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Alberta: A Rising Financial Centre

The industry (FSI) is one of the largest and most responsive sectors in . During much of the last decade energy investments drove the expansion of the sector and the provincial economy. Current ongoing construction projects in and out of the energy supply chain as well as growth in agriculture, forestry products and services continue to support wealth creation and provincial development. Between 2004 and 2014, Alberta’s financial services sector GDP rose 57.5%, outpacing financial services sector GDP growth in all other provinces. By comparison, GDP in ’s financial services sector rose 30.2% over the same period.

Financing the Energy Sector

Alberta’s financial services industry has largely been built around servicing the transaction and financing needs of the energy sector. The concentration of capital-intensive , high deal velocity, and large deal size makes Alberta an attractive market for financial services firms. Alberta offers:

 One of the three largest petroleum reserves in the world.  About 70% of Canada’s crude oil production and 80% of its natural gas.  The world’s largest recoverable oil sands deposits, with an estimated output of 1.7 million barrels per day in 2012 and expected to more than double to 3.7 million barrels per day by 2021.

Beyond its high levels of spending and record revenues, Alberta’s energy industry is also a trading hub (approximately 8% of all assets are traded, compared to 1% – 2% average in other jurisdictions). The high volume of deal-flow in recent years has turned into Canada’s capital of (M&A) and the investment banking community has gained valuable experience that can now be leveraged in other sectors and jurisdictions. There are close to four times as many M&A deals completed in Alberta than in any other Canadian province.

A Leading Destination for Capital Investment

Alberta is a leading destination for capital investment in Canada. With average annual capital investments of $90 billion in Alberta in 2009-2013 and a record high of over $113 billion expected in 2014 alone, the province’s financial sector appears poised for additional growth. Capital expenditures in the province were $111 billion in 2013, of which $1.1 billion were attributed to firms in the and sector. In 2013, per capita investment in Alberta was $27,617, more than twice the Canadian national average of $11,342.

Calgary – A Rising Global Financial Centre

Calgary is Western Canada’s hub and a rising global financial centre. With the highest concentration of corporate head offices per capita in the county, including the Canadian of all major global oil and gas companies, Calgary has developed a world-class investment banking and industry focused primarily on the oil and gas sector.

Calgary’s finance, insurance and real estate sector created $ 14.9 billion in GDP for 2012, a 14.1 per cent of the city’s total GDP.

Edmonton – A Leading Fund Management Centre

Edmonton is one of Canada’s leading centres in fund management and provincial banking. It is home to one of Canada’s largest pension fund managers (Alberta ), Western Canada’s two largest banking (ATB Financial and Canadian Western ) and Canada’s third largest union ().

Edmonton’s finance, insurance and real estate sector created $9.4 billion in GDP in 2012, a 17.4 per cent share of the city’s total GDP.

How we Can Help

The Alberta Government can provide your with contacts and information on potential partnerships and investment opportunities in the Financial Services sector. We can help you:

 Learn about challenges and opportunities in this sector;  Build alliances with local and international partners; and  Connect you with business development representatives

Contact

Armstrong, Roger Sector Lead, Financial Industry Industries Development Branch Alberta and Advanced Education [email protected] Tel: (780) 638-4670