Invest Estonia Nears Record-Breaking Investment Figures in 2023 with €336M in Foreign Capital

In 2023, Invest Estonia nearly matched its exceptional performance from the previous year by securing €336 million in foreign investments, leading to the creation of over 1,000 high-value jobs and the initiation of strategic projects. This achievement aligns with the record results of 2022, reinforcing Estonia's appeal to international investors despite a challenging global security landscape.

Kati Kusmin, head of the joint agency of EAS/Kredex, highlighted the complexity of the foreign investment climate, noting the cautious approach of investors due to the global security situation. Despite these challenges, Invest Estonia's robust performance reflects the enduring confidence investors have in Estonia, buoyed by the nation's solid international standing and ongoing efforts to enhance its image.

2022 saw Invest Estonia facilitating a historic influx of €351 million in foreign direct investments (FDI). "The continued investment over the past two years demonstrates that the conflict in Ukraine has not deterred foreign investors from Estonia," said Joonas Vänto, head of Invest Estonia. He emphasized the long-term decision-making process for foreign investors, who are drawn to Estonia's secure environment, stable business ecosystem, favorable tax policies, and skilled workforce.

Estonia stands out in several key areas, maintaining the best tax code in the OECD for a decade, leading in European PISA scores, and ranking among the top 10 for energy transition effectiveness according to the World Economic Forum.

Significant foreign investments in 2022 included Ericsson's €155 million commitment to establish a new technology and development center in Tallinn, promising 2,200 jobs and focusing on advanced technologies like AI and robotics. Additionally, Swedish company Smart Power Farm SPF AB announced plans for a €100 million organic production complex in Tootsi, powered by renewable energy and creating over 50 high-value jobs.

Despite these successes, Vänto acknowledges challenges in attracting further foreign investment, including the need for accessible green energy, more skilled workers, and efficient planning and permit processes.

In 2023, over 70% of the FDI was directed towards industry, with 10% targeting the IT sector. The leading sources of investment were Sweden, Japan, Finland, and Germany, building on the momentum of previous years where FDI figures showed a steady increase from €160 million in 2020 to €351 million in 2022.

For those interested in exploring business opportunities in Estonia, Invest Estonia offers e-Consulting services to get started.