Ranking the global cities powering the next era of business growth

Globalization is far from dead, and cities are living proof. The average multinational company currently operates in more than 120 cities. That number will increase as technology, economic and demographic growth, and changing trade policies create new business opportunities.

Deciding where to invest has never been more critical. Companies must navigate complex factors — geopolitical tensions, supply chain resilience, rapid technological disruption, and rising climate risks — as they reshape their global footprints for growth. Getting these decisions right can lock in durable advantages in sourcing, market access, talent, and resilience. Getting them wrong puts growth and stability at risk. Policymakers face equally high stakes as they strive to position their cities competitively in this evolving global landscape.

To help leaders navigate these challenges, the Oliver Wyman Forum ranked 1,500 cities globally using over 50 key indicators that will drive future city growth, ranging from the presence of multinationals and the availability of venture capital funding to flight connectivity and work visa policies. These cities account for more than three-quarters of global GDP, worth some $88 trillion, and are home to 1.9 billion people who spend an estimated $56 trillion annually. They host 92% of the world’s listed companies and are the starting point for 86% of the world’s passenger flights.

Global CEOs and investors must rethink their geographic strategies to capitalize on this growth. Choosing where to open new offices, build factories, deploy sales teams, or find the next unicorn is an ongoing process. While geopolitical tensions and supply chain challenges increasingly influence these decisions, the fundamental opportunities remain. A company's geographic spread simultaneously enhances resilience across its facilities, workforce, and customer networks in a disrupted world.

City leaders in turn have a unique opportunity to attract new business investment, create greater employment opportunities, leverage emerging technologies, and build stronger climate resiliency. Past success no longer guarantees future wins. Leaders who act boldly can compete with the world’s existing champions, as evidenced by the rapid rise of Gulf cities from Dubai to Riyadh, China’s electric-vehicle capital Hefei, and America’s Battery Belt cities.

More than 480 of our cities are in Europe and the United States, where factors ranging from data center investment to industrial reshoring drive growth. But an even larger share are in  Asia, the Middle East, Africa, and Latin America, where average GDP growth rates are often several percentage points higher and 84% of the world’s urban population resides. While not all of these cities will thrive, many will outperform their countries at large.

Five critical themes driving city performance

Our indicators measure how well cities perform in areas such as commercial vibrancy, connectivity to regional and global markets, technological innovation, and climate resilience. By analyzing that data, we have identified five key themes that CEOs, investors, and city leaders should consider in planning their next steps.

Leading cities are commercial, connectivity, and investment hubs

During the 20th century, leading global cities were mainly in North America, Europe, and Japan. However, rapid growth in China, India, and emerging economies has created new urban powerhouses — from megacities like Shanghai and Seoul to fast-growing Gulf cities. CEOs must pinpoint which cities will sustain their competitive edge amid geopolitical and technological shifts, while city leaders should learn from these emerging successes.

Emerging markets are jockeying for a place in global supply chains

Tariffs and technology are reshaping global manufacturing, increasing supply chain diversification and reshoring. Emerging champions such as Ho Chi Minh City, Guadalajara, and Tangier are winning market share by providing low costs, nearshoring opportunities, and diversification, even as reshoring efforts, driven by measures to bolster economic sovereignty, boost new investments across cities such as Phoenix and Munich.

Affordability and business shifts help midsize cities generate outsize growth

The game today is not all about global megacities. Midsize cities in emerging and developed markets — from Austin and Hamburg to Patna — are growing rapidly by leveraging new industries, taking advantage of shifting supply chains, and offering more affordable housing than their bigger rivals. These cities are key drivers of future economic growth, innovation, and investment opportunities beyond traditional global hubs.

Innovation and tech hubs shape the knowledge economy

Accelerating technological innovation is driving today’s economy and reshaping opportunities. To compete effectively, cities must become innovation hubs to attract and nurture skilled talent, while also offering strong science, technology, engineering, and mathematics (STEM) education, vibrant tech ecosystems, and favorable policies. The global talent war already is fierce with favorable tax rates, visa rules, and indices of livability influencing flows of skilled workers.

Climate resilience is key to attract business and talent

Cities are on the front lines of climate change, and the gap between leaders and laggards will widen as the threat worsens. Those that invest in resilience, ranging from flood protection to renewable power — as Paris and Singapore have done — will be better able to attract business and talent. Those that struggle will face worsening dynamics, including rising insurance costs, shortages in resources such as water, and even potential population displacement.