Yesterday, a proposal for a Greenlandic FDI screening bill was introduced. The bill follows the wide-ranging security agreement that Greenland, the Kingdom of Denmark, and the United States signed on 22 September 2026 on strengthened security in the Arctic and the North Atlantic Area, which included restrictions on foreign investment in particularly sensitive sectors in Greenland. The new bill has significant implications for foreign investors. This newsletter sets out the key provisions of the bill, what they will mean in practice and the next steps in the legislative process.
On 22 September 2026, Greenland, the Kingdom of Denmark, and the United States of America signed a security agreement at the United Nations General Assembly in New York, available here and covered in our newsletter on 23 September 2026.
Under Article X of the Agreement, states or foreign investors from a state that is not a member of NATO, a NATO partner, or an EU Member State are prohibited from having (i) control, (ii) significant influence, or (iii) access to non-public information that may pose a threat to national security or public order within particularly sensitive sectors or activities in Greenland, including its territorial waters. An exception applies where Greenland, the Kingdom of Denmark, and the United States of America agree that a particular state’s or investor’s activities do not pose a threat to national security or public order.
The objectives of Article X are to be secured by Greenland, in close cooperation with the authorities of the Kingdom of Denmark, through the application of its current or future investment screening legislation. The relevant Danish authorities are, in turn, required to consult closely with relevant American authorities and other partners.
To ensure compliance with Article X, Greenland and the Kingdom of Denmark must establish and maintain investment screening regimes. Denmark has already adopted such legislation, whereas the area remains unregulated in Greenland. With yesterday’s bill that has been introduced to the Inatsisartut, the Parliament of Greenland, this legislative gap is being addressed.
Yesterday, a proposal for a Greenlandic FDI screening bill was introduced to establish a Greenlandic regime for the screening of foreign direct investments (“FDI Bill”).
The proposed measures are set out in the FDI Bill to Inatsisartut Act on Screening of Certain Foreign Investments, available here.
The FDI Bill applies to foreign investors. A foreign investor is defined as either:
According to section 4 of the FDI Bill, a foreign investor who intends to invest within particularly sensitive sectors and activities must apply Naalakkersuisut for permission. The particularly sensitive sectors are:
According to the preparatory works to the FDI Bill, “infrastructure” is understood broadly to comprise facilities, systems, processes, networks, technologies, assets and services. Infrastructure is considered “critical” when it is necessary to maintain or restore functions of importance to society. Critical infrastructure comprises undertakings and entities that are necessary to maintain or restore functions of importance to society within sectors of importance to society. The following sectors/areas will, in each case, be regarded as being of importance to society: energy (gas, electricity, oil, water), information and communications technology, transport, emergency preparedness and civil protection, critical raw materials, drinking water, finance and economy, research, meteorology, the defence industry, as well as intelligence and security services, foreign affairs, the exercise of public authority generally, and cross-sectoral crisis management.
To trigger an FDI filing obligation, investments made by a foreign investor within the above listed particularly sensitive sectors must be categorised as a “foreign investment”. To be categorised as a foreign investment, the investment must result in one of the below listed situations with regards to the ownership interest or the type of control acquired by a foreign investor:
a) the foreign investor acquires direct or indirect possession of, or control over, at least 25% of the ownership interests or voting rights in an entity domiciled in Greenland, or
b) the foreign investor increases its direct or indirect possession of, or control over, ownership interests or voting rights in an entity domiciled in Greenland to at least one third, 50%, two thirds or 100%, or
c) the foreign investor otherwise obtains direct or indirect controlling influence over decisions concerning managerial, financial, developmental or operational matters in an entity domiciled in Greenland, or over business-critical areas in an entity domiciled in Greenland, or
d) the foreign investor takes over or initiates other activity in Greenland that may constitute a threat to Greenland’s security or public order.
Otherwise obtaining direct or indirect controlling influence as described in point (c) above should be understood broadly. The foreign investor can otherwise obtain a controlling influence within the listed areas by purchasing assets, giving long-term or irrevocable loans, or through lease agreements, operation agreements, delivery agreements and research partnerships. The controlling influence must regard the entity’s decisions on at least one of the listed matters.
Point (d) applies to cases where the foreign investor takes over or commences other activity in Greenland that may constitute a threat to Greenland’s security or public order, but without at the same time obtaining possession, control or controlling influence over an entity domiciled in Greenland as covered by points (a)-(c). The provision allows for intervention in respect of takeovers or the commencement of other activity that fall outside the scope of application, but which constitute a similar threat to Greenland’s security or public order.
The new rules are set to enter into force on 1 July 2027 subject to the next legislative steps described below. Any foreign investments made prior to 1 July 2027 fall outside the scope of the proposed legislative framework.[1]
Save for any amendments during the legislative process that is now underway, foreign investors should carefully consider the FDI ownership thresholds and the types of control that trigger screening obligations when negotiating ownership structures and shareholder rights in Greenlandic transactions. Certain ownership percentages and other types of controlling influence may bring an investment within the scope of the FDI regime, and the screening process can be lengthy.
We recommend that foreign investors assess potential FDI implications at an early stage of the investment process to ensure that the necessary approvals are obtained in good time and that transaction timelines are not adversely affected. Investors with complex ownership structures or links to third countries outside NATO and the EU should, in particular, undertake a careful analysis of both the Agreement and the future FDI Act to ensure compliance and to structure their investments appropriately.
The FDI Bill is scheduled for the first parliamentary reading on 10 November 2026. The second and third parliamentary readings have not yet been scheduled but are expected to take place during spring 2027. Typically, the most significant alterations to bills take place after the first reading.
At Gorrissen Federspiel, we will closely monitor the legislative process and stand ready to advise on the new legislative regime.
For companies considering investments in Greenland, it is essential to establish the correct regulatory framework from the outset. Gorrissen Federspiel advises on all legal aspects of FDI into Greenland, from initial structuring and FDI screening to regulatory approvals and investment protection.
As the Greenlandic investment screening regime is newly introduced, companies should seek early legal advice to assess whether a planned investment triggers a filing obligation, and to understand the timelines, thresholds, and procedural requirements that will apply. Proactive engagement with the screening process, rather than treating it as a formality, can be decisive for the timing and outcome of a transaction.
Our team includes lawyers with deep expertise in FDI screening and applications, international investment law, and the Greenlandic FDI regulatory framework, grounded in a strong commercial understanding of the market. Through our longstanding cooperation with Arctic Law, we combine international legal capability with on-the-ground knowledge of the Greenlandic market.
We follow our clients into Greenland and are ready to assist at every stage of the investment process. For a first conversation about your investment plans in Greenland, please reach out to our team.
[1]A proposal for an FDI Bill was first introduced in October 2025. Following cabinet changes in April 2026, the initial proposal was withdrawn. The new proposal largely reflects the original proposal.