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2017 The Economic Profile of Riga
Transcript of The Economic Profile of 2017 - pasvaldiba.riga.lv › NR › rdonlyres ›...
2017
The Economic Profile of Riga
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Riga in 2030……will be internationally recognizable Northern European metropolis. The full membership of the Riga in the Northern European Metropolises family based on the quality of life in the city, an innova-tive economy, smart and efficient resources management and modern governance, with the active participation of the population.
Sustainable Development Strategy of Riga until 2030
Riga in 2017…...is one of the largest metropolis in the Baltic Sea region and the biggest industrial, business, fi-nancial, cultural and sports centre in the Baltic States, as well as an important port city and trans-portation hub between the West and the East.
Area: 304 km2
Time zone: GMT+2
Accessibility: By plane – from more than 80 cities all over the worldBy train – from Russia, Belorussia and EstoniaBy ferry – from SwedenBy bus – from more than 100 European cities
Population (2016): 639.6 thousand
Share of economically active population (2016): 71.2 %
The average monthly gross wages and salaries (2016):
949 EUR
Unemployment rate (2016): 4.8 %
National currency: Euro (EUR)
Number of enterprises (2015): 71 465
Number of newly established enterprises (2016): 6 305
The largest sectors of the economy based on the number of enterprises (2015):
Services (32 064)Trade (15 016)Construction (4 783)Manufacturing (3 994)
Non-financial investments (2015): 2 534.3 million EUR
Accumulated foreign direct investment in share capital of companies (2015):
5 789.7 billion EUR
World Bank Doing Business 2017 rating of Latvia: 14th place among world countries6th place among the member state of the European Union
Standard & Poor’s credit rating of Riga (2016): BBB+/A-2
Climate: Average temperature in summer months does not exceed 20 °CAverage temperature in winter months is not lower than 0 °C
Information about Riga: www.riga.lv www.investeriga.lv
THE FOREWORD .........................................................2
Opening statement of the Chairman of the Riga City Council ...........................................3
THE URBAN ENVIRONMENT ................................5
GENERAL INFORMATION ..................................6
Geographical location .............................................6
Climate ..................................................................... 7
Nature and water areas ........................................... 7
SOCIETY ......................................................................8
Population ................................................................8
Education .................................................................9
Culture ......................................................................9
INFRASTRUCTURE ...............................................11
Housing ...................................................................11
Transport .................................................................11
Engineering Infrastructure .................................... 14
Information and Communication Technology Infrastructure ......................................................... 15
LIFE QUALITY IN THE CITY ............................. 16
ECONOMIC ACTIVITY ..............................................17
GENERAL INFORMATION ................................ 18
BUSINESS ACTIVITY .......................................... 18
Number of Enterprises .......................................... 18
Number of Employees in Enterprises .................. 19
Largest Enterprises ............................................... 19
STRUCTURE OF THE ECONOMY ..................20
Priority Sectors ......................................................20
Types of Business Activity ....................................22
TABLE OF CONTENTS
INVESTMENTS ......................................................... 23
Non-financial Investments ....................................23
Accumulated Foreign Direct Investments ...........23
ECONOMIC ACTIVITY OF POPULATION ...... 24
Employment and Unemployment ........................24
Level of Education of Economically Active Population ...............................................................24
Wages and Salaries of Employees ........................25
TRANSPORT AND LOGISTICS .......................25
Air Transport ..........................................................25
Water Transport .....................................................26
Land Transport .......................................................27
TECHNOLOGIES ...................................................28
Usage of Computers and the Internet .................28
E-Commerce ..........................................................28
BUSINESS AND INVESTMENT ENVIRONMENT ..........................................................29
GENERAL INFORMATION ............................... 30
BUSINESS ENVIRONMENT LEGAL FRAMEWORK .......................................... 31
STARTING A BUSINESS ....................................32
TAXES AND FEES SYSTEM ..............................34
DESCRIPTION OF COMMERCIAL PREMISES AVAILABILITY ................................35
SUPPORT FOR STARTING AND DEVELOPING BUSINESS ......................35
INFORMATIVE SUPPORT .................................38
BUSINESS SUPPORT AND COOPERATION INSTITUTIONS ....................39
INTERNATIONAL COOPERATION ................45
USEFUL INFORMATION .........................................47
32 3
Riga is formed by its residents, its urban envi-ronment and economic activity. These are the main characteristics that create and develop our northern metropolitan style and are col-lected and reviewed in this annual edition.
Riga is an important business centre that con-centrates more than half of all economic ac-tivity of Latvia. It is demonstrated also by the World Economic Forum study, which conclud-ed that of all the European countries particular-ly Latvia has the highest rates of new business-es and our city is very suitable and open for starting a new business. Most of the start-up companies are registered particularly in Riga. Acknowledging that the establishment of new businesses promotes the growth of the city, the city council therefore focuses its attention and provides support for the development of both traditional and social enterprises, and will en-sure such support in future as well.
Riga has the biggest port in the Baltic States, and also the airport “Riga” is the largest in the Baltic States; and it not only promotes the de-velopment of tourism, but also contributes to the diversity of cultural life. It is known that this year a number of world-class music stars will be performing in Riga and up to the time of the celebration of Latvia’s centenary the city will continue to delight people with not only al-ready known artistic and cultural activities, but will also actively participate in the creation and implementation of new ideas.
Compared to other European cities, Riga is a city with extensive natural area that takes 40 % of the total area of Riga and gives the unique leisure and recreational opportunities for res-idents and city guests. Acknowledging this value, the city council also pays particular at-tention to improvement of city’s green area. In previous years, a lot of effort has been made to implement the projects for the development of attractive urban environment. For example, in 2016 the project for revitalisation and transfor-mation of the former dump area to recreation area for residents has been completed, the de-velopment of the biggest children’s playground of Latvia in Lucavsala has been continued, and also infrastructure improvement works have been carried out in Riga Zoological Garden, as well as in residential places, and on central traf-fic highways of the city.
Riga is a city of opportunities and our competi-tiveness lies not only on the geographical loca-tion, the availability and quality of education or economic activity, but at the same time also on the ability to offer increasing quality of life. Riga is able to offer living space in a clean city with a convenient and accessible public transport, low noise level and comprehensive educational, cul-tural, sport and entertainment opportunities.
As the legend tells, Riga is a city that will never be finished, it is always in a dynamic develop-ment process, and therefore I invite everyone to devote their time and generate ideas that is one of the most valuable investments what each of us can make for the development of the city.
Nils UšakovsChairman of the Riga City Council
PB
URBAN ENVIRONMENT
4
76
Riga
Vilnius
Tallinn
Helsinki
Moscow
Stockholm
Warsaw Minsk
920 km
550 km
300 km 480 km
310 km
400 km
660 km
Geographic LocationRiga is the capital city of the Republic of Latvia. Geographically it is located in the centre of the Baltic State region, and it is the largest city in the Baltics and the third largest city (after St. Petersburg and Stockholm) in the entire Baltic Sea region.
Climate The climate of Riga is determined by the mod-erate latitude air masses of the Atlantic Ocean connected with the active cyclonic action; there-fore, it is often cloudy and with precipitations in the city. Summers in Riga are moderately warm (average temperature in summer months does not exceed 20 °C) and winter months are also relatively warm (average temperature in winter months is not lower than 0 °C).
GENERAL INFORMATION
1 The Spatial Plan of Riga for 2006 – 2018 with amendments. Explanatory memorandum..
Distance from Riga to the nearest European capital cities
5%16.66 km2
port territory
30%91.03 km2
residential area
28%85.09 km2
green area
16%47.67 km2
water bodies
15%45.19 km2
roads (streets), within the borders of red lines
1%2.86 km2
2%6.90 km2
3% 8.65 km2
airfield territory
industrial area
technical construction territories
The planned usage of territory of Riga1
20
15
10
5
0
I II III IV V VI VII VIII IX X XI XII
The number of days with precipitations in Riga, 20163
20
15
10
5
0
-5
-10
I II III IV V VI VII VIII IX X XI XII
The average air temperature in Riga, 20162
Nature and Water TerritoriesThe terrain of Riga is mostly flat and gently slop-ing, and its relative height is 1-11 m above the sea level. Judging by the size of the green area, Riga can be considered as one of the greenest capital cities in Europe. There are large variety of green areas in Riga – parks, forest areas and forest parks, squares, courtyards, boulevards, etc. To be able to follow and to monitor air quality and noise level in the city, the regular air quality monitoring has been carried out.5 In the total area of the city, 40 % are green (85.09 km2) and blue (47.67 km2) territories. The green area of the city consists of 29 parks, 10 large forest areas and parks, 24 cemeteries and 66 squares. Daugava – the largest river of Latvia runs through the city, as well as several smaller rivers. 9 lakes and ponds are located in the ter-ritory of Riga.
2 Central Statistical Bureau. Available: www.csb.gov.lv 3 Central Statistical Bureau. Available: www.csb.gov.lv4 Central Statistical Bureau. Available: www.csb.gov.lv5 The Riga City Development Programme 2014 - 2020. Available: www.sus.lv/sites/default/files/media/faili/attistibas_programma_2014-2020.pdf
Sunshine hours in Riga in 20164
400
350
300
250
200
150
100
50
0
I II III IV V VI VII VIII IX X XI XII
The total area of the city is 304 km2; and it is divided into six dis-tricts that, in turn, are sub-divided into 58 neighbourhoods.
