Global Power City Index 2023: Focus on Amsterdam

December 19, 2023

Despite facing different challenges, such as the Brexit and economical decline due to the COVID-19 pandemic, Amsterdam managed to secure its position as the sixth-ranked city in the Global Power City Index (GPCI), released in November 2023. This index, compiled annually by the Mori Memorial Foundation’s Institute for Urban Strategies, assesses cities based on various criteria, including economy, research and development, cultural interaction, livability, environment, and accessibility.

Examining the economy category, Amsterdam experienced a quite comprehensive ranking since 2020, however notable improvements in livability in this city might drop due to the rising in living costs that the whole country of The Netherlands is experiencing in the past few years.

While comparing Amsterdam to Asian cities, it is notable that Beijing showcased strength in the economy category, closely trailing behind New York and London in third place. Beijing’s performance positioned it as the highest-ranking Asian city in this category. Other cities that demonstrated growth in their scores included London (retaining the top position), Singapore (ranked fifth), and Dubai (entering the top 10 for the first time at eighth place). The key factor contributing to growth in these cities was identified as advancements in cultural interaction and accessibility. Each city received praise for its openness to foreign visitors and its proactive promotion of cultural exchanges.

In addition to the traditional six categories, the foundation introduced a new category this year, “financial center,” which evaluates the strengths and weaknesses of each city’s financial sector using 14 indicators. Amsterdam secured the sixth position in this category, with New York leading. Beijing and Shanghai claimed the fourth and fifth positions, respectively.

As the reasoning behind scoring relatively high in the “financial center” category, Amsterdam boasts a profound legacy of financial innovation, serving as the birthplace for the world’s inaugural central bank, stock exchange, and limited company. Presently, it stands as the nucleus of the Dutch banking sector and a formidable player in the realm of fintech, solidifying its position as one of Europe’s premier financial centers. The city’s financial prominence is underscored by the presence of major Dutch banks, including ABN AMRO and ING, alongside over 50 international banks such as Norinchukin, MUFG, and the European Investment Bank (EIB). Noteworthy accountancy firms, insurance providers, and pension funds also call Amsterdam home. Post-Brexit, international finance companies increasingly choose Amsterdam as well as a reliable base for serving European markets.

Since its establishment in 1602, the Amsterdam Stock Exchange remains a resilient pillar in the heart of the city. What sets Amsterdam apart is its thriving fintech sector, fuelled by a dynamic tech scene, entrepreneurial zeal, and a keen embrace of cutting-edge technologies. The city proves ideal for nurturing fintech enterprises, with both international giants and local startups-turned-unicorns. Established institutions are also delving into AI and blockchain technology, aligning with Amsterdam’s forward-looking approach.

In the realm of sustainable finance, global rankings consistently position Amsterdam among the world’s leaders, reflecting its commitment to innovative solutions that embrace environmentally conscious practices. This financial and fintech ecosystem is further fortified by an internationally oriented, highly educated, and English-speaking workforce.

 

References

I amsterdam . (2022, December 27). About fintech and finance in Amsterdam. Retrieved from I amsterdam : https://www.iamsterdam.com/en/business/key-sectors-for-business/fintech-finance/about

Inoue, Y. (2023, November 9). Tokyo remains third in global power index despite downturn. Retrieved from The Japan Times: https://www.japantimes.co.jp/news/2023/11/09/japan/society/global-city-ranking-tokyo/

Institute for Urban Strategies The Mori Memorial Foundation. (2023). Global Power City Index 2023 Report. Tokyo: The Mori Memorial Foundation.

 

Photo:

https://th.bing.com/th/id/R.da8832aaf2b11b723cb3c5329d458da1?rik=eX87lZtY6c9pkg&riu=http%3a%2f%2fupload.wikimedia.org%2fwikipedia%2fcommons%2f1%2f1c%2fChannel_Amsterdam.JPG&ehk=wL5v32OcT3fhjuIncT5%2fbJF%2blW3evXoqbKUS4uSyYCs%3d&risl=&pid=ImgRaw&r=0

 

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