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 2022, FDI inflows to Sweden increased 43.4% in 2021, reaching USD 27 billion, up from USD 18.8 billion one year earlier. In the same year, Sweden was in 14th place among the world's most attractive countries for investments. The stock of FDI stood at USD 386.5 billion in 2021, around 61.6% of the country’s GDP. Sweden is also a big investor, with an outward FDI stock of USD 447.5 billion (71.3% of GDP). In terms of FDI stocks, the UK, Luxembourg, the Netherlands, Germany, the U.S., and Norway are the main investing countries in Sweden. The largest foreign assets are held in the financial and insurance activities sector, manufacture of petroleum, chemical products, rubber and plastic products. In 2021, the largest increase was recorded in the information and communication sector (data Statistics Sweden). According to the latest figures from OECD, in the first semester of 2022, FDI inflows to Sweden reached USD 22.6 billion, up by more than 40% compared to 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. The government assigned the Inspectorate of Strategic Products (ISP) and the Swedish Defence Research Agency (FOI) the monitoring of FDI in sensitive areas. Sweden is one of the few EU Member States that did not yet introduce FDI screening rules. However, proposed legislation was presented, which is expected to enter into force in 2023. As evidence of the quality of the Swedish business climate, the country ranks high on most international investment lists, including the Economist Business Environment ranking (7th out of 82 countries), the AT Kearney 2022 Foreign Direct Investment Confidence Index (13th worldwide), and the Global Innovation Index 2022 (3rd worldwide, the country has been in the top 3 for over a decade).
|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||2019, in %|
|Main Invested Sectors||2019, in %|
|Financial and insurance activities||17.2|
|Wholesale and retail trade||11.5|
|Energy and recycling||6.7|
|Legal, professional, scientific and technical activities||4.9|
|Information and communication||3.4|
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:
Any Comment About This Content? Report It to Us.
© eexpand, All Rights Reserved.
Latest Update: September 2023