FDI in Sweden

Overview by Globlatrade.net:

FDI in Figures

FDI flow to Sweden slowed down in 2009, due to the global recession, then recovered with the resumption of trade and this trend should continue. The country maintains a high level of appeal to foreign investors because of its multilingual and qualified workforce, its very high per capita purchasing power, its economy at the forefront of new technologies and innovation and its advantageous tax regime. The country is preceded only by Ireland, Belgium and Hong Kong in terms of per capita FDI receipt.

The government has undertaken to develop support for investments through expanding sectors (biotechnologies and food processing), as well as on 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.

Foreign Direct Investment 200720082009
FDI Inward Flow (million USD) 27,15733,70410,851
FDI Stock (million USD) 292,513272,146304,504
Performance Index*, Ranking on 141 Economies 563964
Potential Index**, Ranking on 141 Economies 910-
Number of Greenfield Investments*** 868698
FDI Inwards (in % of GFCF****) 30.034.418.9
FDI Stock (in % of GDP) 63.255.875.0

Source: UNCTAD

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.


FDI Inflows By Countries and Industry

Main Investing Countries 2009, in %
The Netherlands 15.2
Luxembourg 14.5
UK 13.4
Finland 9.6
Denmark 7.7
Belgium 7.2
USA 6.9
Norway 6.4
Germany 5.6
Main Invested Sectors 2009, in %
Pharmaceutical & Chemical Industry 18.9
Engineering 9.7
Electricity, gas, heating, water 8.9
Goods trade 8.5
Food industry 8.2
Financial Services (except Banking) 7.4
Construction and Real Estate 5.7

Source: Swedish Statistics Bureau

Form of Company Preferred By Foreign Investors
The limited liability company is the simplest and most preferred structure, especially for foreign companies (SMEs wishing to set up in Sweden).
Form of Establishment Preferred By Foreign Investors
A subsidiary or a representative office.
Main Foreign Companies
In 2006, 11 100 foreign companies set up in Sweden from the EU, the USA, South Africa, Malta, Saudi Arabia, India, Bahrain, etc.
Sources of Statistics
Invest in Sweden Agency (ISA)

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Why You Should Choose to Invest in Sweden

Strong Points
The political and economic situation is very favorable and the quality of the business environment is good. This environment favorably influences the way companies behave in making payments. The average probability of defaulting is very low.
According to the World Bank, Sweden is amongst the world's first 10 economies in terms of facility of business undertakings. The survey takes into account the following indicators: the formation of one's own company, hiring and dismissing employees, executing contracts, loan availability, registering one's capital and investor security.
The Swedish tax system is direct and corporate tax is amongst the lowest in Europe. The country applies contribution exemptions, authorizes total tax deductions on interest, and does not have strict capitalization rules.
The legal system is balanced and ensures sound, transparent and reliable hearings. Contracts are standardized and documents are often used for simple procedures, especially for mortgages.
The quality of management and consultancy services is very high, and commercial formalities and procedures are easy to undertake.
For further information, consult the ISA website.
Weak Points
The country's only weak point is the high cost of manpower.
Government Measures to Motivate or Restrict FDI
Since it joined the European Union, the Swedish government has established a number of reforms to improve the business legal environment. This has enabled it to attract foreign investors and increase competitiveness.
Sweden is ranked n° 1 by the OECD in terms of public spending, especially in promoting investment.

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