Foreign direct investments in Norway, stocks, 1998-2006

The foreign investors’ equity capital amounted to NOK 346.3 billion, whereas other capital, mainly loans, comprised the rest. This amounted to NOK 236.4 billion.

More than 70 percent of the foreign direct investment capital in Norway at the end of 2006 belonged to European investors, of which 95 percent were investors within the EU. The largest investing countries were the five EU countries Sweden, Denmark, the United Kingdom, the Netherlands and France, as well as the USA. The foreign direct investment of these six countries comprised to approximately three-fourths of the total. The rest of the FDI in Norway at the end of 2006 can mainly be attributed to a few large investors in other countries.

The investments took place mainly within oil and gas exploration and manufacturing industries. These industries comprised about 55 percent of the foreign direct investment in Norway. Approximately half of the foreign direct investments within the manufacturing industries were in companies producing chemicals and chemical products. Other important FDI industries in Norway were wholesale and retail trade, financial intermediation and business activities.

Slightly more than half of the increase of foreign investors invested capital was due to increased equity capital. The rest was due to Norwegian companies’ increased net debt to foreign investors.

A new reporting system from 2004

Up to 2003 the stock of inward foreign direct investments was solely based on surveys conducted by the Central Bank of Norway (Norges Bank). As of 2004, Statistics Norway is in charge of the FDI statistics, and the figures are now founded on a new survey based balance of payments (BoP) reporting system. In addition, information from annual accounts, submitted to the Register of Company Accounts, has been used for 2004. This gives rise to a break in the time series between 2003 and 2004.

The population of companies in the former Norges Bank and the new Statistic Norway surveys are in principle equal also with respect to changes in both investing and investment companies. The largest difference between the two surveys is that Norges Bank’s survey was mainly based on consolidated accounts for Norwegian group of investment companies, whereas the new system is based on the accounts of each investment company. This may have a significant impact on the calculations of the equity capital as well as the assets and liabilities between the investor and the investment company.

Previously published FDI figures for 2005 have been revised based on new information. Another thing to be noted is that deposed dividend, which before 2004 was included in “other claims”, is now included in equity capital.

Tables:

• Table 1 Foreign direct investment in Norway. 1998 - 2006. Total. NOK million
• Table 2 Foreign direct investment in Norway. Geographical distribution. 1998 -2006. Total. NOK million
• Table 3 Foreign direct investment in Norway. Industrial distribution. 1998 -2006. Total. NOK million