The Monaco Economic Board is the entity responsible for developing business within Monaco and internationally, and for also luring business to Monaco. Prospecting missions take them all across the globe, from Australia to Germany. But who exactly is the MEB and what type of businesses are they trying to bring to the Principality? Monaco Life sat down with Director Justin Highman to find out more about one of Monaco’s most important non-profit associations.
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Monaco Life: What is the Monaco Economic Board and why was it created?
Justin Highman: The MEB is in charge of promoting and developing the economy of the Principality. It was previously known as the Chambre de Développement Economique, but the Prince’s Government changed it to the Monaco Economic Board in late 2015. They also renamed and rebranded its two existing departments: Monaco Chamber of Commerce (MCC) and Monaco Invest (MI). The Monaco Chamber of Commerce today has around 530 members – businesses of all sectors and sizes. The Chamber of Commerce is responsible for creating networking opportunities for its members. It’s curious that even though Monaco is only two-square kilometres in size, the entrepreneurs and heads of business do not actually know each other well. Every year, the MCC also invites several international keynote speakers for tailored events, like the ambassador of a country or a renowned chief economist, and also does several international trade missions, including the recent trips to Rostov, Seoul and Shanghai.
The second department is Monaco Invest, which primarily reaches out to entrepreneurs, business owners, CEOs, and high-net worth individuals looking to set up an entity or structure in continental Europe, and then making the case for Monaco as a viable business destination. We promote it as a mini economic hub just like other successful city-states such as Singapore, Hong Kong or the United Arab Emirates. So, with these two departments – one dealing with outbound investment and the other dealing with inbound investment – we are actively working on promoting every part of the economy of the Principality.
How many people make up the MEB?
We are roughly a dozen people here at the MEB, including our chairman Michel Dotta and CEO Guillaume Rose, who is also a member of Monaco’s parliament. We are all very focused, just like Monaco’s population, on the international. That’s why, if you look at our calendar, you will see that it is quite full of international operations. Moreover, as we are a not-for-profit association we operate on members’ annual fees through the Chamber of Commerce and a subsidy from the Prince’s Government.
How has this new entity reinvigorated the business sector of Monaco?
It’s quite impressive the growing number of people that come to our different events in the last few years both nationally and internationally. We aim to provide useful links for business orientated people and entrepreneurs to meet, network and learn, and hopefully do some business. A little but interesting anecdote: participants in our trade missions also create a considerable amount of business that is done within the delegation. Indeed, during the mission the participants get to know each other and realise there are some avenues of business locally, not only internationally, and end up signing contracts between themselves. It happens all the time!
How many events does the MEB do a year?
We do roughly 50 events overall – around 30 by the Chamber of Commerce, 20 organised by Monaco Invest, and the ratio is 70:30 of international events. For example, in the case of a trade mission abroad, the Monaco Chamber of Commerce will get in touch and work with its counterpart in the other country as we are a member of the International Chamber of Commerce (ICC) which allows us to work with other CC’s around the globe. We are also very privileged to be asked sometimes by HSH Prince Albert II to accompany a State visit, such as in India earlier this year and China last year.
Can you tell us more about Monaco Invest?
Monaco Invest does a lot of prospective work. We concentrate our efforts on targets from a choice of sectors that the Principality is renowned for, such as financial services (single family offices in particular), trading, yachting, shipping, healthcare and well-being, and more recently innovation and technology. We work in close cooperation with partners such as MonacoTech, Monaco For Finance / Monaco Association for Financial Activities, Cluster Yachting, the Monaco Yacht Club and the Princess Grace Check Up Unit etc. We, at the same time, choose destinations according to the economic situation and forecasts. We then combine all this in order to unearth and invite to our tailored seminars the targets who could be interested in finding out more about a new international business platform to thrive from. For example, the UK has a successful community in Monaco and significant potential because of the recent changes in the status of non-doms and the political instability surrounding Brexit and its aftermath.
In addition, the MEB works closely with the 10 Promotion Bureaux of the Principality of Monaco located abroad.