7
98
SOCIETYPopulation According to the data on population, Riga is the largest city in the Baltic States – in 2016 639.6 thousand people lived in Riga, 532.8 thousand people – in Vilnius, 423.4 thousand people – in Tallinn. 32 % of total population of Latvia lives in Riga and it is the highest indicator among the Member States of the European Union (along with Tallinn in Estonia (32 %) and Athens in Greece (29 %)).6 7 Despite the number of over-all population in the city is decreasing (due to demography and migration), over the last five years the birth rate is increasing.
Like in other European cities, one of the most im-portant development challenges in Riga is relat-ed to the growing age dependency rate. Over the last five years, the proportion of the working-age population has dropped from 65 % to 61.5 %, and respectively the proportion of population till and above the working-age has increased.
The proportion of population till the working-age, in the working-age and above the working-age groups in Riga, 201610
EducationIn 2016, in Riga there were 232 pre-school edu-cational institutions (under the authority of local governments and private institutions) and 145 general education institutions, where respective-ly 30 989 and 79 142 school children studied.12 In Riga 11 thousand students receive vocational ed-ucation, and it is 40 % of all vocational education students in Latvia.13 Furthermore, there are 46 high schools and colleges in Riga and more than 77 thousand students are studying there, that is more than 80 % of all students in Latvia. Apart general and higher education opportunities, there is a wide range of interest education offers in sports, culture, leisure and other activities.
Education possibilities in Riga14
CultureRiga, as the capital city of the Republic of Latvia, has always maintained the city’s and the whole country’s tangible and intangible cultural heri-tage. There are many architectural monuments of national importance in the city; and it is also a venue for cultural events of regional, national and international significance. In one year the munic-ipality organises more than 300 events and in overall more than 700 thousand people attend them.15 The offer of wide range of cultural activi-ties is also provided by event organisers working in private sector that organize more than 4 thou-sand events a year for which generally more than 1 million tickets are sold.16 Residents of Riga are provided with opportunities to involve themselves in amateur performances – 174 amateur groups are working in municipal cultural institutions.
Number of new-borns in Riga9
2012
2013
2014
2015
2016
610 620 630 640 650 660 670 680600
2012
2013
2014
2015
10000 2000 3000 4000 5000 6000 7000
In recent years the ethnic composition of the population in Riga has not changed significantly – the proportion of Latvians has slightly increased and the proportion of Russians – decreased. In 2016 46.2 % of those who live in Riga were Latvians, 37.7 % - Russians, 3.9 % - Belarusians, 3.5 % - Ukrainians, but about 9 % – various other nationalities.
The proportion of nationalities in Riga, 201611
0 10 20 30 40 50
Latvians
Russians
Belarusians
Ukrainians
Poles
Lithuanians
Romans
Other nationalities, including unspecified nationality
Till the working-age
In the working-age
Above the working-age
61.5
23.6
14.9
The number of permanent residents in Riga8
6 Central Statistical Bureau. Available: www.csb.gov.lv7 EUROSTAT Urban Audit. Available: http://ec.europa.eu/eurostat/web/cities/data/database 8 Central Statistical Bureau. Available: www.csb.gov.lv9 Central Statistical Bureau. Available: www.csb.gov.lv10 Central Statistical Bureau. Available: www.csb.gov.lv11 Central Statistical Bureau. Available: www.csb.gov.lv
pre-school education
institutions
232
general education institutions
145
high schools and colleges
46
interest education institutions
13
sports schools
11
leisure time centres
23
music and art schools
9
sports arenas located at education
institutions
36
childcare centres
4
Culture-related artistic groups in Riga, 2016 17
12 Central Statistical Bureau. Available: www.csb.gov.lv13 Data of the Ministry of Education and Science. Available: www.izm.gov.lv/lv/publikacijas-un-statistika/statistika-par-izglitibu/statisti-
ka-par-profesionalo-izglitibu/2015-2016-m-g 14 The Education, Culture and Sports Department of the Riga City Council. Available: http://dati.e-skola.lv/lv/izglitibas-iestades/skolas 15 2015 Annual Report of the Education, Culture and Sports Department of the Riga City Council. Available: www.iksd.riga.lv/upload_file/IKSD_
pievienotie/0_2016/02_2016/Dep_prezentacija_2015_darbibas_parskats.pdf 16 The Ministry of Culture. The study on the Impact of Applying VAT in the Culture Sector. Available: www.km.gov.lv/lv/doc/noderiga/2016/
KM_PVN_03_2016_Laboratory_Final.pdf 17 The Education, Culture and Sports Department of the Riga City Council. Data bases of artistic groups. Available: www.kultura.riga.lv
amateur theatre
16
dance groups
53folklore groups
18 photo and cinema studios
4
lute-players groups
6
choirs86
applied arts studios
39vocal groups
44
fine arts studios
8
orchestras, instrumental groups and
chapels
20
8000
1110
Once every five years the Latvian Nationwide Song and Dance Celebration Festival is held in Riga, every three years – the international folklore festival Baltica. Every year such events like the Riga City Festival, the Lacplesa day, the Staro Riga Light Festival, the Proclamation Day of the Republic of Latvia, the Music and Arts Festival Bildes, the international music festival Rigas Ritmi, the Baltic Ballet Festival, the Gold-
INFRASTRUCTUREHousingThe standard multi-apartment houses are the bases of Riga housing fund. The city’s housing fund consists of state, local and private-owned residential houses constructed in different time periods. Most of the houses were built in the So-viet times – 72 % of the total population of Riga live in such houses. Large part of the houses were also built before the war and during the first independence period of Latvia, while the third big housing construction boom began in 2006, which significantly slowed down along with the economic crisis.
88 % of the population of Riga live in multi-apart-ment houses with 10 or more apartments, 5 % – in multi-apartment houses with up to 9 apart-ments, 7 % – in private houses or estates. The to-tal residential area per citizen of Riga is 30 m2 and over the last five years it has increased for 3 m2.21
Swedbank Baltic Housing Affordability Index shows that in Riga this figure is 171.3 and it is higher than in Tallinn (159.6) and Vilnius (128.1). The fall of the average prices of houses for 6.9 % during the last year facilitated improvements in housing affordability. Time required to save 15 % needed for the first deposit for buying a home in Riga is 23.6 months.22
In the Latio Residential Market Report it is con-cluded that significant increase of activity is ob-served in the market of private houses in Riga and its suburbs, where in 2016 the increase of the number of transactions has been for 32 %. Hous-ing market activity in Riga is about 600 transac-tions per month. Sales of standard multi-apart-ments makes 66 % of the housing market in Riga, 20 % – apartments in new projects, but 13 % - apartments in the centre of the city. At the same time, the sum of sales of apartments in the new projects makes nearly half (46 %) of the to-
en Mask Theatre Festival in Latvia and other events take place in Riga. In 2017 Riga - Gauja region will become the European gastronomy region (along with Aarhus and central Den-mark, as well as the Lombardy region in Italy). In cooperation between cities Riga, Sigulda, Cesis and Valmiera, the special concept With Nature on The Plate was created for exploring gastronomic diversity of the region.
The largest culture events in Riga in 201718
08.-14.05. Riga Restaurant Week in spring
13.-14.05. Lattelecom marathon
20.05. Museum Night
08.06.-18.06. Riga Opera Festival
22.06. Midsummer Fair in Dome Square in the Old Town
23.06.-24.06. Midsummer Night celebration in 11th November Embankment and in Dzeguzkalns
16.07.-23.07. European Chorus Games
28.06.-02.07. Jazz music festival Rigas Ritmi
18.08.-20.08. Riga City Festival
09.09. Contemporary culture forum White Night 2017
09.-15.10. Riga Restaurant Week in autumn
17.11.-19.11. Staro Rīga Light Festival
26.11.-06.01. Christmas markets in Riga
09.12.-08.01. Festival of environmental objects Path of Christmas Spruces
15.12.-29.12. Arts students’ exhibition Jarmarka
31.12. Celebration of New Year Eve in Riga, in 11th November Embankment
The historic centre of Riga is included in the UNESCO World Heritage List.19 In the centre of Riga 40 % of all buildings are Art Nouveau buildings; and it is much more than in any other European city.20
18 The Education, Culture and Sports Department of the Riga City Council. Available: www.kultura.riga.lv/public/31285.html The Tourism Department of the Investment and Development Agency of Latvia. Available: www.latvia.travel
19 The Riga Historical Centre Preservation and Protection Act20 The Tourism Development Agency: www.tava.gov.lv
tal Riga housing market transaction. In the near future, 10 more new projects will supplement the housing market.23
Housing fund in Riga24
Total area, thousand m2
Total area per perma-nent capita, m2
Number of newly build residential buildings
Newly build residential buildings, thousand m2
2012 18 267 28 550 72.9
2013 18 853 29 513 78.9
2014 19 241 30 940 128.7
2015 19 350 30 858 109.0
Transport For reaching the long-term objectives, the sus-tainable transport infrastructure and its organi-sation is determined as one of the main priority directions in the Riga City Development Prog-ramme 2014-2020.25
Road Transport
Riga is the key international, domestic, suburb passenger and cargo transportation junction in Latvia. The road network in the Riga region is relatively dense and it ensures a radial link of Riga with the rest of the territory of Latvia.
