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A diversifying economy

 

Even though fishery is by far the largest contributor to the Faroese GDP, the Faroese economy is becoming increasingly diversified.

During the past decade, there has been a shift towards a more market-oriented economic policy in the Faroe Islands. Production related to construction, transportation, banking, and other financial services has grown in output value and Faroese companies have become more willing to exploit investment opportunities abroad. 

A revision of the banking law that enables Faroese financial institutions to participate in the international capital markets under the same conditions as financial institutions in Denmark has opened up for more international involvement by Faroese banks and financial institutions.

The Faroese Securities Market (VMF) was established in 2000 and today lists Faroese securities as part of the OMX Nordic Exchange and in close collaboration with the OMX Nordic Exchange Iceland.

New industries have developed relating to offshore activities and energy, oil & gas exploration. Information and communication technology, research and development are other areas, which have made cutting-edge advancement during the last couple of years. 

The creative industries have led the way in establishing professional industries with an international outlook. In the educational area, efforts are being made to advance upper-secondary and higher education. As for tourism, efforts have been made to develop targeted long-term strategies to advance the tourism industry in the Faroes.

Renewable energy and greentech are other areas that have vast growth potential in the Faroes. The Faroese government as well as business environment have acknowledged the importance of implementing new, innovative mind-sets in the way business is done in the Faroes: Especially within fishery and the maritime industries.

For further information about the Faroese economy, consult the website of the Ministry of Finance.

For general information about the Faroe Islands, please see the booklet Faroe Islands in figures 2013 published by Statistics Faroe Islands.