1. ICELAND – THE STRATEGIC CHOICE Thordur Hilmarsson

2. Iceland is Competitive Competitiveness: 1st in Europe, 4th Worldwide Economic Freedom: 5th Worldwide Low Corruption: 1st Worldwide Global Creativity Index: 7th Worldwide Quality of Life: 3rd Worldwide

3. FDI in Iceland – by sector USD - millions

4. Iceland´s potentials for investment World Investment Report 2005: Actual Performance Investment Index: Iceland #76 Potential Performance Investment Index: Iceland #14

5. Why invest in Iceland? Compact society – minimum red tape Competive tax legislation Expanding finance sector Strategic location Renewable energy sources Political stability Advanced infrastructure Educated population Safe society

6. Small is beautifulSmall is efficient

7. Attractive Business Environment Low corporate taxes 18% %

8. Strategic Location Europe: 2-3 hours USA: 5-8 hours Europe: 3 days USA: 7 days

9. Natural resources Hydropower Geothermal Energy

10. European / UK - Icelandic Relations %

11. Political Stability - Efficiency

12. Iceland as a future international financial centre

13. Safe and Family Friendly Society

14. Relatively high labour cost Small working population (165.000) in real terms. Currency fluctuations High living cost Minimum red tape – transparent society No corruption Low corporate taxes Bridge between Europe and USA Political stability Advanced infrastructure Young and well educated nation Safe society - low criminal rate Competitive specialist prices International accounting rules European legal framework Entrepreneurial spirit Strengths and Weaknesses

15. Knowledge based industries Software, high tech, biotechnology Power intensive industries - if relatively environmentally friendly What kind of investment / operation? Financial service companies, equity funds and holding companies

16. The Invest in Iceland Agency... at your service Borgartun 35 105 Reykjavik ICELAND www.invest.is