In Latvia all the major roads and transport cor-ridors are crossing the capital city:• in the North – South direction, it is ensu-
red by the first transport corridor in Europe Via Baltica and it connects European cities: Helsinki – Tallinn – Riga – Kaunas – Warsaw and Riga – Kaliningrad – Gdansk;
• in the West – East direction, it is ensured by the European route E22 that begins in the UK and extends till the central part of Russia.
21 Central Statistical Bureau. Available: www.csb.gov.lv22 Baltic Housing Affordability Index 2016. Available: www.swedbank.lv/analitiskie_materiali/baltijas_majoklu_pieejamibas_indekss/ 23 Latio Residential Market Report. Riga and regions. Quarter 3 of year 2016. Available: http://latio.lv/lv/pakalpojumi/tirgus-analize/majoklu-tir-
gus/144/latio-majoklu-tirgus-parskats-2016-q3.pdf 24 Central Statistical Bureau. Available: www.csb.gov.lv25 Riga City Development Programme 2014-2020.
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way connection between the Baltic States and the major Western European economic, admin-istrative and cultural centres. It will also provide possibilities for the new cargo corridor (North-South), as well as development of logistic ser-vices. It is estimated that thus at least 1.5 billion euros will flow into the Latvian economy. Thanks to the new railway network, not only railway ca-pacity will be increased, but the speed, as well; whereas, regarding passenger services, travel time will be reduced, as well as car traffic flow to ViaBaltic highway and to the Polish and German highways will be reduced, thus contributing also to environmental friendly transport – railway – development.28
Following companies operate in the Latvian railway sector:• JSC Latvian Railway, manages the public
railway infrastructure;• JSC Pasazieru Vilciens (Passengers’ Train);• several organisations and sector companies
Cargo transportation in Latvia is ensured by JSC Latvian Railway daughter-company LLC LDZ Cargo and by two private capital compa-nies – JSC Baltijas Ekspresis and JSC Baltijas Tranzita Serviss. Private companies transport on average 20 % of the total amount; it is one of the highest rates in Europe.
Domestic public rail transport service provi-der is JSC Pasazieru vilciens, but international railway passenger transport is currently provi-ded to Russia and Belarus by JSC LDZ Cargo in cooperation with LLC L-Ekspresis.
Water Transport
Water transport in Riga is ensured by the Free-port of Riga that plays an important role in the global and regional cargo transport chain, as well as in the passengers’ transportation net-work in the region of the Baltic Sea. The port is a middle point of main transit roads and the eastern – western transport corridor, as it is in-cluded in such corridors:
• Trans-Siberian highway;• North – South road through Minsk;• Daugava – Dnieper waterway project.
Moreover, the European Union has determined that Riga is a part of the Trans European cor-ridor I (TEK I) connecting Helsinki with Tallinn, Riga, Kaunas and Warsaw.
In order to clear the city centre from transpor-tation transits and traffic jams, the Southern Bridge was opened in 2008. On its both shores trunk roads with transport junctions are built ensuring the operation of the bridge. In 2011 Slavu transport junction, as well as the Eastern highway became publicly accessible. In 2013 the transport junction on the left shore in direction to Zemgale was finished, thus concluding all the trunk roads required for complete exploitation of the Southern Bridge. Thus, all the transportation transits can freely bypass the city centre; more-over, the system of the new trunk roads creates an exit to the transport corridor of the national importance road Via Baltica.26
Riga also provides the efficient and comfortable public transportation services for citizens and visitors of the city. The responsible company is the municipal LLC Rigas Satiksme (Traffic of Riga) providing the city with 53 bus routes, 19 trolley-bus routes and 9 tram routes serving about 150 million passengers. Besides, LLC Ri-gas Satiksme ensures parking lots services of-fering more than 5 thousand parking lots.
In Riga, as in the capital city of Latvia, a great importance is given to ensuring agglomeration with the rest territory of Latvia, as well as to transportation of international passengers; that is provided by JSC Riga International Coach Ter-minal, cooperating with 30 passenger transpor-tation companies (16 companies ensure domes-tic transportations, 18 companies ensure inter-national transportations, 12 of those are foreign companies). The Riga International Coach Ter-minal on average maintains 420 routes daily, of those 350 are domestic and 70 are international routes, serving more than 2 million passengers.27
Railway Transport
Railway transport is one of the most advanta-geous means of land transportation from se-curity, as well as from ecological aspect. From all the domestic land transportations, railway cargo transportation is approximately 52 %
and passenger transportation in the Riga re-gion – 30 %. In the railway cargo transporta-tion structure, 85 % are transit operations, mainly from Russia and Belorussia to Latvian ports (the Eastern – Western transit corridor); inland transportation is about 5 % that can be explained with relatively short transportation distances. Almost all railway routes in Latvia go through Riga.
In 2015 the project envisaging development of the infrastructure in Krievu Island to transfer port activities from the city centre has been suc-cessfully completed. The aim of the project was to free city centre from coal dust and carriage noise, and to facilitate the competitiveness of the port. In Krievu Island four bulk handling berths with a total length of 1 180 meters and 15.5 meters depth at the piers were built, as well as all necessary access roads and railway links, and engineering communications to port area were ensured. Total capacity of Krievu Island project is 20 million tons of bulk cargo a year.
Railway of Latvia is included in one of the five transnational transport corridors defined by the European Union – the Northern Transport Cor-ridor connecting the northern part of the Euro-pean Union with Norway and the eastern part with Belorussia and Russia.
The existing railway network in the Baltic States was built according to Russian standards, but in the Western Europe railway tracks differ in width, therefore, railway of Latvia cannot be connected directly with the railway network of Poland and Germany and currently on Lithua-nian boarder the width of wagon wheels is be-ing changed. However, the project Rail Baltica has been implemented, aiming to re-establish a direct link between the railway network of the Baltic States and the European railway network and to promote the regional integration by con-necting metropolises of Tallinn – Riga – Kaunas – Warsaw – Berlin. Implementation of the Rail Baltica project will ensure the high-quality rail-
26 The Riga City Sustainable Energy Action Plan for Smart Cities 2014 – 2020.27 JSC Riga International Coach Terminal. 2015 Annual Report. Available: www.autoosta.lv/wp-content/uploads/2016/05/2015_-parsk-26-02.pdf
28 Rail Baltica. Available: http://railbaltica.info/par-projektu/par-rail-baltica/ 29 The Authority of the Freeport of Riga: www.rop.lv
Key facts and figures about the Freeport of Riga:
• The Freeport of Riga is located along both banks of the river Daugava and it is 15 km long;
• Total area – 6 348 ha;
• The Freeport of Riga is open for sailing throug-hout the whole year;
• Status of free economic zone;
• Total length of piers – 18.2 km;
• Maximum depth at piers – 14.5 m;
• Warehouse area – 370 979 m2;
• Cargo storage area capacity – 1 926 362 m2;
• Cargo handling capacity of port terminals is 58.2 million tons a year;
• Freezer facility capacity – 25 500 t;
• Reservoir capacity – 665 063 m3;
• Cargo handling capacity – 58.2 million tons a year;
• Cargo turnover – 40 million tons;
• Number of ships – 3 587;
• Up to 80 % of cargo turnover in the Freeport of Riga consists of transit cargos sent to or recei-ved from the Commonwealth of Independent States (CIS);
• 35 stevedoring companies and 28 shipping ag-ents operate in the Freeport of Riga;
• The main cargos are containers, different me-tals, wood, coal, fertilizers, chemical cargos and petroleum products.29
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Air Transport
Large amount of passenger transportation between Latvia and other world countries fa-cilitates the economic growth not only for the city, but also for the entire country. Air trans-port has a great influence on the national econ-omy in general and on the increase of its gross domestic product, creating preconditions and promoting development of other sectors (es-pecially tourism), as well as contributing to the increase of the level of employment. In Latvia air transport is provided by JSC Riga Interna-tional Airport, JSC Latvian Air Traffic and air operators, of which the most influential is the national operator JSC Air Baltic Corporation.
In 2015, in Riga International Airport the EU co-hesion fund project The International Airport Riga Infrastructure Development was complet-ed, within which the major infrastructure re-construction works has been carried out during the past two years. In the result there has been increased flight safety, improved environmen-tal conditions and increased the capacity of the airport. Based on estimates of the airport, in the result of the project activities green-house gas emissions of arriving aircraft has decreased for more than 700 tonnes, and the amount of unsorted waste per passenger has reduced for about 46 %. In 2016 the new North Terminal was opened providing new boarding sectors, three aircraft bridges, new commercial premises, as well as spacious and comfortable waiting rooms for passengers.30
Pipeline Transport
Currently in Latvia there is a trunk of gas pi-peline network connecting the system of gas pipelines of Latvia with Russia, Estonia and Lithuania. In total 3.7 billion m3 of natural gas are transported via those pipelines.31 There are two gas pipelines crossing the city and ensuring it with natural gas:
• Since 1962 Dashava (Ukraine) – Riga;
• Since 1972 Torzhok (Russia) – Riga
provides technical maintenance services of the internal heat supply systems in the buildings.
The main heat producers in Riga are the cogen-eration stations owned by JSC Latvenergo. JSC Rigas Siltums purchases from these stations approximately 70 % of all the necessary heat. About 0.05 % of heat is bought from other com-panies and the rest is produced in JSC Rigas Sil-tums heat sources: five heating stations, as well as several tens of small and medium-sized boil-er-houses. Mainly gas (97 %) is used as fuel; it is also possible to use heating oil, marked fuel and woodchips.
