Madrid is Spain’s
administrative, political and communications hub as well as being
the leading financial centre and the country’s most important
economic region. Over half of Spain’s companies have headquarters
in Madrid, along with insurance companies, foreign
banks and prestigious business consultants and auditing firms. The
national stock exchange, Bolsa, is also based here.
However, rival Barcelona is rapidly overtaking
Madrid as a popular location for international
companies.
The insurance, financial and real estate sectors in Madrid are the
most significant contributors to the city’s economy, representing
17 per cent of the Spanish total. These activities are supplemented
by other successful service industries, including transport and
communications, media and publishing, leisure and tourism. Madrid
currently receives around five million visitors a year. As well
as making a vital economic contribution, these sectors are the main
sources of employment within the city, with around 150,000 people
working in the transport and communications sector alone.
Foreign companies with offices in Madrid include IBM,
Proctor and Gamble, Peugeot,
Shell and Siemens.
Major exhibitions and trade fairs take place at Institución
Ferial de Madrid (IFEMA) in the grounds of the Parque Ferial
Juan Carlos I, Campo de las Naciones (telephone number: (91 722
5000), and the Palacio de Congresos de
Madrid, Paseo de la Castellana 99 (telephone number: (91)
337 8100). The Comunidad de Madrid (telephone number:
(902) 100 007 ) has up-to-date information about trade fairs and
conventions.
The stock exchange is situated near the Plaza de Cibeles,
however, most modern businesses and an increasing number of banking
headquarters are situated in the north of the city, along Paseo
de la Castellana and is sometimes referred to as
Urbanización Azca.
Madrid has launched its bid to host the 2012 Olympic Games.
To enhance the city’s prospects, the developers intend to
transform an area to the north of the city which has already becoming
known as La Nueva Castellana, into an ultra-modern
sports and recreation zone. At its heart will be the Palacio
Olímpico, a 20,000-seater stadium next to
the Real Madrid training ground has four skyscrapers,
each rising to a height of 191m (627ft). The president of Real
Madrid, Florentino Pérez, is a
major investor in the scheme, estimated to cost upwards of €275
million.
The unemployment rate in Madrid stands at 8.14 per cent (January
2003) against the national rate of 8.4 per cent. The Madrid economy
continues to show strong signs of growth. The growth rate for industrial
production, for example, stood at 4.1 per cent in December 2002,
although some indicators point to a slowing down in demand in the
near future. Construction remains the most vital sector. The terrorist
attacks on New York and Washington in September 2001 instantly impacted
upon the tourist sector, with more than 7800 hotel reservations
cancelled in the first nine days following the disaster. The luxury
end of the market was worst affected. While the cost of hotel accommodation
generally has continued to rise, visitors still may be able to negotiate
bargain rates.
Business Etiquette
Standard business hours
Monday to Friday 0900 hrs –1400 hrs and
1600 hrs –1900 hrs, although 0800 hrs –1500
hrs is quite common during summer.
Larger companies and multinationals, however, are increasingly working
through the day, in line with the rest of Europe, although smaller
and local businesses still take a siesta. Punctuality
is not the norm. Traffic jams are commonly used and readily accepted
as an excuse for arriving 15 minutes late.
Breakfast
meetings are popular, perhaps because these are usually
accompanied by delicious cakes and very strong coffee. Lunch
and dinner appointments are also common.
Business cards are vital at initial meetings
and smart dress, including a suit (and tie for men), is advisable.
Small talk is a vital accompaniment to any meeting, as personal
relationships must be developed before business can be done. Children,
grandchildren, the flight to Madrid and the weather usually occupy
the conversation before business rears its ugly head. While Madrileños
work extremely hard, nothing is of more importance than the family
and it is entirely acceptable for an important telephone conversation
to be postponed if a family member rings. |
