In this page: FDI in Figures | What to consider if you invest in Sweden | Protection of Foreign Investment | Procedures Relative to Foreign Investment | Office Real Estate and Land Ownership | Investment Aid | Investment Opportunities | Sectors Where Investment Opportunities Are Fewer | Finding Assistance For Further Information
According to UNCTAD's World Investment Report 2023, FDI inflows to Sweden more than doubled in 2022, reaching USD 45.9 billion, up from USD 21.1 billion one year earlier. The country was thereby the most attractive market in Europe for FDI and reached ninth place globally. In the same year, the stock of FDI stood at USD 353.8 billion. Sweden is also a big investor, with an outward FDI stock of USD 481.7 billion. In terms of FDI stocks, the UK, Luxembourg, the Netherlands, Germany, the U.S., and Norway are the main investing countries in Sweden. As of 2021, Sweden's FDI stock totalled SEK 3,722 billion, with a significant presence from neighbouring Nordic and other European countries. European companies collectively hold 85% of foreign-owned assets. Notably, Luxembourg and the Netherlands serve as major investment hubs, although the controlling parent company is often located elsewhere, occasionally even in Sweden. The largest foreign assets are held in legal, professional, scientific and technical activities, manufacturing, the financial and insurance activities sector, wholesale and retail trade, and information and communication. According to the latest figures from the OECD, in the first semester of 2023, FDI inflows to Sweden reached USD 9.9 billion, compared with USD 22.3 billion recorded in the same period one year earlier.
Despite the unfavourable international situation, the country maintains a high level of appeal to foreign investors, because of its multilingual and qualified workforce, very high per capita purchasing power, an economy at the forefront of new technologies and innovation, as well as its advantageous tax regime. The Swedish government has undertaken measures to develop support for investment, focusing on key sectors (biotechnologies and food processing), as well as rapidly growing markets (Baltic countries, India, Brazil, etc.). There are gaps in the food-processing field, as well as in the housing and interior design sectors. On September 13, 2023, the Swedish Parliament approved the FDI Act, creating a national screening system for foreign direct investments. This legislation, effective December 1, 2023, empowers the Inspectorate of Strategic Products (ISP) to assess FDIs that may impact Sweden's national security, public order or public safety. All foreign investments closing on or after December 1, 2023, must comply with mandatory notification and approval procedures under the FDI Act, regardless of when the investment agreement was initiated. As evidence of the quality of the Swedish business climate, the country ranks high on most international investment lists, including the AT Kearney 2023 Foreign Direct Investment Confidence Index (17th worldwide), the Global Innovation Index 2023 (2nd worldwide, the country has been in the top 3 for over a decade), and the 2023 Index of Economic Freedom (9th).
Foreign Direct Investment | 2020 | 2021 | 2022 |
---|---|---|---|
FDI Inward Flow (million USD) | 21,514 | 21,133 | 45,963 |
FDI Stock (million USD) | 395,715 | 387,483 | 353,791 |
Number of Greenfield Investments* | 93 | 95 | 125 |
Value of Greenfield Investments (million USD) | 2,332 | 2,858 | 2,616 |
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.
Main Investing Countries | 2022, in % |
---|---|
Luxembourg | 19.1 |
Netherlands | 14.6 |
United Kingdom | 12.4 |
Norway | 8.5 |
Germany | 7.9 |
USA | 7.8 |
Finland | 6.4 |
Denmark | 5.0 |
Main Invested Sectors | 2022, in % |
---|---|
Manufacturing | 26.3 |
Financial and insurance activities | 25.6 |
Legal, professional, scientific and technical activities | 12.4 |
Wholesale and retail trade | 9.5 |
Real estate | 6.5 |
Energy and recycling | 5.7 |
Information and communication | 4.5 |
Source: Statistics Sweden, Latest data available.
For more information, visit the Business Sweden website.
Disadvantages for FDI include:
The Swedish government offers certain incentives to set up a business in targeted depressed areas. A range of regional support programs, including location and employment grants, low rent industrial parks, and economic free zones are available.
Sweden does not have a national security screening mechanism for inbound foreign investment. However, the government is considering how to implement the EU Commission’s investment screening framework.
Business Sweden is the investment promotion agency tasked with facilitating business.
Country Comparison For the Protection of Investors | Sweden | OECD | United States | Germany |
---|---|---|---|---|
Index of Transaction Transparency* | 8.0 | 6.5 | 7.0 | 5.0 |
Index of Manager’s Responsibility** | 4.0 | 5.3 | 9.0 | 5.0 |
Index of Shareholders’ Power*** | 7.0 | 7.3 | 9.0 | 5.0 |
Source: The World Bank - Doing Business, Latest data available.
The investment promotion agency in the country gives information about the authorisations necessary for establishing a business.
Sweden does maintain some limitations in a select number of situations:
There are a number of incentives available to both Swedish and foreign owned companies, including:
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Latest Update: September 2024