76 % of all heat necessary for Riga is transmit-ted and distributed by JSC Rigas Siltums. 77 % of all the produced and supplied heat is used for household heating and boiling hot water.34 The total length of the city’s heating circuit is about 900 km.
Power Supply
Similarly, like heat supply, power supply is also ensured by the leading energy company in Lat-via – JSC Latvenergo. The company produces 90 % of all the electro energy produced in Latvia; the majority is produced using water as energy resource.35 In accordance with the Electricity Market Law from 1st January 2015 the electricity market is fully open, allowing the natural and le-gal persons to buy electricity from mutually com-peting suppliers. Apart the largest supplier JSC Latvenergo, power supply for private persons is ensured by LLC Baltkom TV, LLC WIN Baltic, LLC 220 Energy, and for legal persons also – LLC En-efit, LLC Baltic Energy Services, etc.
Gas Supply
The supply of natural gas in the Latvian market is ensured by JSC Latvijas Gaze (Gas of Latvia) that transfers, distributes, maintains and sells natural gas, in accordance with licenses issued by the Public Utilities Commission. From the gas used in Latvia, approximately 65 % is consumed in Riga.
Engineering Infrastructure Modern urban life is unthinkable without such obvious things as water, heat, electricity, light and sewerage. Connections to centralized sup-ply systems and the qualitative service thereof are essential for comfortable life.
Water and Sewerage System
Water supply and sewerage system in the city is ensured by LLC Rigas Udens (Water of Riga) that provides good quality drinking water and collects, drains and cleans domestic wastewater. Drinking water in Riga is obtained from six important city’s water sources, using both surface and ground water sources. Most inhabitants living on the left bank of Daugava receives water from Daugava river basin in the water supply zone of the Riga Hydroelectric Power Plant (Riga HES), while in-habitants of the right bank of Daugava – from the ground water source Baltezers-Zakumuiza. Wa-ter treatment station Daugava can produce up to 210 thousand m3 drinking water a day, while Bal-tezers-Zakumuiza – up to 85 thousand m3 drink-ing water. Quality of the produced drinking water and safety of water treatment stations meet the European standards.32
The total length of water supply networks in Riga is 1 423.1 km, including network inlets 332 km in length. To provide the safe and qualita-tive water supply, every year LLC Rigas Udens changes or reconstructs pipelines, hydrants and bolts in the whole territory of Riga.
The total length of the sewerage system network in Riga is 1 141.8 km, including street sewer outlets – 153 km in length. Every year LLC Rigas Udens increases the power of the sewerage system net-work and its pumps, thus ensuring safe collection of wastewater and its drainage to the biological wastewater treatment plant Daugavgriva.33
Heat Supply
The JSC Rigas Siltums (Heat of Riga) is the main supplier of heating in Riga. It ensures produc-tion, distribution and sales of heating, as well as
Lightening
Already since 1947 the lighting system of the city is managed by the Riga Municipality Agen-cy Rigas Gaisma (Light of Riga), whose main task is to maintain, to repair and to improve the operational efficiency of the external lighting networks of city roads (streets), parks and oth-er public objects, as well as reconstruction of its technical basis. The agency provides lightening on streets 3 912 hours a year, ensures work of 357 traffic lights, including maintenance of 88 controlled pedestrian crossing.36
Information and Communica-tion Technology InfrastructureIn parallel to the traditional infrastructure ele-ments (railway, road, ports and airports, as well as energy supply) the comprehensive telecom-munications networks providing fast data and information flow, thereby increasing the effi-ciency of the economy as a whole, are crucial in the 21st century.37 ICT is also one of the leading economic sectors in Riga and in Latvia stimu-lating development of all the national economy – the share of value added of ICT sector in gross domestic product is approximately 4 %.
According to the assessments carried out by the company Akamai in 2016, Latvia has 7th fastest Internet in the world (5th place among European countries and 1st place among Baltic States) – the average Internet speed in Latvia was 17.5 Mbps, while the world average speed is only 6.1 Mbps.38
The Riga municipality is a friendly and suitable city for ICT sector, actively participating, sup-porting, using and promoting different activities and services provided by this sector. For exam-ple, electronic travel cards are used in the public transport in Riga, as well as collections of the museums of Riga can be explored on mobile applications. In the catalogue of the Nation-al Museum of Latvia anyone who is interested
30 The International Airport Riga. Annual Report 2015. Available: www.riga-airport.com/lv/main/par-lidostu/gada-gramata 31 Central Statistical Bureau. Available: www.csb.gov.lv 32 LLC Rigas Udens: www.rigasudens.lv 33 LLC Rigas Udens: www.rigasudens.lv
34 JSC Rigas Siltums: www.rs.lv 35 JSC Latvenergo: www.latvenergo.lv 36 Riga Municipality Agency Rigas Gaisma 2014 Annual Report. Available: www.rigasgaisma.lv 37 Latvia Competitiveness Report. Summary. 2015. Domnica Certus. Available: http://certusdomnica.lv/reports/konkuretspejas-zino-
jums-2015/
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ECONOMIC ACTIVITY
can explore collections and search for specific expositions and items located in the stocks of museums from the distance. Whereas, in the ed-ucation sector, the portal e-klase (e-class) has gained popularity among education institutions, students and parents. To ensure convenient communication between inhabitants and local authorities and departments, the Riga munic-ipality is using IT tools more and more, at the same time reducing its expenses and adminis-trative burden. The main partners in the devel-opment of the ICT sector in Riga are the Latvian Information and Communication Technology Association, Latvian IT cluster, the foundation
The quality of life in the city is an important factor for attracting population and for development of entrepreneurship environment, as well as for in-ternational competitiveness of the city. Therefo-re, the sustainable development strategy of Riga until 2030 defines the mission as: Riga – a city of opportunities. This means that the municipa-lity creates varied opportunities for continuing growth, for creating and implementing ideas and dreams of people who live here, and those who learn and study, those who have come to rest or for doing business here. Therefore, the ultimate mission of the Riga municipality is the improve-ment of the quality of life of its population.
Every year the Riga municipality carries out the population survey to determine what aspects of the quality of life in the city are rated more positive, and what aspects should be improved in future. 2016 survey data shows that the ma-jority of the population of Riga is comfortable with such aspects of the quality of life as cultural events (share of satisfied population – 93 %), the quantity and quality of natural environment (93 %), availability of public transport services (93 %), availability of municipal general educa-tion services (88 %), quality of building site envi-
TechHubRiga, Latvian Startup Association Star-tin.LV, as well as the Riga Technical University and the University of Latvia.
In 2014 Riga became the capital city of free wireless Internet in Europe (taking into account the number of free Wi-Fi points on one km2 and the number of citizens) and also maintained this status in 2015, overcoming all other 27 EU capital cities. On average, in Riga one Lattele-com free Wi-Fi connection point is available for 750 people and three Wi-Fi points on one square kilometre.39
38 Akamai`s [state of the internet]. Q2 2016 Report. Available: www.akamai.com/us/en/multimedia/documents/state-of-the-internet/aka-mai-state-of-the-internet-connectivity-report-q2-2016.pdf
39 Information of Lattelecom. Available: www.lattelecom.lv 40 Riga Population Satisfaction with Work of the Municipality and Processes in the City. Riga Population Survey Results Report 2016. Available:
www.sus.lv/lv/petijumi/aptauja-rigas-iedzivotaju-apmierinatiba-ar-pasvaldibas-darbibu-un-pilseta-notiekosajiem 41 Assessment of Competitiveness Determinants of Riga at National and at International Level. Available: www.sus.lv/lv/petijumi/izverte-
jums-par-rigas-pilsetas-konkuretspejas-determinantiem-gan-nacionala-gan
QUALITY OF LIFE IN THE CITYronment (82 %), the sound level in surroundings (82 %).40 Whereas, EUROSTAT data shows that the main quality of life advantages of Riga com-pared with other European Union countries, is availability of green area, availability of public transport, low noise level in the city, cleanness in the city, and good housing services.41
The most positive aspects of life quality in Riga • Low noise level
• Availability of cultural events
• Available public transport
• Cleanness in the city
• Low level of crime/ security in the city
• Accessibility of green area (parks, boulevards, squares)
• Availability of general education
• Availability of good housing at affordable price
16
1918
Riga has a dominant role in the economy and in the business of Latvia. According to the Lur-soft data, 50 % of all active enterprises in Lat-via are located in Riga, and 87 % of the total share capital of enterprises registered in Lat-via are located in Riga. Out of 20 companies in Latvia with the highest turnover, 18 are located in Riga and 2 – Pieriga region. The newly pro-duced value in the city of Riga is around 50 % of all the produced in Latvia. The dominance of the capital city of Latvia in the national econo-my is the most explicit in the European Union, not counting such small countries as Malta and Luxembourg.
The number of population and population den-sity are crucial indicators of any territorial devel-opment opportunities. The population density indicators suggest that there are only few areas of concentration of the population in Latvia, where the density is higher than the national av-erage. Mostly it is Riga and the area around Riga about 50 km toward Jurmala, Jelgava, Bauska, Ogre, Saulkrasti and Sigulda. Besides, during the last five years region close to Riga – Pieriga region is the only area where the population den-sity is increasing.
