Norway: Investing

FDI in Figures

According to UNCTAD’s World Investment Report 2024, FDI inflows to Norway decreased to USD 7.9 billion in 2023, compared to 9.6 billion one year earlier. At the end of the same period, the total stock of inward FDI stood at USD 157.1 billion. Despite the uncertain global economic situation, Norway continues to be a major investor abroad, with a total stock of outward FDI of USD 202.2 billion. The latest data from Statistics Norway show that the main sectors in terms of inward FDI are financial and insurance activities (16,2%), manufacturing (14,4%), mining and quarrying (12,4%), information and communication (8,1%), wholesale and retail trade (8,0%). In terms of ultimate investing country, the U.S. leads the way with 18.4% of the total stock, followed by Sweden (12.4%), the UK (7.6%), Finland (5.1%), and Switzerland (4.1% - Statistics Norway). According to the latest figures by the OECD, in the first six months of 2024, FDI to Norway were negative by USD 7.9 billion, compared to a positive flow of USD 2.9 billion recorded in the same period one year earlier.

While the country has a small domestic market, it possesses several assets, such as its geographic location in a fertile region, its favoured ties with the United States, its skilled and multilingual population, a modern economy and rich energy resources. Norway’s investment framework is primarily founded on the principles of national treatment, although ownership restrictions apply to certain natural resources and activities such as fishing, maritime, and road transport. The Norwegian government introduced a new investment screening regime, allowing Norwegian authorities to investigate and block FDI on grounds of national security, financial stability and autonomy. The decision applies to EU and non-EU investments alike. There are about 8,363 foreign-owned companies in Norway (U.S. State Department). Overall, Norway has a particularly favourable business climate, and the country ranks at 5th place out of 180 in the 2024 Corruption Perception Index. Furthermore, Norway ranks 21st among the 133 economies on the Global Innovation Index 2024 and 10th out of 184 countries on the latest Index of Economic Freedom.

Foreign Direct Investment	2020	2021	2022
FDI Inward Flow (million USD)	-8,229	1,749	-3,436
FDI Stock (million USD)	167,096	211,593	145,513
Number of Greenfield Investments*	52	46	49
Value of Greenfield Investments (million USD)	1,210	1,663	2,214

Source: UNCTAD, Latest data available.

Note: * Greenfield 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.

FDI STOCKS BY COUNTRY AND INDUSTRY

Main Investing Countries	2022, in %
Sweden	17.0
Luxembourg	12.2
The Netherlands	8.7
United States	8.1
United Kingdom	7.9
Denmark	6.8
Finland	4.9
Switzerland	4.2
Ireland	3.5

Main Invested Sectors	2022, in %
Financial and insurance activities	17.5
Wholesale and retail trade	11.7
Manufacturing	11.4
Information and communication	10.1
Real estate	8.7
Transportation and storage	6.3
Mining and quarrying	5.7
Professional, scientific and technical activities	4.4

Source: Statistics Norway, Latest data available.

Form of Company Preferred By Foreign Investors: Foreign investors can operate through a branch office or through a separate entity. Limited companies (public and private) and partnerships can be used.
Form of Establishment Preferred By Foreign Investors: The most common form of doing business for a foreign investor in Norway is a branch office or an incorporated subsidiary.
Main Foreign Companies: ExxonMobil, Royal Dutch Shell, BP Amoco, Total, ConocoPhillips, Chevron, Marathon, Halliburton, General Electric.
Sources of Statistics: Statistics Norway

What to consider if you invest in Norway

Strong Points

Advantages for FDI in Norway:

Norway has a very strong economy and encouraging prospects of development.
The high value-added sector of information and communication technologies is, for example, very well developed.
The public sector is well organised (around a sovereign fund in surplus that can intervene at any time in the economy) and the country has high quality infrastructure.
The workforce is highly skilled, multilingual and has one of the highest purchasing powers in the world.
As can be seen from its eighth spot in the World Bank ranking of countries where it is easier to do business (Doing Business Norway), the business environment in Norway is very positive and stable.
The banking and financial sectors as well as the fiscal and legal framework are also very robust.
The country's political environment is democratic, healthy and transparent.

Weak Points

Disadvantages for FDI in Norway:

Norway's economy is generally not very diversified and is therefore very dependent on the price of oil, and the country has already exceeded the peak of its production (even if new deposits have been discovered).
Like any open international economy, it is also very vulnerable to the economic situation of its main economic partners and the impact of the exit of the United Kingdom (Norway's largest export market) on its economy is still difficult to predict.
Due to the geographical isolation of certain regions of the country, expenditure in the areas of transport, logistics and telecommunication infrastructure is very high.
The country has put in place relatively strict labour laws that accentuate the extremely high wage costs in the country.

Government Measures to Motivate or Restrict FDI

The government maintains an open position towards FDI in Norway. Norway does not offer significant tax benefits to investors (whether foreign or Norwegian), but some benefits, such as lower social security contributions, lower tax rates and additional deductions for individuals apply for investments made in the less populated areas of northern Norway. Existing regulations, standards and practices may slightly favour Norwegian, Scandinavian and European Economic Zone investors.
For more information you can visit the Innovation Norway page, the government agency whose purpose is to help companies offer financing through the Industrial Development Contracts and Research in Norway.

