Investing in Iceland in 2026
Europe & Central Asia
82
Score
Safe Investment Destination
Strong fundamentals, stable governance, favorable investment climate
Iceland earns an investment score of 82/100, placing it in the safe category for global investors. Strong fundamentals, stable governance, favorable investment climate. The country's standout dimensions are political stability (92/100) and business climate (82/100), with overall GDP of $28.8B and per-capita output of $75,420. Growth is running at 2.5% with 3.2% of GDP arriving as foreign direct investment. Inflation is contained at 5.2%. The sovereign holds a NR credit rating, generally considered speculative-grade with elevated default risk. Investment opportunities cluster around Geothermal Energy (sector score 88/100, currently growing), which represents 5.2% of GDP. Trade openness sits at 88% of GDP, a useful proxy for how integrated Iceland is with the global economy.
How Iceland's investment score has evolved over time
Geothermal Energy
5.2% of GDP, growing
Tourism
8.8% of GDP, growing
Fisheries
8.5% of GDP, stable
Aluminum Smelting
6.5% of GDP, stable
World Bank Governance Indicators (-2.5 to +2.5, higher is better)
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Is Iceland a safe country to invest in?
Iceland carries a safe risk rating with an overall investment score of 82/100. Strong fundamentals, stable governance, favorable investment climate. Sub-scores: economic health 80/100, political stability 92/100, business climate 82/100, financial strength 78/100, growth potential 72/100.
What is Iceland's sovereign credit rating?
Iceland holds a credit rating of NR, reflecting its ability to meet sovereign debt obligations. Credit ratings are a key signal of macro-financial health and a prerequisite many institutional investors require before allocating capital.
What are the strongest sectors for investment in Iceland?
The top investment sectors in Iceland are Geothermal Energy, Tourism, Fisheries. Geothermal Energy leads with a sector score of 88/100 and represents 5.2% of GDP. Its current trend is growing.
What is Iceland's GDP growth rate?
Iceland's most recent GDP growth was 2.5%, with total GDP of $28.8B and GDP per capita of $75,420. Inflation is running at 5.2% and the current account balance is 1.5% of GDP.
How does Iceland score on governance and rule of law?
On the World Bank Governance Indicators (scale -2.5 to +2.5, higher is better), Iceland scores: political stability 1.3, rule of law 1.7, corruption control 1.9, and regulatory quality 1.6.
Can foreigners invest in Iceland?
Most industries in Iceland are open to foreign direct investment, though specific sectors may require a local partner, government approval, or special licensing. Consult a qualified local advisor for restrictions that apply to your sector.
What is foreign direct investment (FDI) like in Iceland?
Foreign Direct Investment in Iceland runs at 3.2% of GDP, while the trade openness ratio (exports + imports as a share of GDP) stands at 88%. These figures show how integrated Iceland is with the global economy and how welcoming it has been to international capital.
What is the public debt level in Iceland?
Iceland's government debt stands at 63% of GDP. This is within range for advanced economies but worth monitoring.