GENERAL DESCRIPTIONAlong with such factors as availability of capi-tal and technologies, availability of workforce is one of the three key urban development deter-minants. Riga’s attractiveness in this respect is outspokenly high – the number of population of Riga metropolitan area is the largest in the Baltic States, the population density in Riga and Pieriga region is explicitly higher than in other cities and regions, and the largest part of higher education institutions are located here, etc. The statistical data of the State Employment Agency shows that the employment situation in Riga and Pieriga re-gion is significantly better than in other regions of Latvia – in the autumn of 2016 the unemployment rate in Riga is only 4.8 % and in Pieriga region – 5.1 %, while the average unemployment rate in Latvia is 8.0 %. This shows that Riga is largely able to balance demand and supply of labour, as it has essential socio-economic pre-conditions.
In foreseeable future the dominance of Riga in the national economy will remain: Riga is the largest city in the Baltic States, here are located the major national higher education institutions and public administration institutions, Riga is a transport highway node, the international air-port and the unfreezing port are located nearby.
BUSINESS ACTIVITYNumber of EnterprisesRiga is the most active business region in Lat-via – if on average there are 86 companies per 1 000 inhabitants in Latvia, then in Riga this indicator is 112. Overall there are 71 465 eco-nomically active enterprises in Riga and during the last four years this number has increased by 18 %, while in Latvia on average – about 12 %. 58 % of all companies registered in Latvia are located in Riga.42
Economically active statistical units in Riga43
Although the number of newly-established en-terprises has decreased in recent years (6 305 new enterprises were registered in 2016), still the number of enterprises established in Riga exceeds the number of enterprises winded up that indirectly suggest that the viability of enter-prises working in Riga is larger than those which has been established in other regions of Latvia. In 2016 of all the newly established enterprises in Latvia 69 % were registered particularly in Riga.
Largest EnterprisesList of the largest enterprises by turnover (million EUR) in Riga in 201547
1 LLC URALCHEM Trading 1 133
2 LLC RIMI LATVIA 785
3 JSC Latvenergo 521
4 LLC ORLEN Latvija 460
5 JSC Latvijas Gāze 445
6 LLC NESTE LATVIJA 407
7 JSC ELKO GRUPA 368
8 LLC Circle K Latvia 358
9 LLC LDZ CARGO 333
10 LLC TransBaltic OIL 318
42 Central Statistical Bureau. Available: www.csb.gov.lv43 Central Statistical Bureau. Available: www.csb.gov.lv
0
10000
20000
30000
40000
50000
60000
70000
2012 2013 2014 2015
Self-employed persons
Commercial companies
Individual merchants
Number of Employees in Enterprises92 % of companies registered in Riga employ not more than 9 persons, and in the last three years the number of such companies has incre-ased by 13 %. The number of large companies employing more than 250 people has increa-sed by 8 %, besides 66 % of all large compa-nies of Latvia are located in Riga.45
Economically active enterprises in Riga by size group according to the number of employees46
10000
8000
6000
4000
2000
0
2012 2013 2014 2015 2016
Number of newly established enterprises in Riga44
5000
6000
7000
2013 2014 20150-9
20-49
50-249
250+
10-19
44 Lursoft statistics. Available: www.lursoft.lv 45 Central Statistical Bureau. Available: www.csb.gov.lv46 Central Statistical Bureau. Available: www.csb.gov.lv47 Lursoft statistics. Available: www.lursoft.lv
11 JSC Sadales tīkls 292
12 LLC Samsung Electronics Baltics 292
13 JSC Latvijas valsts meži 262
14 LLC Severstal Distribution 251
15 LLC AMIC Latvia 236
16 State JSC Latvijas dzelzceļš 218
17 LLC Mikrotīkls 202
18 JSC LATVIJAS FINIERIS 194
19 SE Moller Baltic Import 194
20 JSC RĪGAS SILTUMS 173
2120
Priority SectorsSustainable Development Strategy of Riga until 2030 as one of the long-term development ob-jectives has defined the development of inno-vative, open and export-capable economy, and furthermore as the basis of economy of the city it has defined such priority sectors as trans-port and logistics, chemical industry, computer technology, electrical engineering, profession-al, scientific and technical services, production of metal products and mechanical engineering, tourism and education.48
STRUCTURE OF THE ECONOMY
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Riga is strategically im-portant transport hub in the European transport network, providing ac-cess to the European Union and the Eastern markets in Russia, the Commonwealth of In-dependent States and Asia. Traffic infrastruc-ture in the city of Riga, both geographically and by various modes of
transport is organised and managed efficiently – it facilitates safety and continuity of the flow of goods and passengers, as well as the mutual complementarity of transport infrastructure. Riga is the transport and logistics centre of the region – the location in the international impor-tance railway and road
intersection, as well as availability of the inter-national airport and the port are essential fac-tors that determine the economic competitive-ness of Riga in the inter-national context. Several logistics and business parks (Dominante Park in Kekava, NP Logistics in Bergi, etc.) are lo-cated in the immediate
vicinity of Riga. For ma-jor world markets Riga is easy reachable – by plane Riga is accessi-ble from more than 80 cities around the world, by train – from Russia, Belarus and Estonia, by ferry – from Sweden, by bus – from more than 100 cities in Europe.
About 2 million tourists are visiting Riga every year and each year the number of tourists shows increas-ing trend. Mostly tourists from Germany, Russia, Finland and Estonia are visiting Riga, but the larg-est increase is observed in the number of tourists from Ukraine, Spain, Great Britain and Poland. Over-all, there are almost 130 accommodation places in
Riga providing more than 15 thousand beds. Bed oc-cupancy rates (the high-est occupancy is observed in august – at about 75 % level) show that Riga has still great growth opportu-nities in attracting tourists. In recent years the quality of infrastructure available in Riga hotels is quali-tatively improved. The number of 4-star hotels and respectively number
of beds are gradually in-creasing and the number of guests served therein is growing even faster. Riga is an important transport hub in the Baltic States. For foreign travellers the capital city of Latvia is accessible using air trans-port and water transport (regular ferry traffic in the direction Riga – Stock-holm and cruise ships), and international railway
transport (where the most important routes are Mos-cow and St.Petersburg) and international bus transport. The substantial growth potential is linked to the development of Riga passenger port. After dredging, all the required infrastructure is available in the port of Riga ensur-ing service to big cruise ships in the city centre.
MA
NU
FAC
TU
RIN
G O
F C
OM
PU
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RS The computer manufac-
turing is one of the high-tech industries with high added value and high ex-portability. It is confirmed also by the statistics of the industry – in recent years, the computer and electri-cal engineering industry in Latvia shows significant growth trends, besides more than 70 % of pro-duction is exported.
In 2015, 4 180 compa-nies were working in the ICT sector, most of which work in the field of computer program-ming. Over the last three years, the number of companies working in ICT sector has in-creased by 18 %. The most explicit growth
is observed in the field of computer program-ming, where the num-ber of companies has increased by 24 %, as well as in the field of information services, where increase is up to 19 %. Riga provides all the prerequisites for the successful development
and exportability of the ICT sector – skilled workforce (education, experience, language skills) and highly devel-oped ICT infrastructure (Latvia stands on 7th place in the world by the average Internet con-nection speed and on 8th place in the world
by broadband connec-tions, for several years Riga is the capital city of free wireless Internet in Europe) with high cost efficiency (labour and infrastructure costs, real and virtual accessibility of the city) are available here.
CO
NS
TR
UC
TIO
N The growth of the construction sector is closely linked with the country’s overall economic development – till 2007, the industry experienced significant growth, while during the economic crisis and post-crisis time the development of the sector was reluctant
and moderate. It is expected that starting to use funding of the European Union fund 2014-2020 program-ming period in 2017 will give a new impulse for the development of the construction sector.
Forests are one of the main strategic resourc-es of Latvia. Latvia is one of the six richest countries in the EU by forestland, since the total area of forests accounts for 50 % of the country. The climate conditions in Latvia and the exit to the Baltic Sea favourably impacts development of wood
processing industry, including its export growth. Advantage of Riga and Latvia in development of wood processing industry is the availability of suit-able timber for further processing, as well as lower labour costs. The wood processing indus-try already now is one of the leading sectors of
the economy of Latvia – it makes up to 27 % of the total manufacturing output. Further growth opportunities are rated to both the export de-velopment and the tim-ber further processing, creating higher value added products.
INFO
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NO
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Latvia’s geographical lo-cation is strategically ad-vantageous for both food and raw materials markets – wide agricultural (as well as fisheries) raw material basis is available here. Whereas, the long-term ex-perience in the field of ag-riculture provides qualified and knowledgeable human resources with significant work and scientific experi-ence in the food industry.
It is confirmed also by internationally known Lat-vian food industry brands – Laima, Rigas Balzams, Aldaris, Rigas sprotes, etc. Land resources available in Latvia for intensifying ag-ricultural activities provide ample opportunities for the development of food and beverage production, exporting in the European Union markets and beyond its borders.
FOO
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BEV
ER
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PR
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UC
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N
48 Sustainable Development Strategy of Riga until 2030. Available: www.sus.lv/sites/default/files/media/faili/strategija_2014-2030.pdf
2322
Types of Business ActivityMost enterprises located in Riga work in ser-vices (45 %) and trade (21 %) spheres. 7 % represent the construction field, but 6 % – the manufacturing industry. Over the last four years, the biggest increase in the number of en-
Non-financial InvestmentsIn 2015 non-financial investments in Riga amounted to 2.5 billion euros. Although in the past four years overall amount of investments in Latvia has dropped by 8 %, in Riga it has in-creased by 15 %. Respectively, the proportion of non-financial investments of Riga in overall indicator of Latvia has increased as well – if four years ago 46 % of all non-financial invest-ments of Latvia were invested in Riga, then in 2015 – already 58 %.
