ICELAND
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A view of the capital,
Reykjavik, with the
mountains beyond.
.com/Hannamar
kphoto
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it would be more complicated. For outside tourism has boomed. Icelanders who almost
Real estate
investors, anything energy-intensive – that overnight found the rest of the world beyond
Rental price for offices and residential in
needs electricity – warrants looking into. If you their price range have also now become tourists
Reykjavik: 1,000 -1,800 IsK
have a long-term project you can negotiate in their own land.
(£.6.50 – £11 per square metre, calculating £1 to 170 ISK)
with the power companies.’ Industrial sites, whether at international
Purchase price for residential:
While unemployment is unwelcome for its airports or natural harbours, are widely
170,000 – 260,000 IsK (£100-£160 per square metre)
victims, it could, she says, add to the attraction available at competitive prices. Greenfield
for potential foreign investors. “Before the crisis, sites are inexpensive and local authorities have
Amid the tumult it can be easy to forget Iceland was importing labour. But now that it’s development strategies to attract investors.
Iceland’s strengths. It’s a country of well- risen to nine to 10 per cent, a lot of qualified Corporate tax, recently reduced to 15 per cent
educated pragmatists; a dynamic, technology- English-speaking people are out of work – a from 18 per cent, is one of the lowest in Europe;
driven society. Most of its energy remains talented pool you didn’t have a year ago. the system relatively simple.
unharnessed. Its seas are rich in fish. The export ‘Local labour has been very expensive and A ‘one-stop shop’, Invest in Iceland, offers
base is diverse; the labour market flexible. the booming finance sector meant people were free advice on locations. It arranges contacts
The new government recently proclaimed easily head-hunted away from other jobs. Now with relevant authorities and companies, and
more than 40 actions it intended carrying out it’s half as expensive. though I don’t know how fact-finding visits. Access to official bodies and
in its first hundred days. One seasoned Iceland- long that will last.’ agencies is easy: Iceland is mercifully free of
watcher, familiar with the economy and culture, Foreign direct investment (FDI) in Iceland red tape. New companies can be registered in
believes foreign businesses should think about has mainly concentrated on natural resources, a day.
investing there. fisheries products and industries that use hydro Iceland is a founder member of the 30-nation
‘My advice to outsiders is don’t get scared. and geothermal power. But it has more to offer: European Economic Area (EEA), a free-trade
Things were crazy last October but they’re a workforce that includes experts in software zone of 450 million people that allows tariff-
settling down,’ she says. ‘Having the IMF here and research fields; retail, the health sector and free movement of goods, services, capital and
is a good thing – it makes Iceland realise it mobile telecoms. labour. EU commercial legislation and directives
needs outside expertise. The banks have foreign Other growth areas include pharmaceuticals apply. In principle, foreign ownership of business
advisors too, and the government – a lot of export and biotechnology. Medical tourism is is unrestricted apart from sectors such as fishing,
people aiming to do the right thing.’ now starting to flourish. ‘Our health system is energy production and aviation.
But getting a toehold in Iceland is easier excellent and there are waiting lists for clients More than 85 per cent of employees belong
for the big fish, she feels. ‘If you’re Google, the with insurance,’ says Hilmarsson. to unions, but these are apolitical and have
chances are you have your money lined up, no Iceland’s volcanic terrain has always been a backed wage restraint under agreements with
problem. But if you’re a smaller start-up I think tourist magnet but, since the krona’s collapse, employers and the government. Approval by a
14 pAthfINDEr busINEss l JUNE/JULY 2009
PBS12 pp12-19 Iceland.indd 14 8/6/09 12:49:22
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