World Country Guide

Business Profile

Economy
Service industries, especially property and financial services, account for the bulk of Monaco’s economy. Tourism is also a major source of revenue, contributing about 25 per cent of government revenue, as well as being the mainstay of local retail businesses. There is also a highly successful, custom-built business conference venue. The dearth of land precludes any agriculture, but there is some light industry, the main products of which are pharmaceuticals, plastics, electronics, paper and textiles.
Monaco attracts many extremely wealthy individuals as residents, by virtue of its pleasant climate, reputation and environment as well as the absence of income or inheritance tax and lack of financial reporting requirements. Migrant, non-resident labour supplies the menial workforce. Since the late 1990s, concerted international efforts to tackle the global problem of money laundering and tax evasion have been led by the Organisation of Economic Cooperation and Development (the group of 24 leading industrial countries) and its Financial Action Task Force. The FATF has set down a number of criteria covering disclosure which ‘offshore’ financial centres must meet. Most centres have cooperated with the new FATF regime. Monaco is one of seven which, by the deadline in April 2002, had failed to do so: future developments rely on the actions of Monaco’s ruling Grimaldi family (itself implicated in a major fraud inquiry) and the attitude of the French government. Almost all the principality’s external trade is conducted with France – and France, along with Italy, supplies the bulk of Monaco’s visitors (both as tourists and foreign labour).

Business
A suit should be worn and prior appointments are necessary. Business meetings are formal. It is considered impolite to begin a conversation in French and then revert to English. Office hours: Mon-Fri 0900-1200 and 1400-1700.

Commercial Information
The following organisation can offer advice: Conseil Economique et Social (consultative organisation dealing with all aspects of the national economy), 8 rue Louis Notari, MC 98000 (tel: 9330 2082; fax: 9350 0596).

Conferences/Conventions
Monaco is a year-round leisure and business destination and there are extensive conference facilities. The Forum Grimaldi Cultural and Exhibition Centre, one of Europe’s largest venues for conference events, provides three terraced auditoria, the largest with 1900 seats and two massive exhibitions halls. Large parts of the new complex are built under water. For further information, contact the Grimaldi Forum Monaco, BP 2000, 10 avenue de la Princesse Grace, MC 98001 (tel: 9999 2000; fax: 9999 2001; e-mail: contact@grimaldiforum.com; website: www.grimaldiforum.com). Other conference venues include the 1100-capacity Convention Centre and Auditorium (built on land reclaimed from the sea), including technical support and exhibition areas; the International Conference Centre (with a capacity for 450 persons); and the Meridien Beach Plaza Club, which can seat up to 1624 people. For further information, contact the Direction du Tourisme (see Contact Addresses section).