The mechanical engi-neering and metalwork-ing industry is one of the leading industries in Latvia. The industry produces around 17 % of the total turnover of the manufacturing industry and around 21 % of the total ex-port. The mechanical engineering and met-alworking industry is
highly export-oriented, on average about 80 % of production are ex-ported. According to the external trade statistics of Latvia, the output of the industry is export-ed to more than 100 countries of the world. Overall, around 70 % of the production is dis-tributed in the countries of the European Union.
Since 2010 the elec-tronics and electrical engineering industry is the fastest growing manufacturing sector in Latvia, whose share in total manufacturing output is about 7 %. More than 90 % of all output of electrical engi-neering and electronics companies (computers, electronic and optical
equipment) are export-ed. The main export markets of the industry are the European Union comprising 64 % of the total exported produc-tion. The capacity load level in the industry remains around 70 %, which shows that the industry still has great growth potential.
INVESTMENTS
MEC
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NIC
AL
EN
GIN
EE
RIN
G
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D M
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RK
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ELE
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terprises has been in the spheres of education (+51 %), finance and insurance (+23 %), as well as environment and energy (+22 %) and construction (+22 %).49
Economically active enterprises in Riga by main kind of activity (NACE Rev. 2) in 201550
Trade
15 016
Services
32 064Other
9 336
Human health and social work activities
2 133Construction
4 783
Environment and energy
288
Agriculture, Forestry and
Fishing
756
Public administration
2
Financial and insurance activities
1 172
Education
1 463
Not defined
458Industry
3 994
49 Central Statistical Bureau. Available: www.csb.gov.lv50 Central Statistical Bureau. Available: www.csb.gov.lv
The largest sectors where non-financial invest-ments were made in Riga in 2015 are transport and storage sphere (19 % of total investments) and real estate activities (18 %). During the last three years the largest non-financial in-vestments growth is observed in the field of education (+64 %) and professional, scientific and technical services (+47 %).
Non-financial investments in Riga by main kind of activity (at current prices, thousand EUR)52
3000
2500
2000
1500
1000
500
0
2012 2013 2014 2015
6000
5000
4000
3000
2000
1000
0
2012 2013 2014 2015 2016
Accumulated Foreign Direct InvestmentsIn 2016 accumulated foreign direct investments in the share capital of companies registered in Riga amounts up to 5.8 billion EUR and in the last five years they have increased by overall 22 %.
Accumulated foreign direct investments in share capital of companies registered in Riga (billion EUR)53
Agriculture, forestry and fishing
Mining and quarrying
Manufacturing
Electricity, gas, steam and air conditioning supply
Water supply, sewerage, waste management and remediation activities
Construction
Wholesale and retail trade; repair of motor vehicles and motorcycles
Transportation and storage
Accommodation and food service activities
Information and communication
Financial and insurance activities
Real estate activities
Professional, scientific and technical activities
Administrative and support service activities
Public administration and defence; compulsory social security
Education
Human health and social work activities
Arts, entertainment and recreation
Other service activities
0 100000 200000 300000 400000 500000
51 Central Statistical Bureau. Available: www.csb.gov.lv52 Central Statistical Bureau. Available: www.csb.gov.lv53 Lursoft statistics in the Riga Strategy Monitoring System. Available: www.sus.lv/lv/2-ekonomika-un-finanses/23-investicijas
Non-financial investments in Riga (at constant prices of 2015, million EUR)51
2524
Employment and UnemploymentThe proportion of economically active popula-tion in Riga makes up 71.2 %, but the propor-tion of employed population –65.9 % (in abso-lute figures respectively – 337.9 thousand and 312.7 thousand). Over the last four years, the share of economically active population has in-creased by 2 %, but employed – about 6 %.54 The unemployment rate in the last five years in Riga has declined three times (from 15.1 % in 2010 to 4.8 % in 2016).55
According to the data of the Central Statisti-cal Bureau, in Riga on average there are overall 483 000 job places a year, of which 153 thou-sand are in the public sector and 330 thousand – in the private sector. During the last five years, the number of jobs increased by 21 % in the pri-vate sector, and about 3 % – in the public sec-tor. The free vacancy rate in Riga is about 2 % in the public sector and less than 1 % in the priva-te sector.
Most of the population of Riga is employed in trade, accommodation and food services (21.3 %), financial, insurance, science, admi-nistrative services and real estate services (16.2 %), transport, storage, information and communication services (15.8 %), as well as processing and mining industry and other in-dustries (12.7 %). Over the last five years the share of employees in financial, insurance, science, administrative services and real esta-te services has increased (+4.5 %), but it has decreased in trade, accommodation and food services (-3.9 %).
Employed by economic activity (NACE Rev. 2.), on average per year (time period – 2010-2016), share %56
Wages and Salaries of EmployeesOver the last five years, the average monthly wages and salaries of employees in Riga has in-creased overall by 22 % and in year 2016 it was 949 EUR. Wages in the private sector has grown the most rapidly (+25 %, 921 EUR), but still in the public sector wages are higher – 1 005 EUR.
ECONOMIC ACTIVITY OF POPULATION
Level of Education of Economically Active PopulationStatistical data about the level of education of economically active population of Riga shows that 43 % of the population of the capital has higher education, 31 % – vocational education or professional secondary education, 20 % – general secondary education, and only 5 % – basic education. During the last ten years, the proportion of those who have higher education has increased by about 10 %.
Level of education of economically active population of Riga in 2016, share %57
Air TransportThe Riga International Airport serves about 5 million passengers a year. The number of transfer/transit passengers is about 25 % of the total number of served passengers, and the most popular destinations of passengers traveling through the Riga International Airport are Tallinn, Vilnius, Helsinki, Stockholm and Moscow. Of the total number of passengers, almost 49 % are served by the national air-line airBaltic and 18 % – by the airline Ryanair. In recent years, the number of travellers has rapidly increased for airlines Ryanair, Wizz Air, Aeroflot and Norwegian Air Shuttle. The Riga International Airport is the largest air transport junction in the Baltic States servicing 68 thou-sand aircrafts and nearly 20 thousand tons of air cargo in 2016.
TRANSPORT AND LOGISTICSPassenger arrivals and departures at the airport Riga by country in year 2015 (top 10 destinations60)61
Private sector
Public sector
Average monthly wages and salaries, EUR58
2012 2013 2014 2015 2016
1000
800
600
400
200
0
50
40
30
20
10
0Basic education or less than basic education
Vocational education or professional secondary education
General secondary education
Higher education
54 Central Statistical Bureau. Available: www.csb.gov.lv55 State Employment Agency. Available: www.nva.gov.lv 56 Central Statistical Bureau. Available: www.csb.gov.lv57 Central Statistical Bureau. Available: www.csb.gov.lv
Trade, accommodation and food service activities
Transportation, storage, information and communication
Manufacturing, mining and quarrying, other industry
Education
Construction
Human health and social work activities
Public administration and defence; compulsory social security
Agriculture, forestry and fishing
Other services
0 5 10 15 20 25
Financial, insurance, scientific and administrative activities; real estate activities
2012 2013 2014 2015 2016
Cargo (tons) 32 953 53 540 32 984 18 863 19 759
Flights 68 572 67 407 65 819 68 078 68 061
Passengers (million) 4.77 4.79 4.81 5.16 5.40
Cargo, flights and passengers at the Riga International Airport59
0 100000 200000 300000 400000 500000 600000 700000 800000
DE Germany
UK United Kingdom
RU Russian Federation
NO Norway
FI Finland
SE Sweden
LT Lithuania
EE Estonia
IT Italy
DK Denmark
+26
+43
-7
+6
-23
+12
-10
0
-28
+2
Total numberChanges
2015/2012, %
58 Central Statistical Bureau. Available: www.csb.gov.lv59 Riga International Airport. Available: www.riga-airport.com 60 Passenger departures - according to the first point of landing, passenger arrivals - according to the last point of departure.61 Central Statistical Bureau. Available: www.csb.gov.lv
2726
Top 10 airlines in 2015 by the number of transported passengers62
Structure of cargo handled at the Port of Riga in 2016 (thousand tons; share %)66
Water TransportOn average about 70 thousand of cruise ship passengers and more than 500 thousand fer-ries passengers are served in the port of Riga a year. In 2017, the ferry Tallink traffic will be pro-vided every day, which means approximately 180 additional arrivals of ships during a year. The number of served cargo ships is almost 4 thousand a year and cargo turnover is more than 40 thousand tons. 59 % of all handled car-go in the port is bulk cargo, while 23 % – liquid
cargo. Coal makes 35 % of the cargo, 23 % – oil products. The Free Port of Riga envisages that in 2017 Russia will continue to redirect handling energy resources through their ports, thus reducing the amount of cargo shipped via the port of Riga. Consequently, amount of coal handled in the port would drop about 18-19 %, and oil products – about 20-21 %. At the same time, amount of handled containerized cargo would rise around 2-3 %.63
Passengers served in the Port of Riga64
2012 2013 2014 2015 2016
Number of ships entering the port 92 65 57 64 62
Number of passengers of cruise ships 83 091 66 968 59 520 69 164 68 500
Number of passengers of ferries 731 935 770 697 677 025 457 079 -
Cargo handled in the Port of Riga65
2012 2013 2014 2015
Number of ships served 3 956 3 850 3 797 3 587
Turnover of ships (thousand tons) 36 051 35 466 41 080 40 055
62 Riga International Airport. Annual Report 2015. Available: www.riga-airport.com/lv/main/par-lidostu/gada-gramata 63 Information of Freeport of Riga. Available: http://rop.lv/lv/jaunumi/5993-apstiprinats-rigas-brivostas-parvaldes-budzets-2017-gadam.html 64 Freeport of Riga. Available: www.rop.lv 65 Freeport of Riga. Available: www.rop.lv
66 Freeport of Riga. Available: www.rop.lv 67 Annual Report of the Riga Municipality. Available: https://pasvaldiba.riga.lv 68 Annual Report of the Riga Municipality. Available: https://pasvaldiba.riga.lv 69 Central Statistical Bureau. Available: www.csb.gov.lv 70 Central Statistical Bureau. Available: www.csb.gov.lv71 State JSC Latvijas Valsts ceļi. Available: www.lvceli.lv
Land TransportIn 2015 146.8 million passenger were trans-ported by trolley-buses, buses and trams in Riga public transport, but more than 10 million passengers – by microbuses.67 In 2015 1.8 mil-lion passengers were served in the Riga Inter-national Coach Terminal. Number of users of municipal paid parking lots reached 4.4 million.
