Osaka is the second-largest city in Japan after Tokyo, which was, for a long time – until this year, the most populous city in the world – having lost the title this year to Jakarta, Indonesia.
The “Vision of Global Financial City Osaka” is an initiative to build a city that attracts overseas investment, financial institutions and global talent, thereby supporting the growth of the regional economy.
In March 2022, Osaka Prefecture formulated a strategy with a consortium of 33 companies and organizations – including government bodies, economic groups, and universities – launching the initiative through close collaboration among industry, government, and academia.
The initiative promotes the expansion into Osaka of foreign financial businesses including asset management and fintech firms. The defining feature of the vision is its aim to drive industrial growth and address social issues through the power of finance, rather than simply seeking to establish a financial hub.
Building the dream
Osaka is the second largest economic center after Tokyo and boasts world-class transportation infrastructure with a well-balanced mix of industries.
Known as an attractive city that hosted the Osaka-Kansai Expo in 2025 and with major projects such as the IR development under way, Osaka serves as a practical and highly competitive base for foreign companies expanding into Japan and other Asian markets.
While being one of Japan’s major metropolitan areas, Osaka remains comparatively reasonable – especially when measured against Tokyo and other major cities in Asia – in terms of office rent, labor costs and living expenses. The Economist ranked Osaka 7th in the world and 1st in Asia in its “2025 Global Liveability Index”.
Osaka also has long flourished as a commercial city and cultivated a culture that embraces innovation and creation of new value. Today, it boasts a highly advanced and diverse industrial cluster in DeepTech fields such as life sciences and carbon neutrality.
Making the most of these strengths and responding to the evolving global financial landscape, Osaka aims to realize its own distinctive model of a global financial city with unique functionality.
This includes enhancement of financial functions – often referred to as the “lifeblood of the economy” – and promotion of the development of a business environment where companies of all sizes, from startups to global corporations, can connect with investors and take on new challenges.
Osaka’s specific initiatives
In the Global Financial City Osaka strategy formulated in 2022, the long‑term goal is set for 2050. The four years leading up to the Osaka-Kansai Expo in 2025 are positioned as the foundation‑building period (Phase 1). During this phase, Osaka set targets such as attracting 30 foreign financial companies and creating 300 startups.
To achieve these targets and ensure that foreign financial firms can start their operations with confidence, Osaka has introduced a wide range of support measures.
These include a one-stop support center which offers English-language consultation services for specialized inquiries such as financial licenses as well as business and daily matters. The prefecture has also launched English support for administrative procedures, including company registration and various insurance processes.
In addition, Osaka provides subsidies of up to 10 million yen for establishing a business base in Osaka and has introduced Japan’s first local tax incentive for foreign financial companies, under which corporate tax, inhabitant tax and corporate enterprise tax can be reduced to zero for up to 10 years.
Osaka also places strong emphasis on business matching support, leveraging its extensive network, to meet specific needs.
During the Osaka-Kansai Expo, Osaka Prefecture hosted 115 visits from overseas companies, welcoming approximately 2,000 visitors.
Furthermore, around 8,000 overseas firms participated in business meetings, seminars, and related events. The Expo has served as a catalyst for accelerating business exchanges with international companies.
Thanks to these initiatives, the strategic targets of Phase 1 have been achieved: by the end of FY2025, 31 foreign financial companies had established their base in Osaka and 653 startups had been created.
In March 2025, new goals were set for Phase 2, covering FY2026 to FY2030. These targets include attracting 50 foreign financial companies, creating 1,200 startups and raising an amount of 160 billion yen.
Future strategic directions
Osaka Prefecture will work toward achieving the goals of the Global Financial City Osaka Strategy (Phase 2).
Leveraging the advanced technologies showcased at the Expo and the global connections formed there, the prefecture will focus on strengthening strategic promotion to overseas investors and encouraging investment and collaboration with companies based in Osaka.
Aiming to become a front-running financial hub, Osaka promotes financial innovation by providing subsidies and other assistance for the demonstration of pioneering financial services, in order to foster the formation of innovative financial products/markets and financial innovation.
Furthermore, Osaka will advance initiatives to enhance financial literacy among residents and cultivate highly skilled financial professionals through collaboration among financial institutions, schools, and government agencies.
The prefecture will also improve the business and living environment for overseas investors by enhancing the educational environment, including efforts to attract international schools.
Striving to be chosen
Realizing the vision of a Global Financial City is a vital challenge for Osaka as it strives to become a city chosen by the world. To embed technological innovation into society, the power of finance is essential.
Under strong collaboration among industry, government, and academia, Osaka Prefecture will continue to build the foundation for growth that extends beyond the Expo. Today, Osaka is taking a significant step forward as a new hub contributing to solutions for global challenges.
