Creating open economy

The primary goal for the development of Riga, the capital of the Republic of Latvia, is to be an economically vibrant, modern and dynamic city, maintaining its natural and cultural heritage. Together with the Latvian government, Riga is attempting to create an open Western-style economy that complies with the standards of the European Community.

Given the swift economic development in Riga, there is also an increasing amount of investment. Between the year 2000 and the beginning of 2004 the total non-financial investment in Riga has increased almost 1.5 times. In the beginning of 2004, the total value of non-financial investment in Riga reached 743 million Lats, which is approximately one half of the total investment in the country. Construction works in the City have risen 5 times during this period, reaching 187 million Lats. This is ca. one third of all construction works in the country.

Rapid increase of private and foreign investment in the economy of the city and the housing infrastructure raises also a demand for investment into the public transportation and social infrastructure sectors. Here traditionally main investors were the state and the municipality. As the investment attraction to foster the development of these sectors, e.g. by utilizing public private partnership and concession mechanisms for the financing of infrastructure projects, was not yet popular enough during the previous years, the main investment source for the above mentioned sectors was Riga Municipality budget. The foreign direct investments into the equity capital of enterprises registered in Riga reached 993.6 million Lats by the end of 2004.

The main part of foreign investment (ca.150 million Lats or 15.3%) in Riga enterprises has been performed by investors from the US, Sweden (number two with 112 million Lats or 12.3%), and Denmark (number three with 97 million Lats or 9.9%).

Riga is also the largest centre of culture, education and science in Latvia. This is evident from the large number of cultural events, international exhibitions, scientific conferences and seminars that take place in Riga every year. For detailed information please visit our home page www.riga.lv.