On 1 December 2023, the Swedish Foreign Direct Investment Review Act (Sw. lag (2023:560) om granskning av utländska direktinvesteringar) (the “FDI Act”) entered into force, introducing a general screening system for foreign direct investments in Sweden.
The purpose of the FDI Act is to protect foreign investment activities that may have a harmful impact on Sweden’s national security. The FDI Act introduces a screening mechanism to ensure that investments in strategic Swedish companies do not pose a threat to national security, public order, or public safety. In particular, the FDI Act establishes certain direct or indirect investments in Swedish companies that carry out “protected activities” (Sw. skyddsvärd verksamhet) must be notified to and approved by the Inspectorate of Strategic Products (Sw. Inspektionen för strategiska producter) (“ISP”) before implementation.
This country note covers the key aspects of the law.