6 benefits and reasons for doing business in Norway

If you're researching whether Norway is the right location for your venture, understanding the country's business environment is a strong place to start. Norway consistently ranks among the world's most stable and competitive economies, offering a familiar legal framework for companies used to operating within the EU. This article covers six reasons companies choose to do business in Norway. Whether you're still in the research phase or actively planning market entry, these factors are worth weighing before you commit.

1. Why is Norway considered an economically stable country to do business in?

Norway has a strong and stable economy that has proven resilient over time, with one of the highest standards of living in the world.

The economic consequences of the Covid-19 pandemic were less dramatic in Norway compared to other EU countries, and the Norwegian economy showed high activity coming out of the pandemic. The same pattern held in the aftermath of the 2008 financial crisis. In other words, Norway is considered an economically safe country to conduct business in, where the risk of complications from outside economic shocks is mitigated.

Also read: Norwegian infrastructure, investment opportunities

2. What makes Norway competitive and efficient for business?

Norway ranks among the top countries in the world for competitiveness. The country's egalitarian culture and the trust between employers and employees strengthen innovation processes and lead to greater efficiency.

In addition, close cooperation between the government, industry confederations, and labor unions creates stability and low conflict levels in the labor market.

Also read: Norwegian business culture

3. How does Norway's EEA membership benefit foreign companies?

Norway is not a member of the EU, but the country is integrated in the EEA-agreement. This means that Norway is an equal partner in the EU internal market on the same terms as other EU-countries, providing a familiar legal experience for companies used to operate within the EU.

4. Future investments in Norway are promising

The Norwegian government's National Transport Plan for 2025–2036 allocates NOK 1,308 billion over the twelve-year period — NOK 1,208 billion in state funding and NOK 100 billion in toll financing — for the improvement and building of railways, roads, shipping infrastructure, and public transport.

In addition, projections show a future increase in investment across manufacturing, mining, oil and gas, seafood, and renewable energy. As a smaller country, Norway depends on foreign companies with specialized knowledge in these areas to meet substantial demand for such services.

Also read: Business opportunities in Norway

5. Can small and medium-sized businesses access Norwegian public contracts?

Government contracts are awarded through public procurement, which at first glance can seem relevant only to larger companies. However, using subcontractors is highly common in public procurement contracts, creating a real opportunity for medium- and small-sized businesses as well.

The Norwegian government publishes relevant public procurement contracts through the website "Doffin," which is open to the public. This makes it easy to find relevant projects, detailing the type of work needed, qualification criteria, total project value, timeframe, and the region of Norway where the work will take place.

6. Are there subsidies for sustainable businesses in Norway?

To encourage green and sustainable business activity, various organizations in Norway offer subsidies to companies that meet their requirements. This makes Norway an attractive country to expand into, especially for businesses that treat sustainability as a core value.

With the EU Taxonomy applying to all companies operating within the EU/EEA, doing business in an environmentally friendly manner is more attractive than ever.

Also read: Doing business in Norway – subsidies for businesses looking to go green

Ready to start doing business in Norway?

Needless to say, doing business in Norway demands meticulous planning and extensive research. In our guide , you're provided with an detailed overview of Norwegian compliance requirements, equipping you with the knowledge needed to navigate the intricacies of doing business in Norway.

However, it's essential to recognize that Norway's status as a non-EU member can add complexity to compliance matters. Therefore, it's crucial not to underestimate the potential challenges and intricacies associated with doing business in Norway. Therefore, do not hesitate to seek legal advice from someone with experience and know-how in navigating this regulatory landscape.