Foreign direct investments

Authors:

  • Magnus Petersson
  • Maria Ädel
  • Tomas Malmlöf
  • Oscar Almén
  • Carl Denward
  • Erika Holmquist

Publish date: 2020-12-01

Report number: FOI-R--5069--SE

Pages: 92

Written in: Swedish

Keywords:

  • direct investment
  • risk
  • protection
  • security
  • China
  • Russia
  • Iran

Abstract

This report describes risks with foreign direct investment (FDI), maps areas where FDI can have negative consequences for Swedish security, and suggests general features of investors that can be a security risk in connection to an investment. The report claims that there are risks with FDI: risks for decreased external and internal security, risks for damage of nationally important sectors, and risks for damage to the Swedish economy. Furthermore, different agencies' definitions are used in the discussion of sensitive areas, and hence where certain types of FDI may have negative consequences for Swedish security. Statistics show that FDI in Sweden is dominated by the finance and insurance company sector, and the petroleum sector (including chemical products and medicine). Statistics also show that Europe is dominating FDI in Sweden, and that Asian FDI has increased in recent years. Finally, the report claims that some investors can be a security risk in connection to an investment, depending on nationality, acquirer- and owner-related parameters, and operations in the same sector, democracy and respect for human rights, and antagonism towards Sweden or its close partners. Case studies are made of China, Russia, and Iran.