The Latvian Investment and Development Agency (LIAA) has attracted 8 investment projects for 73 million euros in the first eight months of this year, and a total of 459 jobs will be created in these companies, the agency informs.
There are other investors who are close to making a decision on investment, whose total amount of investment could exceed 100 million euros.
The total investment project portfolio of LIAA’s clients has currently reached 5 billion euros, which are divided into approximately 150 active projects.
According to LIAA, investment projects have been launched this year in such sectors as biomedicine, energy, smart materials, electronics and business services.
Investors represent countries such as the USA, Great Britain, Switzerland, Sweden, Norway, Ukraine and Lithuania.
Commenting on the attraction of investors, LIAA director Kaspars Rožkalns admits that initially after the start of the war started by Russia, there were fears that the interest of investors might decrease due to security reasons, but this has only been partially confirmed.
“Investors’ interest has even increased, however, it should be expected that the time to make a decision will also increase, as investors evaluate the new risks much more carefully,” emphasizes Rožkalns.
Also, the director of LIAA believes that Latvia is currently facing a strategic decision on how to respond to the interest of companies of Western origin that want to move their companies from Russia and Belarus.
According to the data of the auditing company EY, in 2021 Latvia ranks tenth in Europe in terms of the number of new projects per million inhabitants, while Lithuania is eleventh, while Estonia is in 24th place.
This year, Riga ranked 37th in Europe as the most attractive city for investments in the next three years. Riga shares this place with Geneva and Turin, but is ahead of, for example, well-known cities such as Glasgow, Valencia and Stuttgart, EY research data reveals.
In order to promote faster economic growth, LIAA mainly focuses on “high added value” investment projects, Rožkalns admits.
Among the companies that entered Latvia this year is a Swedish technology company Anodox Energy Systemswhich intends to develop an electric car battery production plant in Riga.
On the other hand, another company that entered Latvia is a Ukrainian company Enamine, is the world’s leading supplier of chemical compounds and related services to the pharmaceutical industry. According to Rožkalns, the entry of this company will strengthen the currently rapidly growing biomedical ecosystem.