Faroe Business Report — The International Review of Faroe Islands Industry and Trade - Faroe Business Report — The International Review of Faroe Islands Industry and Trade
Business Environment
In the fight for competitive advantage, the microcosmos that is the Faroes has a secret weapon in its compactness compared to other places — which, by the aid of scientific research, can pave the way for breakthroughs at breakneck speed.
For most people it’s hard to imagine a nation of less than 50,000 inhabitants. OK, add another 50,000 for all those living in other countries temporarily or permanently — but how on earth is it possible for such a small group of people as the Faroese to take part in the global economy, let alone gain competitive advantage?
Minister of Trade and Industry Johan Dahl looks at full-scale development of smart energy, oil and gas exploration, a new research park to boost biotech, foreign direct investment — and entrepreneurship and innovation in schools.
Few will dispute that there is a sense that something is stirring in the Faroese business environment — some important developments, some milestone events, or just some changes taking place in result of global influences. Whatever its actual part in the processes at play, the Ministry of Trade and Industry looks confident as it continues to roll out its ‘Growth Package’ initiative of last year.
Biotechnology is making gains in the Faroe Islands with gene technology leading the way — finding competitive advantage in the unique compactness of Faroese society, including a nationwide genealogy that spans four centuries.
There was a time when advanced genetic research was reserved to only a few institutions with very sizable resources — think the U. S. Department of Energy’s Office of Science, whose international Human Genome Project (1989-2003) laid the basis for subsequent progress in gene technology.
A new research park is to be opened this year in the Faroe Islands to provide a laboratory center for research departments and PhD students, aimed at stimulating domestic research in biotechnology and other scientific fields.
It’s an open secret that the few laboratories scattered across various departments of businesses and research institutes around the Faroes are no match to the growing scientific ambitions of the islanders. With varying degrees of success, plans started to emerge a few years ago of building a research park to help increase scientific research activities in the country through coordinating facilities and attracting international projects; other incentives that were cited highlighted the benefits of advancing knowledge in such fields as biotechnology, and the aim of generally upgrading the status of Faroese research.
As issues of sustainability gain prominence at sea and on land, Faroese businesses and government agencies place new bets on research and development in renewable energy and clean technology.
You may find the freshest air, the cleanest seas, and the most unspoiled country anywhere; and you may even find the highest levels of environmental awareness that you could ever imagine. But you won’t find political environmentalism in the Faroe Islands. The aggressive nature of radical activism has always been viewed with skepticism here; the Faroese despise its often inconsistent style and tell-tale signs of urban non-awareness of the natural order of things. “Let’s get real,” they’d say.
After having payed undivided attention to fishing for many years, Faroese society appears to be awakening to its natural advantage for maritime business in a broader sense, according to lawyer and legal adviser Annfinn V. Hansen.
Since the recent revamp of the Faroe Islands International Ship Register (FAS), significant growth in the merchant shipping sector is fast becoming a real possibility for the Faroese. As the number of merchant vessels flying the Merkið (‘The Mark’ or ‘The Banner’) keeps rising toward an expected 100 within the next year, more maritime consultancies are lining up to serve an industry that has been up and coming for a long time in the North Atlantic archipelago.
Going from 1,000 to 200,000 travelers per year in five decades, Vagar Airport braces for the next leap forward as its runway extension nears completion in a bet on airline competition to make air travel prices more attractive.
It’s been 50 years — in the spring of 2012 when the current extension of Vagar Airport is expected to be completed — since civil aviation first linked the Faroe Islands with the rest of the world. The lengthening of the runway from 1,250 to 1,800 meters was largely conceived with one prime challenge in mind: introducing airline competition to drive down prices of air tickets.
By entering commercial and retail banking in the Faroes through the purchase of a majority stake in Eik, TF Holding changes the financial services landscape — consolidating its position as the country’s leading private investor.
Few will question that TF Holding, the financially strongest player on the Faroese business scene, made a good deal in January this year (2011) when it purchased 70 percent of the shares of Eik Banki with an option to acquire the remaining 30 pct. in the future. Priced at 450 million dkk (60m eur), the majority stake in Eik was purchased from Denmark’s state-owned Financial Stability Company, which had taken over the troubled bank last year.
BankNordik Corporate Finance, an undisputed leader in its field, offers comprehensive advice for foreign investors looking to increase their interests in the Faroe Islands as well as helping Faroese companies expand into overseas markets.
Since its inception in 2006, BankNordik’s dedicated Corporate Finance team has been involved in some of the most major corporate deals in the Faroe Islands, including this summer’s 1.1 billion dkk (148m eur) acquisition of fishmeal and feed factory Havsbrún by aquaculture company Bakkafrost.
Welcome to the 2011 Edition of the Faroe Business Report
I’m proud to present the 6th edition of the Faroe Business Report. It’s a pleasure again this year to bring you this information package about the Faroese business scene in cooperation with leading businesses and government departments and agencies. I encourage you to take a read to check the state of affairs in the Faroese business environment and see what some of the main events are compared to last year or a few years back. I guarantee that there’s quite a few things that happen in the course of a single year — major change can occur very quickly in the Faroe Islands.
Búi Tyril
Publisher and Editor in Chief
Reach International Businesspeople with an Eye on the Faroe Islands
Sponsoring an article or placing an ad in the Faroe Business Report is a great way of accessing important market segments or conveying your values to key constituencies. For those keen to share with an international audience what their position in the Faroe Islands may mean, this yearly publication is recognized as the information medium of choice — an undisputed leader in its field.
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Sannførandi søgur byggja álit millum viðskiftarar og veitarar
Fyri bæði fyritøkur og stovnar er umráðandi at samskifta væl við umheimin, soleiðis at góð og hóskandi kunning altíð er tøk í rættari tíð. Hesin samskiftis tørvur ger seg altíð galdandi, eisini tá vit ikki beinleiðis síggja hann.
Hetta kemst millum annað av at broytingar við meir ella minni avgerandi ávirkan á virksemið hjá fyritøkuni ella stovninum kunnu henda óvæntað skjótt.