Riga public transport and parking lots (million)68
2012 2013 2014 2015
Number of passengers in trams, trolley-buses, buses 141.3 150.1 150.5 146.8
Number of passengers in microbuses 10.0 7.8 - 10.4
Number of users of municipal paid parking lots - - 3.9 4.4
Number of passengers in the Riga Couch Terminal69 2.1 2.1 2.0 1.8
The amount of loaded road cargo in Riga is more than 7.5 million tons, but unloaded cargo in Riga is more than 10.1 million tons. Over the last four years, the amount of loaded cargo has increa-sed by 12 %, but unloaded cargo – by 9 %.
Inland road cargo transport (millions tons)70
According to the data of the Central Statistical Bureau, by the end of 2015 in Riga 208 852 cars were registered (of which 169 017 personal prop-erty), 32 610 trucks and 1 694 buses. During the last four years the number of registered cars has increased by 10 %, but trucks – by 13 %.
The data of the state JSC Latvijas Valsts celi (Latvian State Roads) indicates that in 2015 the greatest traffic intensity in the main road net-work of Latvia was on the roads close to Riga. On average 40 thousand cars a day use the road in the direction to Jurmala, 36 thousand – in the direction to Sigulda, over 20 thousand – to Ogre, Kekava, Adazi and Incukalns directions.71
Liquid cargo
Bulk cargoGeneral cargo
TimberContainerized
cargo
Others
CoalChemical freight
Oil productsLoaded in Riga Unloaded in Riga
2012 2013 2014 2015
12
10
8
6
4
2
0
2 507 122Air Baltic Corporation
196 223Norwegian Air Shuttle
950 030Ryanair
107 698SmartLynx Airlines
453 653Wizz Air
94 525Finnair
209 422Lufthansa
82 206Turkish Airlines
197 768Aeroflot
50 865LOT Polish Airlines
8 166
22 3936 511
2 624 4 059
2 812
8 102
13 292
6 181
28
BUSINESS AND INVESTMENT ENVIRONMENT
E-CommerceIn 2016, every second citizen of Riga had made purchase on the Internet, and the last four ye-ars the share of such individuals has increased by slightly more than 10 %. On the Internet ci-tizens of Riga mainly purchased event tickets, clothes, household goods, as well as accom-
TECHNOLOGIES
28
Usage of Computers and the InternetThe absolute majority of citizens of Riga use computers and the internet. 82 % of the popu-
lation of Riga use the Internet regularly, and it is almost 10 % more than three years ago. While during the last three years the Internet use in mobile phones or smartphones has increased by 23 % – from 29 % in 2013 to 52 % in 2016.
Usage of computers and the Internet among citizens of Riga72
2013 2014 2015 2016
Using computer regularly 74.5 77.0 80.4 No data
Using the Internet regularly 74.9 76.8 81.7 82.1
Using the mobile phone for accessing the Internet 29.4 37.2 48.5 51.9
modation for trips. Mostly goods and services were purchased in the Latvian internet shops, but 48 % of purchases were made in other Eu-ropean Union countries, and 41 % – in the rest of the world. During the last four years explicit-ly – by 20 % – has increased the share of in-dividuals who purchase goods and services on the Internet outside the European Union.
Individuals in Riga, who have bought or ordered any goods or services for private use over the Internet (%)73
Goods and services bought over the Internet by citizens of Riga in 2016 (top 10 purchases)74
0 10 20 35 40 50
Tickets for events (concerts, theatre, cinema, etc.)
Clothes, sports goods
Household goods (furniture, toys, etc.)
Holiday accommodation (hotels, camp sites, etc.)
Other travel arrangements (transport tickets, car hire, etc.)
Food or groceries
Computer hardware
Books, magazines, newspapers (including e-books)
Telecommunication services (TV, broadband subscriptions, fixed line or mobile phone subscriptions etc.)
Electronic equipment (photo or video cameras, mobile phones, TV, stereo and DVD players)
72 Central Statistical Bureau. Available: www.csb.gov.lv 73 Central Statistical Bureau. Available: www.csb.gov.lv 74 Central Statistical Bureau. Available: www.csb.gov.lv
2013 20152014 2016
0
10
40
20
50
30
60
3130
Riga is an open and attractive business environ-ment for foreign investments. The most import-ant factors that contribute to the attractiveness of the city for foreign investors are the favourable geographical location, productive human resourc-es, relatively low cost of doing business, good cost efficiency indicators, sorted and liberal legislation, as well as the availability of the infrastructure. Riga has well developed transport and energy resourc-es infrastructure, while information and commu-nications technology infrastructure is one of the most highly-developed in all the Nordic region.
Latvia is the member state of the European Union and the Eurozone that ensures the free movement of goods, services, capital and la-bour. In recent years, growth in Latvia is one of the most fastest in the European Union. Within 2014-2020 European Union funds program-ming period it is planned to invest 4.4 billion EUR in the growth and development of Latvia. Latvia is a full member in all the world’s major eco-nomic and political organizations, including the North Atlantic Treaty Alliance (NATO) and the World Trade Organization (WTO). In 2016 Latvia also became a full member of the Organisation for Economic Cooperation and Development (OECD). The assessments of international cred-it rating agencies describe the financial situation of the Riga city as stable. In the end of 2016 the credit rating agency Standard & Poor’s defined rating of Riga for long-term and short-term ob-ligations as BBB+/A-2 level with stable rating future outlook. The credit rating agency Stan-dard & Poor’s assesses positively the financial stability of the city and the three-years budget planning of the municipality.75
In the magazine Forbes created list of the best countries for business Latvia stands in 27th place76, while in World Bank Doing Business rank-
ing in 2017 – 14th place77. In the World Bank as-sessment the most positive aspects of the busi-ness environment in Latvia are getting a credit (7th place), paying taxes (15th place) and staring a business (22nd place), but the most significant improvements have occurred in the provision of electricity infrastructure and availability of cred-its. The Foreign Investors Council in Latvia and the Stockholm School of Economics in Riga (SSE Riga) jointly carried out study FICIL Sentiment Index 2015-2016 on development of investment climate indicated that in viewpoint of foreign in-vestors labour supply and infrastructure support are improving in Latvia.78 While the assessment of experts included in the Global Business Mon-itoring shows that the most positive aspects of the business environment in Latvia are: physical infrastructure, business legal framework, busi-ness education, and also state support for doing business.79
Indicators of Latvia in World Bank Doing Business 2017 study80
Commercial Law
In this law a merchant, commercial activity, the commercial register and other with commercial activities (entrepreneurship) related terms, con-ditions, and limitations are defined. The Com-mercial Law in key aspects complies with legal practices to similar laws and regulations used in the most countries of the European Union.
Law on Aid for Start-up Companies
The aim of the law is intended to promote the establishment of new enterprises in Latvia, thus facilitating using research as well as innovative ideas, products, or processes in economic activ-ities (commercialization of research products).
Micro-enterprise Tax Law
The aim of the law is to reduce the administra-tive and tax burden to micro-enterprises, es-pecially in the period of beginning of economic activities, as well as in sectors with low level of income potential, while respecting the collec-tive interests of society for the fair competition and the social security.
Law on Taxes and Duties
The law defines forms of taxes and fees and a procedure for estimating, collecting, levying taxes and fees, rights, duties and responsibili-ties of tax and fee payers, and administration authorities, as well as, taxpayer registration procedure, and an appeal procedure against decisions on taxes and fees issues.
Labour Law
It determines the employee’s and the employ-er’s labour relations: the general principles of
the employment agreement, the employee’s and employer’s rights and obligations, the pay-ment regulation, the working and rest time, la-bour dispute settlement procedure, the proce-dures for employment termination, etc.
Insolvency Law
The purpose of this law is to promote the hon-ouring of the obligations of a debtor in financial difficulties and, where possible, the renewal of solvency, applying the principles and lawful solutions specified in the law.
