The Faroe Islands

Geographical Location

Situated half between Scotland and Iceland in the North Atlantic Ocean, the Faroe Islands are an archipelago of 18 islands with a total land area of approximately 1.400 km², a sea area of 274,000 km² and a population of a little over 48.000. The Faroe Islands have a well developed infrastructure with a road net of 960 km and easy access to most of the islands. The capital of the Faroe Islands is Tórshavn with close to 16.000 inhabitants.

The Language

Both Faroese and Danish are official languages on the Faroe Islands. The Faroese language is a Germanic language originating from Old Norse. The language is closely related to the Icelandic language and some Norwegian dialects. As one of the most important aspects of the Faroese cultural identity, the Faroese people are conscious as to preserving the language, keeping it vital and resilient to global influences.

Additionally, all Faroese speak Danish fluently. English is spoken widely as are some of the other major European languages such as German, Spanish and French.

Government

Being part of the Kingdom of Denmark, the Faroe Islands are a self-governing region under The Home Rule Act of 1948, giving the Faroese Parliament, one of the oldest in Europe, the authority to govern a wide range of areas including the conservation and management of living marine resources within the 200 nautical mile fisheries zone, sub-surface resources, trade, fiscal, industrial and environmental policies, transportation, communication, culture, education and research.  

The Faroese parliament, Løgtingið, comprises 33 elected members. Although Denmark is a member of the European Union (EU) and the EEA, the Faroe Islands are not a member of neither. Consequently, Faroese trade relations are governed by special bilateral agreements. In 2006, the Faroe Islands entered into a free trade agreement with Iceland.

In 2008, the Faroe Islands received a first time Aa2 rating from Moody´s Investor Service.

Policy and Politics

In recent years, the debate over the future status of the Faroe Islands in relation to Denmark has dominated the Faroese political agenda.

In connection with Danish parliamentary elections, the Faroese people elect two local representatives to the Danish Parliament.

For further information on the parliamentary structure and on issues of political interest please visit www.logting.fo

The Faroe Islands
have their own
flag: Merkið 

Business and Industry

For many decades, fishery has been the main industry on the Faroe Islands. Fishery products, including those of fish farming, are representing over 95 percent of total Faroese export and approximately half of the Faroese GDP. Consequently, the Faroese industries and business community is to a great extent influenced by fishing, fish processing and fishery related products.

For the last decades, the Faroese economy has worked towards developing more diversified and competitive industries. This is gradually becoming a success and when it comes to e.g. aquaculture, the Faroe Islands are becoming one of the large salmon producing countries of the world. Furthermore, several new non-fish related industries have emerged over the past decade to mention a few airline, tourism, catering, textiles, oil supply, upstream oil companies, telecommunication & IT, electronics and international banking.

Oil Industry

In the 1980s and early 1990s major oil developments took place west of the British Isles towards the continental shelf boundary between Britain and the Faroe Islands. In August 2000, the Faroese Government granted 7 licenses to a number of major international oil companies. The license conditions require that participating international oil companies co-operate actively with Faroese industry, the purpose being to increase deliverance competence of goods and services to the petroleum activities on a competitive level.

In case the discovery turns into a commercial production, the approaching prospect of a possible impending oil industry is a major challenge to the Faroese society, when considering the substantial activity increase. The long-term objective of the Faroese business community, is to deliver services to the oil industry on a high intellectual and technological level. To help strengthening the position of the industry for future local and global challenges, the participation of the Faroese trade and industry must be competitive and professional with regard to products and services.

Other industries prevalent on the Faroe Islands are product and services for fishing and fish processing industry, product and services for the fish farming industry, shipyards, mechanical workshops etc., and information technology.