JOHANNESBURG, April 18 (Xinhua) -- Middle East and Africa (MEA) region is the darling of about 500 multinational companies, according to global business research company Infomineo on Tuesday.
The research company's report is based on survey on multinational companies already present in the Middle East and Africa and those seeking to enter it. In 2016 there was a 17 percent increase in the number of Fortune 500 companies in MEA as compared to 2015.
According to the report, Last year, 196 Fortune 500 companies had established a dedicated regional headquarters in the MEA region. Casablanca (Morocco) and Nairobi (Kenya) are the leading destinations for Fortune 500 companies establishing international headquarters while Johannesburg being the leading destination for Africa.
Some organizations who want to service Eastern Africa prefer Nairobi. Dubai and Johannesburg are the most popular hubs overall which organizations consider to establish a regional headquarters.
Some cities which also excel in terms of attractiveness includes Cairo, Algiers (Algeria) and Cape Town. About 138 companies have established a dedicated entity in Dubai making it the most popular choice. Generally, there has been an increase in companies establishing to service MEA from outside the region.
The leading regional destinations on the Fortune 500 list include Dubai, Johannesburg, Casablanca, Nairobi, Lagos, and Cairo. Egypt had 250 percent increase of Fortune 500 investment since 2015 and is currently being affected by political instability.
Infomineo said technology companies prefer Casablanca or Lagos (Nigeria). About 12 Fortune 500 companies have already established their offices in Lagos with some using it as the headquarters to service West Africa.
Infomineo said that in choosing a city organizations consider the local market potential, maturity of the industry, existing competitors, political stability and the quality of the employment market.
The Fortune 500 consider these factors to mitigate the risks and ensure there is a stable and profitable investment, according to Infomineo.