The capital of Latvia - Riga is ranked 37th in the list of the most attractive European cities for investment for the next three years. Europe continues to be a desirable location for foreign investment in the long run. Although Latvia may not offer a very large market on its own, many other factors make Riga attractive for foreign direct investment: a high level of technological development, strong online economy & market development, people, a dynamic cultural and social environment, and, most importantly, convenient connection with other countries in the Eastern, Central and Northern European region and the rest of Europe.

Riga - Attractive Investment Destination

Evidenced by the results of the study of investment attractiveness EY Attractiveness Survey Europe, conducted by the audit company EY, this year Riga - the capital of Latvia is ranked 37th in the list of the most attractive European cities for investment for the next three years. The EY Attractiveness Survey Europe is conducted annually and collects both quantitative data on investment projects obtained by monitoring more than 10,000 news sources, and the results of a survey of more than 500 international investment decision makers.

Riga is ahead of cities like Glasgow, Valencia, and Stuttgart but on level with Geneva and Turin. EY Baltic underlines that this outcome should unquestionably be seen favorably: Riga stands out and effectively competes with medium-sized cities despite the fact that there are many economically robust cities in Europe.

Where to Invest in Latvia

Europe continues to be a desirable location for foreign investment in the long run. Although Latvia may not offer a very large market on its own, many other factors make Riga attractive for foreign direct investment: a high level of technological development, strong online economy & market development, people, a dynamic cultural and social environment, and, most importantly, convenient connection with other countries in the Eastern, Central and Northern European region and the rest of Europe.

Information and Communiations Technology

Technology has always been a significant determinant of a location's desirability, and in the next years, the digital industry is anticipated to boost across Europe. With 58% of investors believing that it is the most important industry, Latvia leads the list among the Baltic nations. The percentages for Estonia and Lithuania are 51 % and 46%, respectively, compared to the 45 % European average.

Over the years, the Baltic countries are becoming leaders for ICT businesses. ICT development trends provide doors to new possibilities. Information technology is a forward-thinking industry that is one of Latvia's fastest-growing sectors as of 2022.

Latvia outperforms many other nations in this sector, making it very attractive for foreign investors. It is one of the first nations to deploy a 5G network and has the 33rd-fastest internet speed in the world (Cable, 2021). It also ranks third among OECD nations for mobile usage (23 GB).

Bioeconomy and Woodworking

Given that Latvia is one of the greenest countries in Europe and that woods make up almost half of its territory, the bioeconomy sector—which includes sustainable agriculture, forestry, and fisheries—is crucial to the country's economy. Up to 40% of the country's exports are now made up of the bioeconomy sector, which is also crucial for generating employment in rural and regional areas. 

Latvia's advantageous mix of vast forest resources, strategic position, and a cost-effective labor population accounts for the industry's success. The sector has also been aided by government initiatives to promote sustainable bioeconomy.

Since the United Kingdom (which accounts for 17% of our exports), Estonia (12%), Germany (8%), Denmark (7 %), and Sweden (11%) account for the majority of Latvia's global exports, wood items created in Latvia may be found everywhere. Our woodworking sector is favoured by foreign investors. Each year the woodworking industry receives more than 600 million euros in foreign direct investment.

Engineering and Metalworking

In the past, Latvia's top industrial sectors have included engineering and metalworking. Today, it has evolved into a highly competitive, dynamic, and profitable business.

Let's add a few significant benefits! Having experienced and cost-effective personnel, great R&D capabilities, and, our geographic position, which means access to metal supplies from the Western markets, are the first things that immediately come to mind.

Metalworking sector in Latvia is in high demand having exports of 1.17 billion euros or more and the top export destinations for Latvia are Denmark (14%), Sweden (13%), Russia (11%) and Germany (10%). 

Biomedicine

Between the three Baltic countries, Latvia unquestionably stands out as a biomedical pioneer. Given the recent rapid rise of Latvian biomedical firms and organizations, such as Grindex, PharmIdea and BGI - the world’s largest genome sequencing centre, the sector of biomedicine in Latvia is growing, establishing itself as a prominant participant on the European market and beyond. 

The biomedical industry in Latvia combines excellent R&D capabilities, a well-established manufacturing infrastructure, and geographic and cultural closeness to markets in the east and west. Latvia exports the goods to numerous nations, both near and distant, including Canada, the USA, and Japan. 

Smart materials and Photonics

Latvia has historically been a center for science, with strong ties between academic, scientific, and industrial sectors. There are also well-established research clusters in Latvia. With the help of a well considered distribution of financing to scientific institutes, Latvia has established itself as the leader in the Baltic States for scientific excellence.

For Latvia's economy to develop, intelligent engineering, technology, and materials are essential. They contribute to the development of high value-added goods and services as well as new and inventive technology solutions. This industry serves as a foundation for other industries and supplies crucial systems and components (including precision medicine, ICT, smart cities, drones, green energy, bioeconomy and others).

Some of Industry Leaders:

RD Alfa Microelectronics develops and manufactures high reliability and radiation-hardened microelectronics components for aŠµrospace and defence equipment, with the help of the partner - European Space Agency.

HansaMatrix is an electronic system manufacturing, with partners like Facebook, Apple, Volkswagen and Boeing.

Fiber Optical Solution (FOS) – development of optical-fiber gyroscope. FOS has supplied high-precision gyroscope to world companies such as NASA, Applanix Corporation and Lockheed Martin.

Sidrabe - more than 50 years of experience in developing unique thin-film technologies for NASA.

Why Latvia?

In addition to offering a strategic location for corporate activities aimed at the developed economies of the EU and rising markets in its eastern neighbors, Latvia may be proud of its distinctive geographic and cultural position. Between Scandinavia, the EU, and Asia, Latvia serves as a natural crossing point.

The foreign trade and customs policies of Latvia are based on free trade principles. As a member of the European Union, Schengen, and the World Commerce Organization, Latvia benefits from free and open trade on all global markets. To facilitate successful planning and cooperation with trading partners throughout the world, customs and border processes have been harmonised. 

Local businesses in Latvia are working to expand their exports, which is fostering an environment that enables enterprises to expand both domestically and internationally.

EU LAW FIRM works to help locally registered businesses expand into other markets and help foreign companies to enter Latvian and European market.

For legal advise and guidance on investment possibilities in Latvia, please contact EU LAW FIRM lawyers in Latvia.

 

Contact EU LAW FIRM lawyers in Latvia.

E-mail: info@eulawfirm.eu

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