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Business Profile
Economy: Iceland is short of indigenous raw materials and thus relies heavily on foreign trade to keep its relatively successful economy ticking over. Exports of goods and services account for more than one-third of GNP. The largest proportion of these derives from fisheries and related products such as fishmeal and oil. The economy is thus particularly susceptible to fluctuating world prices in this commodity and maintains a broad fisheries exclusion zone (320km/200 miles) to protect its earnings. As several European governments (including the British) have discovered to their cost, the Icelanders are fiercely determined and quite capable of defending their perceived territorial rights. Other sources of revenue come from the sale of minerals such as aluminium, ferro-silicon, cement and nitrates used in fertilisers, although these have lately been affected by low demand. Light industry produces knitwear, blankets, textiles and paint. There is a burgeoning advanced technology sector involved in software and biotechnology, and an embryonic financial services industry.
Accession to the European Economic Area (an amalgam of the EU and the European Free Trade Association; Iceland belongs to the latter) effected a wholesale liberalisation of trade among the member states and caused some disruption to the Icelandic economy. This highlighted the fact that Iceland’s economy is too dependent on its fishing industry and needs to diversify in areas that will allow it to compete in international markets. Iceland’s principal import suppliers are, in order of importance, Norway, Germany and the UK. The UK, the USA and Germany are the country’s main export.
Business: Businesspeople are expected to dress smartly. Local businesspeople are conservative but very friendly and most speak English. Previous appointments are not generally necessary, but visits between May and September should be planned in advance as many local businesspeople travel abroad at this time. The telephone directory is listed by Christian name. Office hours: Mon-Fri 0800-1600 (summer) and 0900-1700 (winter). Most offices are closed Saturday. Some firms close down completely for an annual three-week holiday; this is usually in July.
Commercial Information: The following organisation can offer advice: Iceland Chamber of Commerce Kringlan 7, 103 Reykjavík (tel: 510 7100; fax: 568 6564; e-mail: mottaka@chamber.is; website: www.chamber.is).
Conferences/Conventions: There are several large hotels in Reykjavík equipped for conferences and business meetings, while smaller conferences may be held at venues outside the capital. For further information, contact the Iceland Convention and Incentive Bureau, Laekjargata 3, 101 Reykjavík (tel: 562 6070; fax: 562 6073; e-mail: icib@centrum.is; website: www.icelandconvention.com).
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