Quito has six factors that make it one of the most attractive Ecuadorian cities for foreign direct investment (FDI).
Keto average draws 25% of foreign direct investment in Ecuador, or the equivalent of US$200 million annually.
This places Quito as one of the most resource-intensive cities out there, above Guayaquil.
“We may not have done everything we had to do, but we delivered.”
This is stated in the 2023 Investment Guide, prepared by the Quito Chamber of Commerce (CCQ) and the Metropolitan Municipality’s Development Department.
For Francisco Gonzalez, Quito Opportunity Center project coordinator, the capital city, like the rest of the country, has the potential to Attract more resources from abroad.
current levels of direct foreign investment up to 10 times Palace in front of others Countries with similar economic activities, Gonzalez explains.
Colombia had $11,320 million in 2022, while the average in Ecuador is $1,000 million.
Advantages of keto
according to Investment Guide 2023Quito has the potential to attract more capital due to six factors.
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A cargo plane at Mariscal Sucre International Airport in Quito, in February 2022. Quito Airport / Facebook
Being the capital of Ecuador, Quito has an international airport which is essential for business growth through foreign trade.
In 2022, more than 239,000 tons of goods were exported through Mariscal Sucre International Airport in Quito and more than 47,000 tons of products were imported.
Imports allow an extension access to the input For the productive sector, while exports lead to products and services reaching new markets.
In the ten years of operation of the air terminal, about 2.3 million metric tons of cargo have been packed. More than 97.5% corresponds to International shippingexplains Corporación Quiport, which operates the airport.
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The city also has a road system that allows goods to be transported to the rest of the country, which translates to a greater dynamism of its economy.
In addition, the Quito metro, which will be put into operation, is expected to start operating this year 22.6 kilometers.
“The project will be the backbone of the city’s future integrated transportation system, which will shorten distances,” which means saving time and money, he explains world bank.
The city is also interesting for business because it is conference centers And large hotels for the development of national and international meetings, conferences and conferences.
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An aerial view of the north-central city of Quito, on June 16, 2021. EFE
Another advantage of Quito is that businesses have more, being the capital city Access to public institutions To obtain permits and comply with procedures.
There is greater access to files financial institutions and offices of international organizations that support small business, such as Inter-American Development Bank (IDB) and the CAF Latin American Development Bank.
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In Quito a large part of Universities and institutes in the country.
There are 71 registered and accredited higher education institutions in Ecuador, and 32% of them are in the capital.
The presence of universities and institutes means greater access to education, which translates to Professionals are ready.
That’s why it is 37% of the economically active population is in Quito He has a higher education. The figure is higher than the national average of 20%.
also , 6% of city EAPs hold a graduate degree. This is four percentage points higher than the national average of 2%.
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Hands of a worker at a fish processing company in Quito, March 2021. Ministry of Production / Twitter
There are approximately 850,000 establishments in the country, according to the National Institute of Statistics and Census (INEC) Business and Commercial Establishments Directory.
About 186,000 of them or so 22% in keto.
If broken down by size, there is 16,572 large and medium-sized companies In Ecuador, which is equivalent to 2% of the total business fabric.
DC fact is different, 4,424 or 27% of their companies are large or medium sizedwhich means that, at least, it records sales of US$2 million annually and has minimum 100 workers.
the trade-related sectors, Other service activities, scientific and technical professional activities, manufacturing, transportation, and warehousing account for about 73% of the total number of businesses residing in Quito.
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The international airport and geographical location make Quito one of the main tourist destinations in Ecuador, which means income from accommodation, entertainment, and commercial activities, among other things.
the total, 15 passenger airlines call Quito directly with 14
international destinations and eight destinations within Ecuador, making the capital the most connected city in the country by air.The city has one of the main tourist attractions in the country: Half the world.
Tourists also want to come to Quito to appreciate its historic center, which has earned the city recognition as humanity’s foremost cultural heritage.
In 2022, 531,097 domestic and foreign tourists visited the capital, according to Quito Turismo.
Most foreign nationals come to Quito from the United States, Colombia, Spain, Peru and Canada.
Paperwork
The city also has some outstanding issues that make Foreign Direct Investment (FDI) Don’t be too old
One of them is Excessive routine In some operations, says Quito Opportunity Center project coordinator.
The World Bank agrees, stating that a person needs to do this 11 procedures which takes 48.5 days to Open a company in Quito.
Among them is one urban license for carrying out economic activities (LUAE).
while in Santiago de Chile takes four days to establish a company.
Gonzalez adds that investment access to Quito is also threatened by uncertainty.
Country risk continued to rise and closed at 1,971 points on March 30, after the Constitutional Court gave way to Political trial of President Lasso.
Gonzalez concludes that the return for business is lower because of country risk, which has risen and makes the cost of credit obtained abroad more expensive.
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