Finally, the MEB increasingly focuses on and works very closely with the Ministry of Foreign Affairs, especially our extensive diplomatic corps. This includes the 20 or so Ambassadors of Monaco throughout the world and around 130 Honorary Consuls. It is a very interesting and stimulating global network. We have, in addition, tended to focus on continental European countries including Russia and ex-CIS (Commonwealth of Independent States), because as you know a lot of the entrepreneurs and residents of Monaco are from that zone, so that’s what works best in the Principality to date. However, we know things are evolving and we are and will increase operations in Asia and the Americas and other opportunities as they may arise.
What type of business are you looking to attract to Monaco?
We try to look for entities in sectors that we believe are relevant to the economy of Monaco as mentioned above, but at the same time entities that don’t require large amounts of square meterage, who will create and employ high value jobs.
For example, when we look at family offices, then the ideal target would be single family offices, because we really believe the ecosystem here is perfect for the family members but also their principals to live and work in.
Other major sectors of interest include international trading, healthcare, shipping and yachting. As mentioned, we work hand in hand with the Cluster Yachting and the Monaco Yacht Show on several events each year, including the Dubai Boat Show and the Singapore Yacht Show. There are already around 300 companies and 1,500 jobs related to yachting in Monaco, but we feel there is more to be done. For example, we would like to have more captains and owners consider Monaco as a viable destination.
And finally, digital innovation is a sector that we are focused on, driven by the Monaco government’s digital transition, most notably the unique Extended Monaco program pushed by the Delegate for Digital Affairs, Frédéric Genta. There is also the very successful centre of excellence MonacoTech. At the moment, ICT represents around 5% of GDP, but we really feel that this sector has a lot of scope and margins for progression.
What do you see as the biggest trend in the business world?
Innovation and notably digitalisation, and Monaco is in fact playing rapid catch-up right now. There was no MonacoTech two years ago. But the great thing about Monaco is that the intermediaries are scarce so things can go fast; there are very sound finances with surplus budgets for the 9th year in a row and reserve funds equivalent to four years’ state expenditure, so things can also move swiftly on that front. In two or three years’ time, we will not only catch up, but more importantly we will go beyond.
You just have to look at the different steps that have already been implemented since the Extended Monaco / Smart Principality program was launched just over a year ago. We have a new one-hour coding class for all schools wwhich is a unique initiative because it will create some great talents locally. We are one of the very few countries in the world to harness 5G, and the e-government initiatives will definitely facilitate the administrative process online next year. We have also launched this year, in the field of sustainable mobility, a successful MonaBike network as well as electric taxis and buses and we even held a test drive for autonomous vehicles as well as creating connected bus shelters. We are also studying, with the help and experience of Estonia, the development of an e-identity for residents and nationals. These are just some of the initiatives currently being undertaken by Mr. Genta and his dynamic team. He has the experience, connections and ideas and we will see a lot of movement over the next few years.
So, in other words, it’s a very exciting time to be setting up business in Monaco?
We have very sound metrics, and our message is always the same – Monaco has unique stability thanks to seven centuries of the same ruling family. Our political system is very stable – there are very few social movements, workers’ strikes and elections issues.
You can also plan ahead thanks to the unique economic stability and growth as well as diversity of the economy not just in terms of GDP but also in the number of companies and jobs in different sectors created year on year. Everything is secure and safe in the ever more challenging world we live in. It is not just an economic hub but also a safe destination.
Real estate may be expensive, but you can always look at renting out space in a business centre where prices are more reasonable. We have around 14 business centres which can be ideal for small and medium sized companies. Innovative start-ups can apply to MonacoTech. So, it is possible to come and test the market at a reasonable cost and see how it goes.
That’s why our main partner the Welcome Office is also present, to advise and help find the right contacts, if you have the right project. Understandably, there are some sectors which are not suitable, for example, certain liberal professions like real estate as the market is completely saturated and over-represented. However, that way, the economy and ecosystem are able to keep giving value. And it’s working. The latest figures show GDP in 2018 at over 6%, with an average of 5% over the last five years. We have over 55,000 jobs in the private sector and a six-billion-euro economy. Yes, it is a great time to be setting up business in Monaco. Finally, our services at the MEB are free and confidential so why not give us a buzz!
Read also:
Interview: Justin Highman on the success of the China expo
MEB heads to Seoul for business opportunities
Monaco Economic Board takes on Russia’s second city
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