Latvia has become one of the most important long-term investment destinations in the region – Ingka Investments, the investment arm of Ingka Group (the world's largest IKEA retailer), has agreed with Sweden's largest forest owner association, Södra, to purchase 135,000 hectares of forest land in Latvia and 18,000 hectares in Estonia.
"Ingka Investments is a Netherlands-based foundation that manages funds worth EUR 27 billion and plans its investment strategy for a period of 50 to 100 years. The decision of such a high-level investor to invest in Latvia is a high assessment of our country's investment environment and, at the same time, a positive signal to other investors who are evaluating opportunities to invest in our region," emphasizes Ieva Jāgere, Director of the Investment and Development Agency of Latvia.
The LIAA began working with Ingka Investments two years ago, and this cooperation has resulted in the first major deal. However, given that green energy projects also make up a significant part of Ingka Investments' portfolio, work in this direction is continuing.
"This is also a major deal for Ingka Investments. We have been in Latvia since 2014, when we made our first investment in forestry here. We represent IKEA, which has been present in the Latvian economy for many years, but only 6% of the wood we sell goes to the IKEA chain, with the rest being sold on the open market and ending up in Latvian processing companies. We also have a positive outlook on future investments in Latvia and are monitoring which sectors are developing and what innovations are being introduced," says Peter van der Poel, CEO of Ingka Investments.
An investment that strengthens the local economy and regional development
Ingka Investments already manages 110,000 hectares of forest land in Latvia, and in the 2025 financial year, the company's turnover reached EUR 11.9 million. The company works closely with local forestry and wood processing companies.
The company has planted more than 2.5 million tree seedlings during the year, ensuring a net increase in forest area of more than 250,000 cubic meters. In addition, 21% of the company's forests in Latvia are managed with a special focus on the environment, and commercial activities are completely excluded from an area of almost 3,000 hectares, giving priority to strengthening biodiversity.
The acquired forest areas are located in various regions of Latvia, which will contribute to regional development by ensuring sustainable forest management and the development of local production.
Dutch investments in Latvia
Over the past four years, the Netherlands has risen from the top 10 to the top 5 foreign investors in Latvia. Total Dutch investment in Latvia to date amounts to EUR 1.36 billion, ranging from real estate to manufacturing and from ICT to transport logistics. In addition to the activities of the Ingka Group, several other Dutch investment projects are being developed. These projects cover sectors such as renewable energy, energy storage, sustainable infrastructure development, and electronics manufacturing. Some projects also cover the high-tech and space sectors, ranging from aircraft parts manufacturing to satellite systems.
About Ingka Investments
Ingka Investments is the investment arm of Ingka Group, the largest operator of IKEA stores. The company invests in and manages strategic businesses in six areas: forestry, renewable energy, real estate, the circular economy, financial markets, and venture capital.
In total, Ingka Investments manages more than 331,500 hectares of land: in Latvia (110,000 ha), Estonia (31,000 ha), Lithuania (27,000 ha), the USA (75,000 ha), Romania (51,000 ha), New Zealand (28,500 ha) and Finland (9,000 ha).
Ingka Group is the world's largest IKEA retailer, operating in 31 countries and accounting for approximately 90% of IKEA's total retail turnover. Unlike other companies, the group is owned by a charitable foundation, which allows it to reinvest all its profits in further development rather than paying dividends to private shareholders. This gives the company access to its own financing for significant long-term investments, such as the purchase of forest land.