North Holland - Overview:
The Province of North Holland is characterised by a sizeable engineering industry and placed at centre of the North Sea oil and gas industry, is a base for many technology companies. The population stands at just under 2.5 million with a labour force of over 1.1 million. The regions main cities include Alkmaar, Den Helder, Haarlem, Hilversum and the capitol, Amsterdam.

The economy of the northern part of the region, centred around Den Helder is predominantly dependant on the Oil and Gas industry. Its favourable geographic location placing it in close proximity to most of the oil and gas fields in the North Sea has made it a centre of activities in this sector since 1968.

Toward the south of the region, Amsterdam is the main centre of business. Whilst many technology companies prosper in Amsterdam, the economic make up is more akin to that of other major European cities with a greater emphasis on the service sector. The commercial, financial and business services sectors are all well represented and a number of companies operate regional headquarters in the city. However, its strategic location within European markets also means that forwarding, handling and distribution activities make a significant contribution to the overall economic picture.

According to the European Cities Monitor (2002), by Cushman & Wakefield Healey Baker, Amsterdam ranks fifth in the list of most favourable cities in Europe in which to locate an international business. This follows London, Paris, Frankfurt and Brussels and is based on a survey of over 500 senior executives with European companies. In the survey, Amsterdam was noted for its favourable tax policies and financial incentives, stable political climate, quality of telecommunications, market accessibility and the multilingual abilities of its workforce.

Economy:
According to the Netherlands Economic Institute, with an expected average economic growth of at least 2.8 per cent per annum until 2003, Amsterdam's economy is one of the two fastest growing in the country.

Amsterdam is the economic engine of the region and has become a major European financial centre known for its efficiency and low costs in trade finance. Its stock exchange ranks fifth in Europe and eighth world-wide. Once merged with the Paris Bourse and Brussels Exchanges in September 2000, the emerging Euronext Exchange became the first fully integrated, cross-border, European equities, bonds, derivatives and commodities market. The sector as a whole employs in the region of 45,000 people and over 70 foreign banks and financial institutions have offices in the city. These include Bank of America, Bank of Taiwan, Bank of Tokyo-Mitsubishi, Banque Nationale de Paris, Canada Trust Bank, Chang Hwa Commercial Bank, Chase Manhattan Bank, Citibank, Crédit Lyonnais Bank Nederland, Deutsche Bank de Bary, J.P. Morgan Nederland BV, Korea Exchange Bank, Lloyds Bank PLC, The Int. Commercial Bank of China, United Garanti Bank International, Mizuho Bank Nederland, Maple Partners and Lehman Brothers.

Whilst foreign banks are a significant presence in the capital, several domestic banks are also leading international players. These include ABN AMRO and ING. These and other institutions can rely on a well-educated local workforce. The Amsterdam Institute of Finance (AIF), which offers top-level training to finance professionals, enhances the availability of specialised business skills.

Many major oil and gas operators including Clyde Petroleum Netherlands BV, Total Elf Fina E & P Nederland BV, Gaz de France populate the industry in the north of the region. In addition, there are over 140 supply and service companies attracted by short sailing and flying times to the North Sea platforms and the substantial local infrastructure which combines a modern sea port and offshore airport. The presence of a number of internationally recognised maritime training institutes, research institutes and capable government agencies help to create a robust business climate for maritime and offshore activities making Den Helder a comprehensive offshore and logistics service centre.

Much of Amsterdam's success has been attributed to it strategic location in European markets. Connected to a network of road and rail transport running throughout the continent and linked to European inland waterways, Amsterdam has carved out a reputation for the mass handling and distribution of goods. Companies located in Amsterdam are able to co-ordinate the movement of goods via a range of locally accessed transport options. This has attracted a significant amount of foreign investment. According to the Amsterdam Promotion Foundation, the Japanese and Americans particularly favour the Netherlands with 57 per cent of American and 52 per cent of Japanese distribution centres in Europe located here. In 1998 twice as much of the land in the business parks adjoining Amsterdam Airport Schiphol as forecast, was allocated to foreign companies. These include Boeing, Ricoh Europe and Mitsubishi Electric.

