyers, lobbyists, and think tank experts who interact with those bodies. Strasbourg and Luxembourg also host major EU agencies and regular council and parliamentary meetings, while Frankfurt is home to the European Central Bank.

New York and Washington, DC, are well known as headquarters for the United Nations and the International Monetary Fund, respectively, making them two of the largest global hubs of diplomatic activity. Bangkok, Manila, Abidjan, Nairobi, and Mexico City host a range of United Nations bodies and regional development banks, which raise those cities’ global stature and generate local economic impact.

While most multilateral bodies are very long-term tenants, city leaders have opportunities to attract some of this activity. The UK’s exit from the European Union cost it two headquarters, as the EU relocated the European Medicines Agency to Amsterdam and shifted the European Banking Authority to Paris. The United Nations, meanwhile, plans to decentralize more of its operations by moving the headquarters of three of its major programs from New York City to Nairobi in 2026. In response to those moves, Switzerland in 2025 announced a $329 million support package in an effort to retain existing UN agencies in Geneva.

Gulf cities have courted multinational organizations to strengthen their international roles. Riyadh is home of the World Tourism Organization’s first office in the Middle East. Dubai created the International Humanitarian City, a large free zone that houses offices and warehouses for nine UN agencies. And the Asian Infrastructure Investment Bank recently chose Abu Dhabi as the site for its first overseas office, underscoring the growing trade and financial ties between Asia and the Middle East.

Creative industries: A burgeoning city growth driver

Case study

Cities traditionally have focused on tangible measures of development, such as attracting businesses, building infrastructure, and deploying technology. In today’s world, they are increasingly promoting cultural and creative industries as engines of growth.

These industries already contribute over 3% of global GDP and employ up to 50 million people, according to UNESCO. Even more important for cities, creative industries have a multiplier effect that boosts tourism, benefits local hotels and restaurants, and generates a buzz factor that attracts business talent and burnishes a city’s brand.

London and New York are exemplars of this phenomenon. London boasts a vibrant arts and music scene, a booming film and television business, and a dynamic fashion sector, among others, all of which act as magnets for investment and talent. The arts and culture sector is an $80 billion industry, and the city is building on that foundation with a range of measures, including a Creative Enterprise Zone to create 80,000 square meters of affordable workspace for creative firms by 2028.

New York City has a similarly large and vibrant creative sector, employing 440,000 people and generating, directly or indirectly, $150 billion in economic activity. The sector continues to recover from the pandemic slump, with Broadway theaters setting new highs of $1.9 billion in gross ticket sales and 14.7 million attendees in the 2024-25 season. The city’s 24/7 nightlife and iconic civic spaces — from Central Park to the High Line elevated promenade — provide a cultural background with few global rivals.

Every region has its cultural hotspots, and cities are eager to leverage their “soft” assets. In the wake of the pandemic, Tokyo has emphasized digital technology as a way of bringing art to the people and connecting local artists with a global audience. Seoul, the home of K-pop, is investing $100 million in a digital media city for content creators, virtual and augmented reality creatives, and e-sports enthusiasts. Singapore is using technology to support artists and arts organizations, including a new digital platform that enables people to explore and book cultural events around the city and tour museums and galleries.

Elsewhere, Abu Dhabi is investing heavily in the Saadiyat Cultural District to offer an array of global institutions and programming, including a new branch of the Guggenheim Museum designed by the late Frank Gehry. Mexico City has leveraged the telenovela formula to build the largest film and television industry in Latin America. And Lagos has developed a thriving music industry out of the global popularity of Afrobeat music.

Culture is a basic need of humanity, but distinct by geography, ethnicity, language, and tradition. That combination spells opportunity for the world’s cities.

About the authors

Ben Simpfendorfer is a partner at Oliver Wyman, based in Hong Kong. He also leads the Oliver Wyman Forum’s work across Asia Pacific, and works across a range of practices, including geopolitics, public policy, finance, and risk. He also drives the firm’s Asia-Middle East corridor initiatives.

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Matthew Tucker is a partner in Oliver Wyman’s Private Capital practice, based in London. With close to 20 years of experience working across private equity, financial and business services, and fintech, Matt brings extensive and varied expertise that enables him to support investors and entrepreneurs throughout every stage of the investment lifecycle.

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