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Shanghai, Bangalore, Dubai, Bangkok -- so last year.
As we enter the thick of 2006, a new crop of cities is rising as they assume their place among the world's preeminent business hubs.
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These up-and-comers--which span the globe from Asia to Africa to Europe--will be mostly unknown, even to many seasoned travelers. But some jet-set business leaders have fixed on these growing hot spots with unshakable zeal. The allure is irresistible. Next to the world's crowded, smoggy, overpriced business capitals, these cities gleam with the newness of virgin territory.
It should come as no surprise to anyone that the pull of foreign opportunity is robust and growing. U.S. companies spent $229.3 billion in overseas direct investment in 2004, according to the U.S. Department of Commerce's Bureau of Economic Analysis. That's up almost 50% from 2003, and up threefold since 1994.
"Companies are always on the hunt for high growth potential and inefficient capital markets," says Gary Garrabrant, chief executive officer of Equity International, a real estate development firm. "They're also looking for places with a high concentration of young, aspirational professionals."
The cities on our list meet those criteria, though often in wildly different ways. Some already boast of advanced infrastructure, great universities and enthusiastic local governments. Some have even succeeded in attracting big corporate names, such as high-tech giants Intel, Motorola and IBM, and international consortia like Airbus and Galileo.
Other cities are less developed. Their infrastructure tends to be on the weak side, and accommodations for English speakers can be sparse. Corruption is sometimes prevalent, even institutionalized.
In any case, enormous potential awaits the intrepid corporation. Garrabrant cites three obvious but essential elements companies should look for when setting up shop in an emerging metropolis--a receptive government, a growing consumer class and ample land for development.
In formulating our list, we spoke with business leaders, local officials, real estate experts and an academic. We then narrowed our final selection to a group that represented as many continents as possible. The list isn't meant to be comprehensive, but a sampling of the most promising and the most fascinating.
Without a doubt, these cities benefit from being second tier, which would be an insult in almost any other context but a bonus in this case because it means that, like Avis, they're always trying harder. "It's really quite simple," says Garrabrant. "Secondary cities have opportunity, and that's what people are looking for."