According to a study commissioned by the Dutch Ministry of Economic Affairs and conducted by Ernst and Young in 2001, the Amsterdam region is placed in the top three preferred European locations for ICT companies preceded by Dublin and Stockholm. The multimedia sector in Amsterdam consists of some 1,500 companies, which between them employ over 10,000 people. According to the Amsterdam Promotion Foundation, this includes over 800 new businesses in the last three years. The sector thrives in a creative atmosphere supported by state-of-the-art IT infrastructure. It is populated by a large number of international advertising companies, publishers and TV networks and much of the activity is content-related. Companies choosing Amsterdam as a centre of operations include, Adobe Systems, Altavista, BEA Systems, BMC Software, Cisco Systems, Dell, Doubleclick, Euronet, Hewlett Packard, Imation, Intel, Level(3) Communications and Yahoo.

The region maintains a diverse and active manufacturing base with around 15 per cent of the workforce employed in the industrial sector. Food processing, chemicals and the automotive industries dominate with a burgeoning medical technology sector aided by government incentives. Manufacturing thrives on the logistical advantages of the region and productivity is enhanced by extremely competitive labour costs, favourable tax policies and low telecommunications and energy costs.

Infrastructure:
The Amsterdam region has long made a business out of its location and the infrastructure built around that business is as one might expect. Schiphol International Airport, Europe's fourth-largest air-cargo hub, is at the centre of the network and offers regular flights to all major European destinations. According to the International Air Cargo Association, the airport experienced an unexpected surge in cargo handling in 2002. Having forecast 540,000 metric tons, cargo volume actually reaching 607,280 metric tons in the first half of the year compared to 529,149 metric tons in the previous year.

Based on such criteria as accessibility by road and public transport, baggage handling, service and costs, The ADAC, Germany's largest motoring organisation, declared Amsterdam Airport Schiphol the 'Best in Europe' in a survey of 20 major international airports.

Thanks to the introduction of innovative new container terminals and a variety of value-adding activities, economic activity at the Port of Amsterdam is also on the increase. With extensive access to inland waterways and situated within 20 minutes of Amsterdam Schiphol Airport the port is one of Europe's seven major maritime hubs. The port is capable of handling all types of commodities and includes comprehensive solutions for every element of goods handling. With specialised port facilities at Beverwijk, Zaanstad and Velsen, the Port of Amsterdam district stretches along the banks of the North Sea Canal from Amsterdam to the IJmuiden locks at the mouth with the North Sea.

The central rail station in Amsterdam is Leidseplein, one of the largest railway terminals in Europe. Efficient rail services provide connections to all major Dutch and local European cities. Journey time to Brussels is approximately 3 hours or 2 hours 30 minutes by Thalys high-speed service, whereupon connections to the Eurostar network can be made. Brussels to London is also approximately 3 hours.

The region is also well served in terms of its electronic business infrastructure. Amsterdam is home to the largest Internet hub on the continent, The Amsterdam Internet Exchange (AMS-IX). It is also one of the 10 most important Internet hubs world-wide. As such it is at the heart of an advanced telecommunications infrastructure which is populated by major companies such as KPM, BT, WorldCom and Level(3) Communications.

Business Costs:
According to the Dutch Association of Real Estate Brokers in a report published in 2001, as demand for office space in Amsterdam, and throughout the Netherlands had eased the cost had stabilised. This had had been noticeably less so in Amsterdam thanks to its strong economic position. More recently, according to international real estate firm CB Richard Ellis in their Global Market Rents report for July 2002, the general downturn in the property market saw a 6 per cent decline in prime rents in Amsterdam putting total occupancy costs at around 330 Euros per square meter.