Estonia promotes foreign direct investment through agencies like Enterprise Estonia and the Estonian Investment and Trade Agency. Estonia offers a number of benefits for foreign investors, including a stable business environment, low costs, a highly skilled workforce, and being located close to other European markets. Estonia has successfully attracted foreign investment through developing its infrastructure and business-friendly policies rather than subsidies. The ICT, transportation, manufacturing, and financial sectors represent key opportunities for investment.

1. Estonia –
FDI Promotion Practices
Enterprise Estonia, Kyiv office
Denis Priimägi
IX Lviv International Economic Forum
Ostober 01-02, 2009

2. Estonia
Estonia is home to a small nationality and a
slightly larger nation. On the world map it is
an almost imperceptible slice of Nordic sea.

3. (Map & location)

4. Why invest in Estonia?
• A unique location and culture combining Nordic
roots and Eastern influences.
• A highly progressive environment that offers an
efficient way of doing business.
• Highly developed infrastructure that supports
business development.
• Among the most successful countries in the
world in attracting inward investment.

5. Estonian Investment
and Trade Agency

6. At a glance
• EITA is organized as a division within
Enterprise Estonia.
• Our responsibilities include imagebuilding,
investment promotion, trade development
and global network management.
• We participate in economic policy
development.

7. History of EITA
1994-2003 investment promotion
agencies in different forms
2000 – merger with Enterprise Estonia
2003 – Enterprise division
2007 – Investment and Trade Development division
2009 – Estonian Investment and Trade Agency

8. EITA today
• 2009 budget of about 4.5 MEUR
• 20 employees, 5 teams:
– Business development, Marketing,
Services, Export, Information and
research
• 11 offices, 10 countries
• A global network of partners and
service providers

9. Services • General information inquiries
• Investment tours of Estonia
• Detailed investment proposals
• Identifying suitable properties
• Organizing recruitment
• Advice on financing
• Negotiations with authorities
• Sourcing

10. Offices
• Tallinn, Estonia • Kiev, Ukraine
• Helsinki, Finland • Tokyo, Japan
• Stockholm, Sweden • Shanghai, China
• London, UK • Moscow, Russia
• Hamburg, Germany • St. Petersburg, Russia
• Silicon Valley, USA

11. Enterprise Estonia

12. At a glance
• Established in 2000.
• One of the largest institutions within the
national support system.
• Provides assistance, advisory,
cooperation opportunities, and training
for entrepreneurs, research
establishments, public and third sector.

13. Formation of Foreign Investments
Agency Export Agency
Estonian Investment
Enterprise
and Trade Development
Foundation
Estonia
Estonian
Infrastructure and
Transit Development
Foundation
Tourist Agency
Tourist Board
Technology Agency
Estonian Innovation Fund
Regional
Development Agency
Estonian Regional
Development Foundation

14. Enterprise Estonia today
• A total of about 300 employees.
• 2009 budget about 5 billion EEK
• (320 MEUR).
• Regional offices in Jõhvi and Tartu.
• A network in each Estonian county:
county development centers and tourist
information centers.

15. Estonian business support system
• Enterprise Estonia
• Estonian Development Fund
• Kredex
• Environmental Investment Center
• Rural Development Foundation
• Agricultural Registers and Information Board

16. Business
environment
We are at the heart of the Baltic
Sea Region –the Europe’s fastest
growing market

17. Key benefits
• Stability
• Closeness
• Ease of doing business
• Low cost of doing business
• Country of foreign investors

18. Stability
• Estonia has a very stable economic environment.
• Member of EU and NATO since 2004.
• One of the lowest government debts in Europe
• Rapid economic growth during the last 10 years.
• Considerable accumulated fiscal reserves.

19. Closeness
• Estonia is both socially and logistically accessible.
• Communications technology makes distances insignificant.
• Front runner in applying modern IT solutions for everyday life.
• Within three hours flight of major European capitals.

20. Ease of doing business
• Estonia is 18th in the World Bank Group’s
Ease of Doing Business index.
• Business life is oriented to the west.
• Business regulation is less rigid than in the
Nordic countries.
• Culture has very strong work ethics.
• Estonian have good knowledge of English
and Russian.

21. Low cost of doing business
• Cost level in Estonia is still below EU average.
• Taxes are low and simple.
• No corporate tax on reinvested profits.
• Labor costs are a third of those in Sweden or Finland.

22. Country of foreign
investors
• Estonia is one of the most successful countries in
Europe in attracting FDI.
• Foreign investors play a decisive role in the growing
Estonian economy.
• Attracting FDI is based on creating a favorable
business environment instead of creating special
support schemes.

23. Key sectors
• ICT
• Transport and logistics
services
• Business and financial
services
• Industrial machinery and
metalworking
• Electronics

24. Credit ratings
• Standard & Poor: A
(never downgraded)
• Moody’s: A1
(never downgraded)
• Fitch IBCA: BBB+
(revised in 2009)

25. Rankings
• 12th in Index of Economic Freedom 2007
(Wall Street Journal)
• 22nd in the Ease of Doing Business Report 2008
(World Bank)
• 27th in Global Competitiveness Report 2007/8
(World Economic Forum)
• 27th in the Corruption Perceptions Index 2008
(Transparency International)

26. Cornerstones of economic success
• Monetary reform
Currency board arrangement since 1992.
• Privatization
Completed, with 4 infrastructure companies in
state ownership.
• Liberal foreign trade regime
Market is open for all competition.
• Modern tax system
Flat income tax with 0% on reinvested profits.

27. e-Services (examples)
• ID card • e-Customs
• Citizen’s Portal • e-Health
• m-Parking • e-Police
• e-Elections • Paying by mobile
• e-Schools phone
• e-Tax board • Internet banking

28. e-Government
• Estonian cabinet meetings have been changed to
paperless sessions using a web-based system.
• Government expenditures can be followed on the
internet in real time.
• The Estonian e-Governance Academy has trained
over 500 participants from 36 countries.

29. Estonian Investment and Trade Agency
www.investinestonia.com
www.tradewithestonia.com
Estonian Tourism Board
www.visitestonia.com
Enterprise Estonia
www.eas.ee
THANK YOU!