In 2024, the Investment and Development Agency of Latvia (LIAA) facilitated 45 investment projects with a total value of €655.4 million, creating an estimated 2,023 new jobs. The most significant projects this year focused on high-value-added manufacturing, information and communication technology (ICT), energy, and aviation industries.
"This has been a challenging year due to the geopolitical situation and the slow growth of our key external economic partners. However, despite these challenges, the volume of investments attracted is 6% higher than last year. This year, we reorganized LIAA and tripled the number of staff dedicated to investment attraction. Looking ahead, we aim to increase annual investment volumes to €1 billion within five years," stated Laura Štrovalde, Deputy Director of LIAA. She added that LIAA's current investment portfolio includes 166 projects with a total value of €10.8 billion.
Climate change has shifted investor priorities toward green projects, including renewable energy, circular economy initiatives, and sustainable production. This aligns with LIAA's focus on knowledge-intensive sectors with broad economic impact. "We are open to working with any significant investment projects but will proactively prioritize sectors that contribute the most to economic growth, such as energy. Affordable green energy is essential for developing manufacturing and other industries, especially in light of EU and global emission reduction targets," explained Ms. Štrovalde.
Key Investment Projects
Several significant projects were implemented in 2024:
Asns Ingredient began constructing a pea protein isolate plant in Jelgava, with planned investments totalling €114 million.
Golden Fields Factory LV opened a protein production facility in Liepāja, investing €16 million to process 50,000 tonnes of pulses annually.
Tech Mahindra, a global technology company, established a representative office in Riga, creating 500 new jobs.
Norse Atlantic Airways, operating flights between Europe and the US, announced plans to open a business services centre in Riga and explore additional development opportunities.
LIAA's Global Reach and Future Goals
Some projects were secured through LIAA's economic representations abroad. LIAA currently maintains offices in 20 countries and plans to enhance its focus on investment results. Key target markets for investment attraction include Norway, Germany, Sweden, and the USA, each with two representatives. Additionally, new offices are planned for Spain and Indonesia in 2025. These decisions are informed by consultations with business organizations and analysis of Latvia's foreign trade trends.
The coming year looks promising for investment attraction. As tariff wars between significant powers continue, Latvia is positioned to attract manufacturers who are hesitant to expand into Asia due to increasing risks. In the US, companies looking to grow in Europe also present opportunities. Furthermore, municipalities are developing industrial parks to foster inward investment. Overall, 2025 is expected to bring moderate economic growth to Latvia, sending positive signals to investors.
Focus on Large-Scale Projects
"This year, we worked on several large-scale projects, including the biorefinery Fibenol in Valmiera and the Elwind offshore wind farm. Other notable ventures include the Fokker Next Gen hydrogen-powered aircraft project. To manage these efforts, we plan to divide our team's focus: some specialists will proactively seek new clients, while others will concentrate on supporting ongoing projects and companies already operating in Latvia. Currently, 60-70% of investments come from businesses already established in Latvia," noted Ms. Štrovalde.
Geographic and Sectoral Distribution of Projects
Of the 45 projects implemented in 2024:
- 21 are located in Riga,
- 3 in Riga Region,
- 12 in Kurzeme,
- 4 in Latgale,
- 3 in Vidzeme,
- 2 in Zemgale.
Key sectors represented include:
- ICT (11 projects),
- Bioeconomy (9 projects),
- Smart energy (7 projects),
- Photonics and smart materials (7 projects),
- Biomedicine (2 projects),
- Other sectors (9 projects).
LIAA aims to attract €1 billion in investments between 2023 and 2025, creating 7,500 new jobs. For 2025, the agency has set a foreign investment target of €790 million, underscoring its commitment to driving sustainable economic growth in Latvia.