In Bloomberg Businessweek released an atricle today hailing Iceland as one of the safest countries to invest in according to a recent study done by the risk-management adviser Maplecroft.

The Icelandic Ministry of Industry, Energy and Tourism proposed a new bill of law that has recently been passed for investments in Iceland. The ‘Incentives for Initial Investment in Iceland’ bill is directed towards promoting initial investment in commercial operations, the competitiveness of Iceland and regional development by specifying what incentives are permitted in respect of new investments in Iceland and how they should be used.

According to the weather forecast ash might temporarily affect air travel to Keflavik international airport later today, May 8th. But there are four international airports in Iceland, and if one needs to close down, air traffic can be directed to the others. Passengers are asked to follow closely the websites listed below for latest information.

Iceland received flying marks in the Global Innovation Index 2009 - 10 published by INSEAD Business School and the Confederation of Indian Industries, topping the list of 132 countries.

Iceland ranks first among 163 countries in an Environmental Performance Index produced by environmental experts from Yale University and Columbia University. The Index was published on 28 January at the annual World Economic Forum in Davos, Switzerland. The Environmental Performance Index has been compiled every two years since its inception in 2006. According to the findings, Iceland’s top ranking derives from its high scores on environmental public health, controlling greenhouse gas emission, renewable energy production and reforestation. Other top performers include Switzerland, Costa Rica, Sweden, and Norway. EU countries also placed high in the rankings. More than 20 EU countries outranked the United States, which dropped to 61st place. The findings also reveal that income and economic conditions strongly influence country rankings. The bottom five countries include Togo, Angola, Mauritania, the Central African Republic and Sierra Leone - impoverished countries that lack basic environmental amenities and policy capacity. China and India rank 121st and 123rd respectively, a reflection on the strain rapid economic growth imposes on the environment. As a rule, income levels are a major determinant of environmental success. However, some countries achieve results that exceed what would be anticipated, demonstrating that policy choices also affect performance. For example, Chile, where substantial investments in environmental protection have been made, ranks 16th, while its neighbour, Argentina, which has done much less to improve its pollution control and natural resource management, lags in 70th place.

On January 5th, the President of Iceland decided to refer to a general referendum an amendment of the laws authorizing a state guarantee for the repayment of loans from the Governments of the United Kingdom and the Netherlands to the Depositors’ and Investors’ Guarantee Fund of Iceland. The content and consequences of this decision have in some cases been misinterpreted in the international press. The Ministry of Industry therefore wants to highlight the following facts.

The quality of Icelandic healthcare scores very high in OECD’s – Health at a Glance 2009. Be it treatment of coronary arrest or cerebral hemorrhage, or life expectancy of diagnosed breast cancer patients, Iceland rates top of the list.

Iceland joins the Netherlands on the top of the table, in a EUROSTAT survey, when it comes to household connections to the internet, where 90% of households are connected. As a whole connected European homes have increased from 60% to 65% in the course of one year.

The Central Bank of Iceland has taken the first step in the sequenced removal of the capital controls by permitting inflows of foreign currency for new investments and potential outflows of foreign currency that may derive from such investments in the future.

The Executive Board of the International Monetary Fund (IMF) today completed the first review of Iceland’s economic performance. The completion enables the process of $167.5 million loan to Iceland. The Ministry of Economic also announced that following the IMF completion an additional loan from the Nordic countries, amounting to $625 million, was expected.

Last Wednesday, Invest in Iceland Agency along with the Trade Council of Iceland and the Ministry of Industry, held a conference on Foreign Direct Investment into Iceland.

Iceland still maintains a strong position in the top 30 most competitive economies in the Global Competitiveness Report 09 – 10. Despite a nationalization of all major banks following a collapse in the countries financial sector Iceland still holds an incredible 26th spot. This is due to the fact that Iceland’s infrastructure is still solid and the economic foundations are sound. The report says that Iceland can rely on a world class education system, highly developed business environment, a flexible labor market, efficient infrastructure and strong institutions and that has secured the country a place in the top 30 in the face of a serious financial crisis.

A group of Norwegian investors, headed by Endre Røsjø, wants to make a 20 billion ISK long-term investment in the Icelandic economy. Røsjø has met with the Icelandic pension funds about creating an investment fund, where the pension funds would match the Norwegian contribution of 20 billion ISK.

Svein Harald Øygard, the former head of the Central Bank of Iceland is quoted to say that Iceland has the highest possibility for wealth creation in all of Europe.

Last night Althingi (Icelandic parliament) passed a legislative bill from the Minister of Business Affairs, amending the Foreign Exchange Act of 1992. This new Act authorizes the Central Bank, upon consultation with the Minister, to adopt rules restricting cross-border movement of capital.

In the midst of the economic turmoil affecting the globe it is important to not only look at the short term but to look further down the road. Even though the credit crunch has affect Iceland more severely than most western countries the long term economic outlook in Iceland is very positive. The untapped renewable energy sources, the highly advanced, comprehensive infrastructure and a young population with a high education level supports positive outlook for the future.

The Global Competitiveness Report 2008 – 2009 rates Iceland as the 20th most competitive economy in the world. Iceland jumps 3 places from the previous year overtaking both Ireland and Malaysia.

In a breakfast meeting this morning, held by Invest in Iceland Agency, Laurence Naraina a tax expert with PwC-Belgium, introduced his findings on the competitiveness of the Icelandic tax legislation regarding moveable investments.

On May 14th Althingi, the parliament of Iceland, passed a bill on participation exemption for domestic legal entities making corporations exempt from paying taxes on capital gain. This new legislation is yet another step toward making Iceland an ideal location for financial activity and coupled with a low corporate tax rate of 15% and a simple and transparent tax system it fortifies Iceland’s position as one of the world’s most competitive business environments.

The highly competitive fiscal system in Iceland is both simple and effective, and has been recognized as such by a number of international companies that have decided to relocate their business to Iceland in the past few years. The main attraction has of course been the low 18% flat tax rate levied on corporate net gain. But Iceland has become even more competitive.

The Invest in Iceland Agency has just published Doing Business in Iceland 2008, the sixth edition of the popular Doing Business in Iceland handbook.  A PDF file of Doing Business in Iceland can be down-loaded from our website www.invest.is/publications, and a hard copy will be available on February, 21st.

Last week PricewaterhouseCoopers in Belgium, released their study on incentives schemes applied in Europe and Canada. The study was initiated by the Invest in Iceland Agency both to emphasize the importance of incentives to attract foreign investors into remote areas and also to instigate dialog on how incentives could benefit foreign direct investment in Iceland in general.

Iceland has surpassed Norway as the best country to live in, according to the UNDP Development Index published on November, 27th.  Iceland edged out Norway because of new life expectancy estimates and updated figures for gross domestic product and is now considered the most desirable country to live in.

A recent study by Eurostat showed that Icelandic households have the highest internet access in the EEA. The study also revealed that more Icelandic homes have broadband connection than in the rest of Europe and Iceland tops the list for most internet activities carried out, e.g. use search engines or send e-mail with attachment.

In a board meeting last week Landsvirkjun (National Power Company) decided that they would focus their energy supplies towards less polluting, environmentally friendly industries, thus changing course from its predominantly aluminum focused strategy.