Special restrictions exist in Norway and apply in the following sectors:

Acquisition of waterfalls, rights for power supply and mines
Acquisition of land, real estate and leases in the long term
Acquisition of cultivable land and forests
Purchase of more than 10% of the share capital of a Norwegian financial institution
Direct investments in exploration and petroleum operations that are licensed by the government

On January 1, 2019, a new law on national security came into force that provides the legal basis for a better evaluation of foreign investment by the government. ‘Target’ businesses are obliged to notify the relevant ministry under which they are regulated.

Protection of Foreign Investment

Bilateral Investment Conventions Signed By Norway: Norway has signed bilateral investment treaties with several countries. A list can be found on the UNCTAD Investment Policy Hub pages dedicated to Norway.
International Controversies Registered By UNCTAD: The ISDS Navigator contains information about known international arbitration cases initiated by investors against States pursuant to international investment agreements. Norway is involved in 5 cases as Home State of claimant and in 1 cases as Respondent State.
Organizations Offering Their Assistance in Case of Disagreement: ICCWBO , International court of arbitration, International chamber of commerce
ICSID , International Center for settlement of Investment Disputes
Member of the Multilateral Investment Guarantee Agency: Norway is a signatory to the Convention of the MIGA.

Country Comparison For the Protection of Investors	Norway	OECD	United States	Germany
Index of Transaction Transparency*	7.0	6.5	7.0	5.0
Index of Manager’s Responsibility**	5.0	5.3	9.0	5.0
Index of Shareholders’ Power***	8.0	7.3	9.0	5.0

Source: The World Bank - Doing Business, Latest data available.

Procedures Relative to Foreign Investment

Freedom of Establishment: Guaranteed.
Acquisition of Holdings: A majority holding by a foreign owned company in a Norwegian one is legal, and requires no notification to of clearance of a governmental agency. However, in certain sectors governing vital national interests, such as the power and energy sector (including oil, gas and hydropower) and the finance sector (including financial, credit, and insurance institutions), certain limitations on ownership and business operations apply.
Obligation to Declare: No specific text of law regulates foreign direct investments, but various sectors are governed by specific laws, which are handled by the respective ministries that oversee these sectors.
Competent Organisation For the Declaration: Ministry of Finance
Ministry of Trade, Industry and Fisheries
Norwegian Competition Authority
Requests For Specific Authorisations: Companies must obtain a concession to acquire rights to own or use various kinds of real property, including forests, mines, tilled land, and waterfalls. The Petroleum Act of November 1996 (superseding the 1985 Petroleum Act) establish that direct investments in petroleum exploration and exploitation are subject to a government licence. Media ownership is regulated by the Media Ownership Act of 1997 and the Norwegian Media Authority. No individual party, domestic or foreign, may control more than 1/3 of the national newspaper, radio and/or television markets without a concession. Financial Supervisory Authority permission is required for acquisitions of Norwegian financial institutions that exceed defined threshold level.

Office Real Estate and Land Ownership

Possible Temporary Solutions: Foreign companies don't have to seek concessions to rent real estate (commercial facilities, office space) if the rental period is under 10 years.
The Possibility of Buying Land and Industrial and Commercial Buildings: Generally it's possible for foreign investors to own real property, though ownership of certain real assets is restricted. Acquisition of real estate and land are subject to The Concession Act. These regulations apply when buying real estate or companies that hold real estate (or long term leases).
Risk of Expropriation: No cases of questionable expropriation. Expropriation is governed by The Land Act. Government takings of property are generally limited to non-discriminatory land and property condemnation for public purposes.

Investment Aid

Forms of Aid: No significant forms of investment aid. Norway’s SkatteFUNN R&D tax incentive scheme is a government program designed to stimulate R&D in Norwegian trade and industry.
Privileged Domains: There are incentives for implementation of green energy and technologies and public support and tax incentives for R&D investments.
Privileged Geographical Zones: Minimal taxation in the Svalbard archipelago and lower social security payments, lower tax rates and extra deductions in the sparsely populated areas of northern Norway. The economy of Svalbard is dominated by coal mining, tourism and research.
Free-trade zones: None.
Public aid and funding organisations: The Nordic Investment Bank, the Nordic Industrial Fund, the Nordic Environment Finance Cooperation. More information can be found at Bedin.no under the topic "Financing".

Investment Opportunities

The Key Sectors of the National Economy: The best business opportunities are consumer goods, information and communication technologies, construction and services for business, oil and gas, food processing, marine industry, fishing, shipbuilding, mechanical engineering and metals.
High Potential Sectors: Equipment / machinery and services for natural gas fields, telecommunications, naval and marine equipment, renewable energies, environmental technologies, medical equipment and supplies, security equipment, transport infrastructure (road network, rail network and urban transport), data centers, battery tech, life sciences, ocean tech, digitalisation, tourism.
Privatization Programmes: Norway has no current plans to privatize any state-owned enterprise.
Tenders, Projects and Public Procurement: Doffin , Public Procurement portal
Tenders Info , Tenders in Norway
Ted - European public markets , Business opportunities in EU 27
DgMarket , Tenders Worldwide

Sectors Where Investment Opportunities Are Fewer

Monopolistic Sectors: Postal services, railways, domestic production and retail sale of alcohol.

Finding Assistance For Further Information

Investment Aid Agency: Invest in Norway (Innovation Norway)
Start and run a business in Norway
Other Useful Resources: Oslo Chamber of Commerce
Kvasir Business Search Engine (in Norwegian)
Nortrade - Official Norwegian Trade Portal
Doing Business Guides: Altinn - Norwegian portal for dialogue between businesses and government agencies
Doing Business in Norway - UHY

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