Norway has a strong, transparent and well-regulated financial system. It includes hundreds of financial institutions, such as banks, insurance companies, and investment firms. Many foreign banks and financial services also operate in Norway.
Norway is also known for its well-developed insurance industry, especially in areas like:
- real estate
- marine and shipping
- transportation
Norway has a venture capital and private equity market, a Norwegian Venture Capital & Private Equity Assocation (NVCA), as well as incubators and accelerators to help new businesses grow.
Most Norwegian investment funds focus on projects within Norway, the Nordic region and Europe. A smaller number of funds invest globally.
One of the most notable parts of Norway’s financial system is it`s Sovereign Wealth Fund (officially the Government Pension Fund Global). Valued at over NOK 20 trillion (about CAD 3.5 trillion), it is one of the largest investment funds in the world. The fund is owned by the Norwegian state, managed by the Ministry of Finance, and administered by Norway’s central banking system.
About 3% of the fund’s investments are in Canada, mainly through equities and fixed-income products. It acts primarily as a fund of funds, meaning it does not invest in individual companies directly through these methods.
In 2019, NBIM announced its Renewable energy infrastructure fund. This invests in unlisted renewable energy assets with trusted partners and large values only. For example, individual investments range from around EUR 330 million to EUR 1.4 billion (CAD 530 million to CAD 2.5 billion) for less than a 50% stake in each investment project.