Greenland Moves to Introduce National Rules on Foreign Investments Amid Global Regulatory Updates

Strengthening Control Over Critical Infrastructure

Greenland is set to introduce national rules on screening foreign investments as part of its efforts to strengthen control over critical infrastructure. This move comes as the country’s government presents its foreign, security and defence policy strategy for 2024-2033, which highlights the need for increased ownership and control of critical infrastructure.

Preventing Foreign Ownership and Control

According to the strategy, Greenland aims to prevent foreign operators from owning and controlling its critical infrastructure. This echoes similar measures implemented by other countries, with the goal of ensuring that the country’s basic infrastructure remains under local ownership and control.

Denmark Amends Investment Screening Act

Strengthening National Security Interests

Denmark has also announced plans to amend its Investment Screening Act, which aims to increase control over critical technology and infrastructure. The amendments are part of a broader effort to strengthen national security interests and assess foreign investments more comprehensively.

Expanded Scope of the Act

The Danish government is seeking to expand the scope of the Act to include public tenders and collaborative research related to critical technology and infrastructure. However, the proposed bill has yet to be sent out for consultation, casting doubt over its expected February introduction.

Evaluation of Denmark’s Investment Screening Act

Assessing Effectiveness and Impact

Denmark’s Investment Screening Act is set to undergo an evaluation in 2024, which will assess the effectiveness of the legislation since its implementation in 2021. The evaluation is expected to provide insight into the Act’s impact on investment flows and identify potential areas for improvement or clarification.

Implications for Investors

Staying Informed About Regulatory Updates

Kromann Reumert, a leading law firm, has been closely monitoring these developments and is well-positioned to advise clients on potential investments in Greenland. As global regulatory landscapes continue to evolve, companies looking to invest in the region would do well to stay informed about these changes.

Understanding Implications for Businesses

Greenland’s move to introduce national rules on foreign investments marks an important step towards increasing control over its critical infrastructure. As Denmark and other countries also refine their regulations, it is essential for investors to understand the implications of these updates for their businesses.

By staying informed and adapting to changing regulatory environments, investors can position themselves for success in this evolving landscape.