World City Guide

Business

Business Profile
In addition to being Spain’s administrative, political and communications hub, Madrid is also the leading financial centre and the country’s most important economic region. Over half of Spain’s companies have headquarters in Madrid, along with foreign banks, insurance companies and prestigious business consultants and auditing firms. The national stock exchange (Bolsa) is also based here. However, rival Barcelona is rapidly overtaking Madrid as the favoured location for international companies.

The financial, insurance and real estate sectors in Madrid are the most significant contributors to the city’s economy, representing 17% 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 seven million visitors a year. As well as making a vital economic contribution, these sectors are the main sources of employment in the city, with around 150,000 people working in the transport and communications sector alone.

Foreign companies with a presence in Madrid include IBM, Peugeot, Proctor and Gamble, Shell and Siemens. Major exhibitions and trade fairs take place at Institucin Ferial de Madrid (IFEMA) in the grounds of the Parque Ferial Juan Carlos I, Campo de las Naciones (tel: (902) 22 15 15; fax: (91) 722 580; e-mail infoifema@ifema.es; website: www.ifema.es), and the Palacio de Congresos de Madrid, Paseo de la Castellana 99 (tel: (91) 337 8100; fax: (91) 597 1094; website: www.pcm.tourspain.es). The Comunidad de Madrid (tel: (902) 100 007/012; website: www.comadrid.es) 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 located in the north of the city, along Paseo de la Castellana – sometimes referred to as Urbanizacin 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 (already becoming known as La Nueva Castellana) into an ultra-modern sports and recreation zone. At its heart will be the Palacio Olmpico, a 20,000-seater stadium next to the Real Madrid training ground, and four skyscrapers, each rising to a height of 191m (627ft). The president of Real Madrid, Florentino Prez, is a major investor in the scheme, estimated to cost upwards of 275 million.

Business growth rate was 3.5% in 2004. Although the March 2004 bomb attacks did initially affect business in Spain, specially in the tourism and transport industry, the city has since recovered, to the point where Madrid is experiencing a greater business growth rate since the attacks. Madrid has been pointed as an expanding city with many opportunities in the communications arena, as well as in the construction business. The fact that David Beckham was signed by Real Madrid and settle there with his family could also be a reason why Madrid has been put firmly in the ‘places to go’ list.

Business Etiquette
Standard business hours are Monday to Friday 0900–1400 and 1600–1900, although 0800–1500 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 the mid-afternoon break or 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 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 Madrileos 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.