I am enormously proud to bring you the 2025 iteration of the Open for Business City Ratings Report, a global benchmark of 149 cities.

Back in 2017 when we published the first edition, we could not have imagined the global events that would shift our lives in the following years. Despite these disruptions, cities have retained their status as centres of economic growth and inclusion, demonstrating both their resilience and their importance.

In an era of global economic uncertainty and global volatility, AAA-rated cities like Copenhagen, Stockholm, and Zurich demonstrate remarkable stability, maintaining their top-tier ratings despite worldwide market volatility, geopolitical shocks, and supply-chain disruptions. These cities combine progressive social policies with robust economic frameworks, creating resilient urban environments that continue to attract investment and talent even during turbulent times. What’s particularly noteworthy is that these cities achieve their stability through openness and adaptability rather than conservative policies, suggesting that progressive urban approaches and inclusive policies serve as more effective stabilizing forces than traditional economic protections.

The economic success of LGBTQ+ inclusive cities sends a powerful message: respect for diverse communities often indicates a broader commitment to human rights and democratic principles. As some nations drift toward authoritarian policies and anti-LGBTQ+ legislation, these progressive urban centres serve as crucial safeguards for both queer rights and democratic values. Their prosperity challenges the notion that social conservatism is necessary for economic success.

The high scores of diverse, inclusive cities in both economic and social metrics suggest they’re becoming important counterweights to national political polarization. Their success in combining business environment scores with strong social attitudes metrics offers a model for transcending traditional political divisions.

Dominic Arnall

Chief Executive Officer • Open for Business

The twenty first century is when everything changes.

The fourth industrial revolution—the combination of robotics, digitisation, artificial intelligence, and social media—is a truly revolutionary event. How and where we work and consume, and the infrastructure we need, are changing.

In any period of technological upheaval, it is tempting to focus on the technology itself. This is the nice, shiny new toy that tends to captivate the imagination. But the reality is that technology considered in isolation matters little. It is how the technology is used that matters. The steam engine was, after all, invented in the first century C.E., and initially nothing changed. It was 1,700 years until human beings started to use steam engines in an economically productive way.

Economic success depends on the people that use the technology. The mantra for economic success in any company, city, or country is “right person, right job, right time.” Prejudiced economies that reject 10% or more of their population because they are LGBTQ+ are guaranteed to get this wrong. Including the talent that this population represents by creating an inclusive culture will inevitably increase entrepreneurship and innovation by broadening the talent pool.

The importance of inclusion goes beyond the number of works. Quality should also improve. Anyone who has crouched in the closet at work knows how exhausting it can be to hide who you really are. It is difficult to perform at your best in the workplace if you are spending energy performing the role of “straight person.” There is less incentive to develop your skills if you believe your sexuality will prevent your skills being recognised. The more inclusive the culture of a city at large, the more likely it is that people will achieve their full potential.

The strong link between economic competitiveness and inclusion risks creating more divided societies in the coming years, as in periods of structural change people tend to look for a scapegoat to blame for their feelings of economic insecurity. Being able to blame a single group offers a pleasing simplicity in a frighteningly complex world. Throughout history, foreigners have been consistent, convenient scapegoats, but a convenient target has been any group in society that has made progress toward equality. Changing status makes groups a target when people are fearful of change. After the queer community’s limited progress toward equality in recent years, they are an obvious target for scapegoating.

This means that inclusive cities can develop a virtuous spiral effect, by attracting talent (including LGBTQ+ talent) and making the most of it. That increases the economic benefits of technology and enhances competitiveness. The risk is that the gap between the economic performance of inclusive cities increases relative to other regions. The relative economic decline of areas that are less inclusive may, perversely, make inclusion more difficult to achieve in those areas. As inclusive cities outperform economically, less inclusive areas may become more resentful and be further seduced by the simplicity of scapegoat economics.

Paul Donovan

Chief Economist • UBS Global Wealth Management