Iceland is an island of 103,000 km2 (39,756 sq.miles), about one-third larger than Scotland or Ireland. Situated on the Mid-Atlantic Ridge, Iceland is a hot spot of volcanic and geothermal activity: 30 post-glacial volcanoes have erupted in the past two centuries, and natural hot water supplies much of the population with heap, pollution-free heating. Rivers, too, are harnessed to provide inexpensive hydroelectric power. After strong economic growth in the five years to 2008, Iceland’s banks went wild, buying up huge amounts of assets. The population followed suit. While the story of the banks going bust is well known, unlike bust banks almost everywhere else in the world, the Icelandic ones didn’t get bailed out. Instead, Iceland only protected domestic depositors.
Iceland is a unique destination that offers pristine nature, breathtaking landscapes, a vibrant culture and good business case studies. Ratings agency Fitch has recently praised Iceland’s post crisis consolidation as “robust”. It thinks that the headline deficit should turn into a surplus by 2014. A positive business environment, abundance of competitively priced renewable energy, solid infrastructure, skilled workforce, minimum red tape and a range of incentives for new direct investments make Iceland an attractive location for a range of businesses.