Ministers Debate Sale of Land to Chinese Investor Skip to content

Ministers Debate Sale of Land to Chinese Investor

arnipallarnason-radhMinister of Economic Affairs Árni Páll Árnason (pictured) said he favors the acquisition of the piece of land Grímsstadir á Fjöllum in northeast Iceland by Zhongkun Group, owned by Chinese investor Huang Nubo, in his report on the matter.

His report will, among other documentation, form a basis for Minister of the Interior Ögmundur Jónasson’s decision on whether the acquisition should go through by legal exemption, reports.

Árnason reasoned that it is important to attract foreign investments in new industries—Huang has stated that he intends to develop tourism in the area—and thus reduce the risk posed to the Icelandic economy through foreign debts.

The minister concluded that the Icelandic economy is in no way threatened by Huang’s acquisition; on the contrary, it coincides with the government’s policy that foreign investment is to bring forth new opportunities and increase versatility in the national economy.

Minister of Finance Steingrímur J. Sigfússon, on the other hand, declared at the Icelandic parliament, Althingi, yesterday that he is not particularly excited about the idea that outside parties and foreigners buy up large chunks of Icelandic land.

Sigfússon added that the matter’s evaluation is taking the natural course, calling for all of the acquisition’s aspects to be looked into, reports.

The final decision on the matter lies in the hands of Jónasson. He said at Althingi on Tuesday that he would decide as soon as possible but wouldn’t mention a timeframe.

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