Competition and EU Law | Update on coming changes to Norwegian FDI rules and regimes

The Minister of Trade, Industry and Fisheries has confirmed that a consultation paper with a proposal for a new Investment Control Act will be published during spring 2026. If adopted, the Act would establish a generally applicable FDI regime in Norway, aligned with the EU's revised FDI Regulation, creating a second Norwegian investment control framework alongside the existing regime under the Norwegian Security Act. Separately, amendments to the Security Act adopted in 2023 are not yet in force, with timing remaining uncertain.

New Investment Control Act – Consultation paper Expected Spring 2026

The government has been working on a proposal for an Investment Control Act. With the Minister’s recent confirmation that a consultation paper is expected during spring 2026, Norway moves closer to establishing a sector-based FDI regime similar to those in neighbouring Scandinavian countries. Work on the new Act is led by the Ministry of Trade, Industry and Fisheries.

While the scope of the existing Security Act regime is based on inclusion by individual decision – or, under coming amendments, partaking in security-graded procurement – the new regime will apply to companies active in certain sectors of business, representing a fundamentally different approach to investment screening.

Expected alignment with EU regime

It appears from the Minister’s recent comments that the EU’s revised FDI Regulation will not be incorporated into the EEA Agreement, as the European Commission considers it to fall outside its scope. Nevertheless, the Minister has indicated that Norway seeks to align closely with the EU’s revised Regulation when developing the Norwegian Investment Control Act. While details of the Norwegian regime are not yet known, significant deviations from the EU regime thus appear unlikely. The Norwegian Act may therefore potentially align with the EU Regulation on the scope of activities covered, processing deadlines, and material thresholds for blocking investments. The EU’s revised FDI Regulation is expected to include minimum scope requirements covering dual-use items, critical technologies (including AI, quantum and semiconductors), critical raw materials, and critical infrastructure in energy, transport and digital sectors.

The EU Regulation not being incorporated into the EEA Agreement will have certain practical implications:

Norway outside EU cooperation mechanisms: Even if Norway substantively aligns its Investment Control Act with the EU Regulation, Norway would not be formally included in the Regulation’s cooperation mechanisms between EU member states and the European Commission. Cooperation mechanisms could potentially be established by separate agreement.
Norwegian investors potentially treated as “foreign” in the EU: The EU Regulation will require screening mechanisms for “foreign” investment, defined as non-EU based investment. This means Norwegian-based investors may face filing requirements in EU member states where EU-based investors do not, creating additional administrative burdens for Norwegian businesses investing in the EU. Individual member states have previously included adaptions to exclude Norway as a “foreign” investor, e.g. in the voluntary Danish FDI regime.

Timeline

The EU’s revised FDI Regulation is expected to be formally adopted in 2026 and apply 18 months thereafter (towards the end of 2027 or early 2028). The timeline for the Norwegian Investment Control Act is less certain. After publishing the consultation paper during spring 2026, the government will review responses from the public consultation before it would submit a formal legislative proposal to Parliament.

Entry into Force of Amendments to the Security Act – Timeline Remains Unclear

Whilst work is ongoing with a new investment control regime in Norway, we are still awaiting entry into force of amendments to the existing investment control regime under the Security Act. As we have previously reported, the amendments will significantly expand the scope and lower the thresholds under the regime.

The amendments were adopted by Parliament in June 2023, and a draft Regulation was published in the second quarter of 2025. However, the Ministry of Justice has not provided any timeline or indication as to when the amendments will enter into force. Despite this uncertainty, entry into force is expected in the near term.

Key changes under the amendments include:

Broadened scope to include targets participating in security-graded procurement and holding a facility security clearance
Lowered threshold to 10 per cent of share capital or voting rights (down from 1/3)
Introduction of a standstill obligation
Expanded information exchange restrictions

BAHR’s Perspective

Both regulatory frameworks will have substantial implications for investment activities in Norway, particularly for transactions involving foreign investors or security-sensitive sectors. The timeline for implementation of both the Security Act amendments and the new Investment Control Act remains uncertain. BAHR closely monitors these developments and will continue to provide relevant updates.