Iceland review - 2014, Page 100

98 ICELAND REVIEW
Iceland’s value proposition for investors
The latest international competitiveness
reports confirm that Iceland has a solid
foundation to build on. The country’s high-
est ranking is for infrastructure and in criteria
such as R&d personnel per capita, internet users,
future energy supply, education expenditure,
green technology solutions, easy access to water,
minimal electricity costs and internet bandwidth,
Iceland ranks amongst the world’s top nations.
Iceland focuses on a favorable environment for
businesses in general, including low corporate
tax, availability of land, efficient business environ-
ment and a new incentives regime, offering a
range of benefits from low corporate tax ceilings
and exemption from charges to direct training
grants.
Bridging MarketS and offering free
trade
Iceland is ideally located right between two of the
world’s strongest markets, North America and
Europe. The flight time to Boston is five hours;
London is three hours away. Regular shipping
takes place to both sides of the Atlantic: three
days a week to Europe and seven days a week
to the United States.
As a member of the EEA, Iceland is a part
of the European internal market with tariff-free
access to the European Union. Iceland has
recently concluded an extensive free trade agree-
ment with China which will open up new and
exciting opportunities for companies located in
Iceland.
Cool loCation
Iceland’s claim to be a cool location does not
only refer to the booming tourism industry, vibrant
cultural scene and world-renowned creative indus-
tries. In the case of data centers, cool is meant lit-
erally, as the temperate climate means year-round,
natural and cost-free cooling, which reduces
electricity consumption. Add to this an abundance
of green energy, an educated and IT-minded work-
force and multiple submarine fiber optic cables
connecting Iceland to Europe and North-America
and you have an ideal and cost-competitive loca-
tion for data centers.
Why iCeland?
Advanced economy and infrastructure, right
between two of the world’s strongest markets.
Europe’s most competitive prices and long term
contracts for green energy from vast renewable
hydro- and geothermal resources.
Low corporate tax, an efficient incentives regime
for FdI and European legislative framework.
A young nation, educated and multilingual
workforce in a highly flexible labor market, willing
to adopt new technologies.
A safe, family-friendly environment, spectacular
nature and an abundance of low-cost land for
development.
A well-educated nation with a top-rated edu-
cation system welcomes industries that demand
highly skilled workers. Life sciences, various
creative industries, production of computer
games, clean-tech companies and high-tech
solutions for the food industry and fishing are
just examples of the growth in knowledge-based
industries in Iceland. People are generally very
open-minded towards new technology—it is no
surprise that, according to the Global Innovation
Index 2013, Iceland ranks third when it comes to
employment in the knowledge-intensive services.
PeoPle, PoWer and land
Iceland has vast spaces of land available close
to advanced infrastructures and the power grid.
Industrial scale pesticide-free greenhouses and
fish farms benefit from the proximity to geother-
mal power plants. The available steam, electricity
and chemicals from the geothermal power plants
make them ideal for green chemical industries
such as the production of Sodium Chlorate, Poly
Silicon and Carbon Fibers.
Land is usually leased from local munici-
palities and rates can be negotiated. The diverse
and otherworldly landscape of Iceland, sound
infrastructure, rich cultural heritage, the heal-
ing powers of geothermal water and advanced
health care system have led to rapid growth of
the tourism industry with increased emphasis on
health and lifestyle-related tourism, conferences
and year-round adventures.
Competitive green energy, advanced technical infrastructure, a strong R&D tradition,
sound business environment with low corporate tax and incentives for both foreign direct
investment and R&D projects, all play a part in Iceland’s value proposition to foreign
investors. Icelanders are looking towards knowledge-based industries, diversification and
the green economy as a way forward. Attracting FDI is important to Iceland.