Greenland’s lawmakers are moving forward with a foreign investment screening law following a notable increase in property interest from US buyers in Nuuk during early 2025, reported Reuters.
According to sources with knowledge of the matter, local lawyers and real estate firms in the capital received an unusual number of enquiries from US investors at the same time when US President Donald Trump renewed efforts to assert greater influence over the Arctic territory.
In response, Greenland’s government tightened restrictions on foreign purchases by February 2025, aiming to prevent overseas buyers from worsening shortages in Nuuk’s housing market.
The proposed screening law was formally submitted to parliament in October and had originally been drafted to address concerns about unwanted Chinese investment.
However, recent developments have shifted its focus toward managing interest from American investors as well.
The draft legislation requires foreign investors to disclose their source of funds and gives authorities the power to block agreements if political ties or intentions are deemed problematic.
Under the bill, sectors deemed sensitive, such as mining, hydropower, critical infrastructure, IT and classified data systems, and government-owned companies, would be subject to mandatory screening.
While the legislation does not single out specific countries, it encourages cooperation with allies and provides Greenland with the authority to reject investments considered a risk to national security or public order.
The bill would apply within Greenland’s jurisdiction but would not cover US military activities on the island, which remain under the control of Denmark.
Greenland has sought external capital for years to diversify its economy, particularly through mining projects. However, growth remains limited by inadequate infrastructure and labour shortages.
Business Minister Naaja Nathanielsen stated that the new law was not developed solely in reaction to US investor interest and expressed continued openness toward responsible investment.
Ongoing negotiations between Greenlandic officials and the US regarding access and presence on the island persist.
