Global Drivers


The Need for Smart Resilient Cities

Our vision of smart cities developments is driven by a number of accepted global megatrends. A wide range of issues is affecting both developed and developing countries and each of these challenges will have a significant bearing on the demand for, and the shape of, many smart cities solutions.

The World Economic Forum estimates that the current gap between annual global demand for infrastructure of US$3.7 trillion and actual investment is US$1 trillion per annum. This figure equates to over 3.5 per cent. of global GDP. Global demand for infrastructure is driven by the need to invest in infrastructure in order to boost economic growth, replace the failing infrastructure built since, or even before, 1945 and balance the challenges of globalization and environmental concerns. Many countries, including emerging and advanced economies, have paid insufficient attention to maintaining and expanding their infrastructure asset base, creating economic inefficiencies and allowing critical systems to fail or become inefficient.

The scale of the opportunities in infrastructure investment over the coming years can be demonstrated by the following:
- One third of all infrastructure assets under management in Europe are expected to be disposed of in the next 5 years, with sales to infrastructure funds the most likely exit route;
- Canada has designated CAD$120 billion for investment in infrastructure over the period 2016 to 2026; and
- The United States is expected to embrace private finance on a significant scale by adopting PPP-based payment structures to finance the construction of replacement and new infrastructure. The Infrastructure Plan published by the White House has identified an immediate need for US$1 trillion of investment, with the American Society of Civil Engineers estimating a requirement for spend on infrastructure required by 2025 of US $4.6 trillion.

Outlook by Geography

The geographical sectors considered as the most relevant in the context of the Company’s investment policy are: the United States, Europe, and China's "Belt & Road" focus

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