Club Eco Monaco: Win-Win Investments?

The Principality makes numerous infrastructure investments abroad, either directly or through companies in which it holds shares.

Often perceived as a territory with a primarily domestic economy, the Principality of Monaco is actually deploying an investment strategy that extends far beyond its borders.  This was highlighted at the Club Eco Monaco conference organised by the Monaco Economic Board (MEB) and the Nice-Matin Group, which brought together public stakeholders and key business leaders from MonacoTech.  "The state has several tools at its disposal to support its strategy, from the budget to the Constitutional Reserve Fund," noted Laetitia Faix, Director of the Budget and Treasury Department, emphasising the importance of a fund estimated at nearly €8 billion.  “It's rather like betting on the future, as with the investment in the French startup, Flying Whales, which has developed a low-carbon transport solution using a 60-tonne cargo blimp,” notes Guillaume Rose, MEB CEO.
In the transport sector, Monaco’s stake in Aéroports de la Côte d’Azur illustrates a strategy of influence as much as an economic investment.  According to Franck Goldnadel, Chairman of the Executive Board of Aéroports de la Côte d’Azur, the Principality, a “demanding” shareholder, contributes to the airport’s strategic direction, whilst directly impacting its connectivity and therefore its attractiveness - a win-win situation, since the activity generated represents nearly €400 million of GDP for Monaco.  The same logic applies to rail and port infrastructure.  Faced with its capacity constraints, Monaco invested €180 million alongside the PACA region to improve rail service for employees, notably through the acquisition of six new TER regional trains; and in 2016, with the Cala di Forte Marina in Ventimiglia, for an 80-year concession to increase its berthing capacity, particularly for larger vessels.  “If you take any four of the world's ultra-wealthy individuals, at least one will own a yacht,” notes Aleco Keusseoglou, President and Deputy Chairman of the Monaco Port Authority.
Energy is another major pillar.  Through the joint venture, Monaco Renewable Energies, more than €100 million has already been invested in solar and wind farms in France.  The objective is to eventually produce the equivalent of the Principality’s electricity consumption, whilst ensuring security of supply in the face of energy crises.

In the strategic field of telecommunications, Monaco Telecom now generates the majority of its revenue internationally, particularly in the Mediterranean region.

By Milena Radoman - Monaco Economie