The geopolitical conditions caused by military actions in the Middle East are influencing investors' choices, but Latvia currently has certain advantages, said Ieva Jāgere, director of the Latvian Investment and Development Agency (LIAA), in an interview with the LETA agency.
According to her, for example, the development of the defense industry is particularly relevant now, and there is investor interest in Latvia for these projects. The head of LIAA acknowledged that under different circumstances, such investors might not have considered Latvia at all.
"We position ourselves as a strategically advantageous location and in these geopolitical conditions see more opportunities, not focusing on those investors who are not ready to make investment decisions in such a situation," said Jāgere.
She added that, for instance, Latvia sees opportunities for attracting large data centers, as major players are evaluating relocating their data centers to Europe due to the current situation in the Middle East.
"Everything depends on how attractive an offer we can make right now. Therefore, the current conditions may play to our advantage, as there are a number of investors who are starting to consider different options than what was accepted in 'peaceful times'," noted Jāgere.
At the same time, she acknowledged that the current situation affects Latvian exporters. However, after Russia's invasion of Ukraine, Latvian companies have learned to adapt to changing conditions.
The head of LIAA emphasized that there are no longer situations where companies rely solely on already established markets.
"Of course, our main markets remain Lithuania and Estonia due to logistics, but overall, the geography of exports is very broad. Entrepreneurs have understood the situation, adapted, and are able to follow changing conditions," emphasized Jāgere.
