The pandemic drove Miami into a rising technology and finance hub, and this position continues to increase. The ‘Magic City’ has finally made its debut in the 34th edition of the Global Financial Centres Index, and Miami enthusiasts are delighted about the development. Miami ranked 24th of the world’s top financial centers and 7th nationally.
The Global Financial Centres Index is published every March and September. It’s compiled by the London-based Z/Yen and the China Development Institute. Policymakers and investors take note of this report to make informed decisions. The report considers various factors when developing its rankings, including human capital, infrastructure, regulations, and criteria from financial institutions. Some institutions considered are the World Bank, the Economist Intelligence Unit, the United Nations, and the Organization for Economic Cooperation and Development (OECD).
Miami’s Mayor Daniella Levine Cava took to X (formerly Twitter) to celebrate the news. She stated, “Miami-Dade makes a historic debut at #24 on the Global Financial Centres Index (GFCI)—a benchmark that recognizes global financial hubs. This achievement marks the future competitiveness for 121 financial centers using data points from sources including @WorldBank and @UN.” Proud of her city, the mayor acknowledged the historical relevance of the achievement, noting the competitive edge Miami is continuously sharpening.
Mike Wardle, co-author of the report and CEO of Z/Yen, stated, “Miami has entered the index because its reputation as an international [center] has developed and grown.” According to Wardle, Miami’s debut follows the latest U.S. metro area to breach the index threshold, Minneapolis/St—Paul, in March 2023.
During the pandemic, Miami’s tech and finance sectors boomed. The alluring flexibility of remote work caught the attention of venture capitalists, private equity titans, and entrepreneurs from other hubs nearby. They came from New York and California to South Florida.
For example, Point 72 Asset Management, a hedge fund by Steven A. Cohen, opened an office in the area in March 2020. Other notable companies like Apollo Global Management and Blackstone have also moved into town. The CEO of Citadel, Ken Griffin, plans to move there after a 32-year stay in Chicago.
From investment firms like Atomic, Founders Fund, and Andreessen Horowitz to individuals, Miami experienced a spike in venture capital and investment deals, surpassing traditional tech hub trends. The sharp increase left Boston and the San Francisco Bay Area in its wake.
Miami’s tech sector is currently experiencing a challenging 2023, but it’s expected to rebound next year. In addition to the ranking, Miami first appeared in the report’s global assessment of financial and tech centers, ranking 39th. This sees it following New York, which ranked first on the list, London ranking second, then San Francisco, Shenzhen, Singapore, and LA rounding out the top six. As for the overall global rankings, New York came in first, London finished second, followed by Singapore, Hong Kong, San Francisco, and LA.