A Guide to Business Travel in Iceland

Björk, fjords, northern lights and geothermal pools are perhaps some of your first associations when you think of Iceland. But the island nation in the North Atlantic is also known for its booming economy, its steadily growing tourism sector and the fact that it is one of the most peaceful countries according to the Global Peace Index.

The tourism sector may have been instrumental in strengthening the Icelandic economy in recent years, but there are other strong economic sectors for which the country is known, such as the fishing industry. Iceland is one of the top 20 fishing nations in the world and accounts for 1.2 per cent of the world's total fish catch. In addition to hotels, airlines and shipping companies, fishing companies are among the most successful businesses operating on Icelandic soil.

Well-developed domestic industries have contributed to Iceland's high position in various world rankings, as have well-tailored policies aimed at social and economic equity. According to the World Economic Forum, Iceland ranks first in the Global Gender Gap Report. For example, there is a national policy that does not allow men to receive higher salaries than women. Iceland has also committed to eliminating the gender pay gap by 2022. The 99 per cent employment rate on the island only adds to the overall picture of success.

So if the reason for your visit is not the scenic beauty of the country, but the pursuit of business interests in Iceland, this may indeed be a worthwhile opportunity for you.

Of course, similar manners apply in Icelandic business life as in other European countries. Nevertheless, there are some aspects that distinguish Icelandic business life from other countries. So if you are planning a business trip or are just curious to explore your options, here are some things you might encounter or experience.

Small But Strong

Corporations and companies in Iceland may seem somewhat smaller than their counterparts overseas. But at the same time, these are the biggest economic players thriving in Iceland. Even though companies are generally smaller, this does not detract from the importance of meetings. From the most important decision-making meetings to more trivial matters, business is discussed in the usual global way.

It is not necessary to be formally dressed for your business trip in Iceland - Icelanders are sociable people who function somewhat differently than you may experience in corporate settings such as the United States per se. In terms of communication, people are friendly and talkative, but will often get a message across without beating around the bush. You will not face language difficulties and barriers. Everyone speaks fluent English.

Translation of contracts

When you do business with a person from Iceland, most of your communication will be done in English very quickly. However, the contracts and any legal documents you need to take care of should only be translated into the local language. This can be crucial for building a stable relationship with your Icelandic partners, as you can also demonstrate your respect for the country, the language and the culture. And you might even learn the language of the country in the process!

Strategic location

Iceland prides itself on its privileged location in the centre of the world, just three hours by plane from mainland Europe and five hours from the east coast of North America. This status has been achieved in the past by pursuing great business opportunities, as in the case of the domestic airline Loftleiðir, which at the time was the first airline in the world to offer favourable transatlantic fares to its passengers.

Some of the company’s first international flights were to Copenhagen and New York City in the late 1940s. Two decades later, flying on this small plane became a rite of passage for many young Americans travelling to Europe for university, including the Clintons.

In 1986, former US President Ronald Reagan met with the General Secretary of the Communist Party of the Soviet Union, Mikhail Gorbachev, in Iceland. The meeting took place to negotiate and agree on the Arms Control Act.

It was a similar story in business — Iceland gradually became a focal point for companies from the USA and Europe, and sooner rather than later ‘Meet in Reykjavik’ was transformed into ‘Meet in the Middle’ The country is practically halfway between the two continents.

A business trip to Iceland would be an opportunity to experience the business culture of the island state. The fact that Iceland keeps its economic sectors in good shape shows and illustrates that a country does not necessarily have to be a superpower to be considered successful. Instead, a country that utilises its resources strategically and positions itself successfully in the business world speaks for itself.