Economy
Starting in the early 1900's Madrid began changing from a mainly administrative centre into a more modern industrial city. During the rule of the Dictator Francisco Franco, Madrid along with the rest of Spain entered a period of economic decline brought about due to isolation, but with the death of Franco in November 1975 and the re-establishment of the Monarchy, Madrid began to reassert itself on the world stage.

Among the industries found in Madrid are vehicle and aviation engineering, food processing, printing, pharmaceuticals and chemicals. Increasingly, the service and financial sectors are becoming the dominant areas of Madrid's economy. As a city renowned for its culture, tourism is also an important source of income for the region.

Many multi-national companies have chosen the city as a base for regional headquarters, operations and call centres. Siemens Nixdorf, IBM, Boeing (R&D), Schweppes and Time Warner are among many household names located in Madrid. According to PromoMadrid, a division of the Regional Ministry of Economy and Employment, Madrid is the second most important industrial region in Spain and the undisputed centre for high technology. Foreign Direct Investment in Madrid consistently exceeds 60% of the national total.

The Madrid Chamber of Commerce (Camara Madrid) has a number of initiatives aimed toward investment in the city, an example of which, is the SUMA Consulting Service, a free I.T consultancy aimed at advising small to medium sized companies with regards to their I.T infrastructure. Figures provided by PromoMadrid for 2003 show the GDP by sector for Madrid was, Services 76.2%, Industry 23.7% and Agriculture 0.2%. GDP growth was 3.4%.

Infrastructure
The transport system in Madrid is one the most comprehensive in Europe, which includes a Metro system, the third largest for kilometres of track after London and Moscow. An extension of the metro, due for completion in 2007, will add 47 kilometres plus 40 kilometres of light metro.

International connection to Madrid is through Barajas International airport, which according to AENA, the Spanish airport authority is "The most important airport in Spain and one of the five most important airports in Europe". Passenger figures for 2005 exceed 31 million and cargo exceeds 239 million kg. From the airport Madrid is connected to almost all major destinations in the world with the exception of Australia. Barajas is located thirteen kilometres to the northeast of Madrid and the city is accessed from Barajas by line 8 of the metro to Nuevos Ministerios in the centre of the city where AENA operate check in facilities. The airport does not have a direct connection with the main railway network, but it is accessible by a short journey on the metro, from which the Spanish high-velocity trains can be taken. Buses are available from all three terminals. Taxis should be taken from the designated taxi ranks at the terminals and not from drivers, who are known to approach passengers in the terminals, to avoid being over charged.

By train Madrid links to the rest of Spain, the main station, Atocha serves the East, West and South of the country, whilst Chamartin serves the North. The state company RENFE, which also runs high-speed trains, runs the railways in Spain. In 2003 REDIMadrid was launched with the aim of creating an advanced communications infrastructure, which is now fully operational, giving Madrid a world-class communications network.

Workforce
Madrid has around 16 Universities and a number of other Colleges covering a vast number of subjects, which provides the cities employers with highly educated and motivated workers. According to a European Chambers of Commerce Survey in 2004 the Madrid region has been classified as the European region with the best job creation and economic growth prospects.

The current workforce stands at around 2.6 million out of a population of 5.8 million, of which 30% are educated to degree level. Unemployment is the lowest in Spain, having decreased to 6.2% by September 2004. Also the survey states, "Madrid offers a highly qualified, committed and adaptable workforce at significantly lower costs than the rest of western and northern Europe". The workforce is also very young, nearly 70% of the working population is under 45 years old.

Standard of Living
The Mercer human resources cost of living survey (Worldwide 2005) ranks Madrid in 46th place with a score of 86, out of 144 cities. New York is the median for the index, in 13th place (100), Tokyo is in 1st place (134.6). Of the 44 European cities, including ex-Soviet Union, in the survey Madrid is 31st, putting the city in the position of being one of the most developed in Europe with a low cost of living.

For many years Madrid has been famous as a city of art and culture with many theatres and events, the world-renowned Teatro Real (Royal Opera House) stage's performances by many of the world's top class opera and ballet companies.

The parks and gardens around Madrid are some of the finest in Europe providing relaxing havens for those wishing for a little peace and quiet and the museums cover a wide range from art to technology. Entertainment in Madrid is also a major part of the cities attraction to tourists with top quality restaurants, cafes, bars and nightclubs.

One caveat with Madrid however is the air quality, the EPHA Environment Network based in Brussels, reports that Madrid has been steadily exceeding the limit values for nitrogen dioxide and the data up to May 31st 2005, shows the situation worsened instead of improving.

Business Costs
Office occupancy costs in Madrid are favourable in comparison to other European cities at around 45 euros per sq ft, per annum.