Norway encourages foreign investment and the investment climate is very positive. After peaking in 2011 (19.9b USD), FDI slowed down in the context of the euro zone crisis. American and Dutch oil companies (Exxon-Mobil, Texaco, Royal Dutch Shell) have made significant investments in Norway. In general, the industries that attract the most FDI are oil, gas, manufacturing, retail, wholesale, and banking. Even though Norway has a narrow domestic market, the country possesses several assets such as its geographical location in a fertile region, its favored ties with the United States, a skilled and multilingual population, a modern economy, and rich energy resources.
|Index of Transaction Transparency*||7.0||6.0||7.0||5.0|
|Index of Manager’s Responsibility**||6.0||5.0||9.0||5.0|
|Index of Shareholders’ Power***||7.0||9.0||5.0|
|Index of Investor Protection****||6.7||6.1||8.3||5.0|
Source: Doing Business - Last Available Data.
Note: *The Greater the Index, the More Transparent the Conditions of Transactions. **The Greater the Index, the More the Manager is Personally Responsible. *** The Greater the Index, the Easier it Will Be For Shareholders to Take Legal Action. **** The Greater the Index, the Higher the Level of Investor Protection.
|Foreign Direct Investment||2011||2012||2013|
|FDI Inward Flow (million USD)||20,586||16,648||9,330|
|FDI Stock (million USD)||171,707||200,186||192,409|
|Performance Index*, Ranking on 181 Economies||36||-||-|
|Potential Index**, Ranking on 177 Economies||47||-||-|
|Number of Greenfield Investments***||31||32||37|
|FDI Inwards (in % of GFCF****)||21.5||16.2||8.9|
|FDI Stock (in % of GDP)||35.0||40.1||37.6|
Source: UNCTAD - Last Available Data.
Note: * The UNCTAD Inward FDI Performance Index is Based on a Ratio of the Country's Share in Global FDI Inflows and its Share in Global GDP. ** The UNCTAD Inward FDI Potential Index is Based on 12 Economic and Structural Variables Such as GDP, Foreign Trade, FDI, Infrastructures, Energy Use, R&D, Education, Country Risk. *** Green Field Investments Are a Form of Foreign Direct Investment Where a Parent Company Starts a New Venture in a Foreign Country By Constructing New Operational Facilities From the Ground Up. **** Gross Fixed Capital Formation (GFCF) Measures the Value of Additions to Fixed Assets Purchased By Business, Government and Households Less Disposals of Fixed Assets Sold Off or Scrapped.
Innovation Norway is a government agency designed to assist businesses by offering financing through Norwegian Industrial and Research Development Contracts.
Special restrictions apply in the following sectors:
- Acquisition of waterfalls, power supply rights and mining rights;
- Acquisition of land, real estate and long term leases;
- Acquisition of farmland and forests;
- The purchase of over 10 % of the capital stock of a Norwegian financial institution;
- Direct investments in petroleum exploration and exploitation are subject to a government license.
Regarding the financial crisis, fiscal policy has been very strong so far. However, because of the losses suffered by the pension fund in 2009, the government remains cautious.
If an investment requires a permit, the applicant should contact the Ministry of Trade and Industry.
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Last Updates: October 2014