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15925
Strong increase in foreign direct investment
statistikk
2007-10-09T10:00:00.000Z
External economy
en
diu, Foreign direct investments, stocksForeign assets and liabilities , External economy
false

Foreign direct investments, stocks, 1998-2005

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Strong increase in foreign direct investment

At the end of 2005, Norway's stock of foreign direct investment abroad (FDI) amounted to NOK 661 billion, an increase of NOK 102 billion from 2004. The US has become the second most important investment country after Sweden, while the share invested in Europe is declining.

Following some years of modest growth, the direct investment abroad increased by a strong 18 per cent and was 60 per cent higher at the end of 2005 than at the end of 2000. Direct investment comprises long-term equity and loan claims on foreign enterprises and the threshold for direct investment is 10 per cent ownership of the equity capital.

The US has become more important

During 2005, the share of FDI in the US increased considerably, and with a share of 13 per cent of total FDI stocks the US became the second most important country for Norwegian FDI. Sweden is still the most important country with 15 per cent. The two are followed by Belgium and Luxembourg, but this is related to large net claims on so-called enterprise group internal banks in these countries.

The proportion of Norwegian direct investment in European countries is falling. At the end of 2005, 56 per cent of the outward direct investment (FDI) was located in European countries, down from 62 per cent at the end of 2004. Direct investment in the new Central and Eastern European EU member states has increased, but only to 3 per cent of the total FDI. 20 per cent of the FDI was located in North America and 11 per cent in Asia at the end of 2005. Singapore was the most important country in Asia, and with a 6 per cent share of the total FDI has overtaken Denmark.

More investment in oil business

Investments in oil and gas exploration have increased and account for 32 per cent of the total FDI compared to 28 per cent in 2004. The manufacturing and mining industries have traditionally been very important, but their share of the total FDI has decreased over several years and accounted for 36 per cent of direct investments abroad at the end of 2005, down from 42 per cent in 2004. Investments in other transport activities, post and telecommunications had increased to 9 per cent at the end of 2005.

The allocation by industry is based on the industry of the resident (Norwegian) investor and this may differ from the industry of the foreign investment company.

Data sources and revisions

The figures presented here are based on an annual survey conducted by the Directorate of Taxes. The survey covers foreign enterprises in which a Norwegian investor has direct ownership of 10 per cent or more, or indirect ownership of 50 per cent or more. The figures represent the book value of the foreign investment companies, which can be very different from the market value. Invested capital in directly and indirectly owned companies is aggregated without netting. This leads to higher estimates of invested capital abroad compared with the use of consolidated accounts for the directly owned companies. For more information, see About the statistics.

Previously published statistics for 1999 to 2004 have been revised. As a result, the figures for 2004 published in 2006, showing a decline in direct investment as regards equity and loans, have been changed. Although several major companies sold their businesses abroad in 2004, the total amount of foreign direct investment nevertheless increased.

The statistics on return on foreign direct investment for 2005 have been postponed due to quality issues. Statistics Norway is working on new methods for compiling the data.

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