Norway

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Business culture is open and informal

There is a strong trade relationship between Norway and the United States. In 2003, Norway imported $2.77 billion in American products — making it the leading importer of American goods in Northern Europe. Among these products were aircraft, data processing, consumer goods and machinery and equipment including defense-related items. The US purchased $5.21 billion in Norwegian products, making it second only to Sweden in exported goods from Northern Europe. These included crude oil and refined products, metals, chemicals and fish.

Strong economy

There are excellent opportunities to sell products in Norway. Norwegians are among the world’s wealthiest consumers, with per capita GDP of approximately $40,000. This is about the same as GDP per capita in the US and the highest in Northern Europe. This wealth is evenly distributed among the population making all Norwegians potential customers. Furthermore, the GDP growth rate increased to 3.3% in 2004. This, together with by low inflation and low unemployment rates, represents an economy that is strong and on the rise. In addition, interest rates are expected to rise in the coming year, further, strengthening the Norwegian currency, the krone (NOK).

The petroleum sector

The petroleum sector, perhaps the most tantalising US investment target, is Norway’s largest single industry. In 2003, the petroleum sector accounted for about 20% of the Norwegian GDP. This is nearly three times the value generation of other Norwegian industry. About 24% of the revenues of the Norwegian state came from the petroleum sector. About 75,000 people are directly employed in the sector, representing 3% of the Norwegian workforce. About 60,000 of these are employed in the supply industry. Indirectly, it is estimated that the petroleum sector contributes about 220,000 jobs throughout Norway.

Norway is the world’s third-largest exporter of crude oil and the sixth-largest oil producer, exporting 90% of this production. Including energy, Norway’s industrial sectors are a great deal larger than comparably sized countries. Industries such as oil and gas equipment and services, telecommunications equipment and services, information technology, medical equipment and services, and travel and tourism present great market opportunity for US companies. Drilling and well completion technology continue to be a potential subsector for US suppliers. The deeper, more extreme northern waters prove to be a challenge for Norwegian drilling and proven technology is continuously being sought after to overcome these areas. There is also an increased focus on new and advanced environmental technologies.

Business culture

Norway’s high quality of life should also be an investment consideration. There is a large population of educated people with high amounts of disposable income coupled with excellent foreign language skills. English is the most utilised second language. Corporate culture is often open and informal and English can be found in many companies as the primary language. There is an emphasis on business ethics, leading society to be safe and well-functioning with little corruption and a high level of public services.

Facts in brief

Oil is an attractive investment prospect

Norway’s location is Northern Europe, bordering the North Sea and the North Atlantic Ocean, west of Sweden

Its climate is temperate along coast, modified by North Atlantic Current; colder interior with increased precipitation and colder summers; rainy year-round on west coast

Natural resources include petroleum, natural gas, iron ore, copper, lead, zinc, titanium, pyrites, nickel, fish, timber, hydropower

Agricultural products are barley, wheat, potatoes, pork, beef, veal, milk, fish

Industries include petroleum and gas, food processing, shipbuilding, pulp and paper products, metals, chemicals, timber, mining, textiles, fishing

Norway’s legal system is a mixture of customary law, civil law system, and common law traditions; Supreme Court renders advisory opinions to legislature when asked; accepts compulsory ICJ jurisdiction, with reservations

Diplomatic representation in the US — Chief of Mission: Ambassador Knut Vollebaek

Diplomatic representation from the US — Chief of Mission: Ambassador Ben K Whitney

Contact Information

American Chamber of Commerce in Norway
PO Box 2604 Solli,
Drammensveien 20C
0203 Oslo
Norway
Tel: +47 2254 6040
E-mail: amcham@amcham.no
Website: www.amcham.no

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