Customs Law
The purpose of this law is to determine the is-sues of national competence of Latvia in cus-toms matters, insofar as there are no directly applicable European Union legislation.
Law on the Safety of Goods and Services
The purpose of this law is to achieve the pro-duction and circulation of goods and the pro-vision of services that is safe, non-harmful to human life, health and the property of a person, as well as non-harmful to the environment.
Competition Law
The purpose of this Law is to protect, maintain and develop free, fair and equal competition in the interests of the public in all economic sectors by restricting market concentration, imposing as a duty the termination of activi-ties prohibited by the laws and regulations gov-erning competition, and by calling to account persons at fault in accordance with procedures laid down in laws and regulations.
GENERAL DESCRIPTION
75 Information of the Riga municipality. Available: https://pasvaldiba.riga.lv 76 Forbes. Best Countries for Business. Available: www.forbes.com/best-countries-for-business/list/ 77 The World Bank. Doing Business Economy Rankings 2017. Available: www.doingbusiness.org/rankings 78 Arnis Sauka. FICIL Sentiment Index 2015-2016. Development of the investment climate in Latvia: the viewpoints of foreign investors. Available: www.
sseriga.edu/en/centres/csb/sentiment-index/ 79 Donna Kelley, Slavica Singer, Mike Herrington and the Global Entrepreneurship Research Association (GERA). Global Entrepreneurship Monitor
2015-2016. Available: www.gemconsortium.org/report/49480 80 World Bank. 2017. Doing Business 2017: Equal Opportunity for All. Washington, DC: World Bank. DOI: 10.1596/978-1-4648-0948-4. License: Cre-
ative Commons Attribution CC BY 3.0 IGO. Available: www.doingbusiness.org/~/media/wbg/doingbusiness/documents/profiles/country/lva.pdf
Riga attracts about 80 % of all direct invest-ments in Latvia and more than 50 % of all non-financial investments. In 2016 accumula-ted foreign direct investments in the share ca-pital of the companies registered in Riga is 5.8 billion. Most of the investment flows into Riga from Sweden, the Netherlands and Norway.
BUSINESS ENVIRONMENT LEGAL FRAMEWORK
Starting a business (22) Dealing with Construc-
tion Permits (23)
Getting Electricity (42)
Registering Property (23)
Getting Credit (7)
Resolving Insolvency (44)
Enforcing Contracts (23)
Trading across Border (25)
Paying Taxes (15)Protecting Minority Investors (42)
3332
Law on the Annual Financial Statements and Consolidated Financial Statements
The law defines the content of the annual state-ment, the procedures for preparation, audit (re-
vision), approval, submission, and publication thereof, as well as the amount of information to be disclosed in the annual statement, reliefs and exemptions in distribution according to categories of companies, etc.
STARTING A BUSINESSThe World Bank Doing Business 2017 study shows that Latvia stands in the high 22nd place in business start-up rating. In Latvia in total 4
Summary of time, cost and procedures for starting a business in Latvia
No. Procedure Time to Complete
Associated Costs
The registration of the enterprise can be done onsite submitting document in the Register of Enterprises, or the re-gistration procedure can be done online by signing all establishment documents with a secure electronic signature (https://www.latvija.lv/Epakalpojumi/EP119/Apraksts) and sending all signed documents to [email protected]. Only ci-tizens of the Republic of Latvia or persons with residence permit can obtain a secure electronic signature.
1. Notarisation of documents to be submitted
Institution: public notary or the Register of Enterprises
(1) Registration application,
(2) consent to the election to the management board and
(3) Register of the shareholders must be notarized by a public notary or by an official of the Register of Enterprises or signed by secure electronic signature.
1 day 26.06 EUR (by the public no-tary) or 7.11 EUR (by the official of the Register of Enter-prises) per signature
2. Open a bank account and receiving bank statement
Institution: Bank
Most banks do not levy a fee for opening a bank account, but a fee needs to be paid to obtain a bank statement on the payment of the share capital. For opening the bank account, the foundation agreement and the company charters need to be submitted, as well as the share capital needs to be paid.
1 day 10 EUR
No. Procedure Time to Complete
Associated Costs
3. Registration of the enterprise in the Register of Enterprises
Institution: the Register of Enterprises
The following company establishment documents must be submitted to the Company Register:
• Registrationapplication(notarizedorsignedwithasecureelectronicsignature);
• Foundationagreement;
• Companycharter;
• Bankstatementonthepaymentofthesharecapital;
• Registeroftheshareholders(notarizedorsignedwithasecureelectronicsignature);
• Consenttotheelectiontothemanagementboard(notarizedorsignedwithasecure electronic signature);
• Noticeofthemanagementboardonlegaladdress;
• Consentoftheownerofthepropertyofthelegaladdress(iftheapplicationissigned by the person who owns the legal address of the property, consent is not required);
• Documentcertifyingpaymentofstateduty;
•Documentcertifyingpaymentofthepublicationfee.
1-3 days If the share capital is more than 2 800 EUR – for registration within 3 days –177.03 EUR; for registra-tion within 1 day – 477.03 EUR
If the share capital is less than 2 800 EUR – for registration within 3 days –34.23 EUR; for registra-tion within 1 day – 74.23 EUR
4. Value added tax (VAT) payer registration (if applicable)
Institution: the State Revenue Service
Application for registration in the VAT payers register can be submitted:• Electronically,viatheElectronicDeclarationSystemoftheStateRevenueService
(access to the system is provided to enterprises registered in the Register of Enterprises);
• electronically,applicationsignedwithasecureelectronicsignatureissenttovid@vid.gov.lv;
• onsite,submittinganapplicationinanyoftheStateRevenueService’scustomersservice centres;
• onsite,submittinganapplicationinanyregionalofficeoftheRegisterofEnterprises.
5 working days
No charge
For more information on the establishment and implementation of entrepreneurship in Latvia see:
81 World Bank. 2017. Doing Business 2017: Equal Opportunity for All. Washington, DC: World Bank. DOI: 10.1596/978-1-4648-0948-4. License: Creative Commons Attribution CC BY 3.0 IGO. Available: www.doingbusiness.org/~/media/wbg/doingbusiness/documents/profiles/coun-try/lva.pdf
procedures need to be undertaking for starting a business, and it takes on average 5 days.81
Latvian Register of Enterprises: www.ur.gov.lv
The State Revenue Service: www.vid.gov.lv
The Investment and Development Agency of Latvia: www.liaa.gov.lv
These and other normative acts applicable to commercial activities are available on the website www.likumi.lv.
3534
The system of taxes and fees in the Republic of Latvia is regulated by the Law on Taxes and Fees. In Latvia, the system of taxes and fees consists of state taxes, fees and local govern-ment fees and directly applicable taxes set in the European Union regulatory enactments. In accordance with the law, in Latvia there are the following state taxes and corresponding laws on taxation:
1) personal income tax – the Law on Personal Income Tax;
2) enterprise income tax – the Law on Enter-prise Income Tax;
3) immovable property tax – the Law on Im-movable Property Tax;
4) value added tax – the Law on Value Added Tax;
5) excise duty – the Law on Excise Duties;
6) customs duty – the Customs Law and other customs procedures regulatory acts;
7) natural resources tax – the Natural Resour-ces Tax Law;
8) lotteries and gambling tax – the Law on Lottery and Gambling Fee and Tax;
9) state social insurance mandatory contribu-tions – the Law on State Social Insurance;
10) vehicle tax – the Law on the Vehicle Opera-tion Tax and Company Car Tax;
11) electricity tax – the Electricity Tax Law;
12) micro-enterprise tax – the Micro-enterpri-se Tax Law;
13) vehicle operation tax – the Law on the Ve-hicle Operation Tax and Company Car Tax;
14) company car tax – the Law on the Vehicle Operation Tax and Company Car Tax;
15) subsidized electricity tax – the Subsidized Electricity Tax Law;
16) solidarity tax – the Solidarity Tax Law.
In addition to the state taxes and fees, each local government has the right to determine taxes and fees applicable in its administrative territory (fee for placing advertisements, pos-ters and announcements in public places, fees related to construction, fee on local government infrastructure maintenance and development, etc.).
In World Bank Doing Business 2017 study, Lat-via stands at 15th place in the ranking of 190 economies on the ease of paying taxes.82
Riga is the most active region in business in Latvia – here are 112 companies per 1 000 cap-ita (average indicator in Latvia – 86). In 2016 6 305 new companies were registered in Riga and it makes up to 69 % of all new companies in Latvia.84 European Start-up Initiative survey carried out among Europe-based company founders shows that the Baltics is one of the most attractive regions for business establish-
TAXES AND FEES SYSTEM AVAILABILITY OF COMMERCIAL PREMISES
SUPPORT FOR STARTING AND DEVELOPING BUSINESS
82 World Bank. 2017. Doing Business 2017: Equal Opportunity for All. Washington, DC. Available: www.doingbusiness.org/~/media/wbg/doing-business/documents/profiles/country/lva.pdf
83 Colliers International. Baltic States Property Snapshot Q3 2016. Available: www.colliers.com/-/media/files/emea/latvia/research/2016/col-liers_baltic_quarterly_report_3q16_final_sec.pdf
84 Lursoft. Available: www.lursoft.lv/lursoft_statistika/?&id=210 85 European Start-up Initiative. Startup Heatmap Europe. Available: www.startupheatmap.eu/assets/pdf/report_startupheatmap_europe_publish.pdf
ment and Riga stands in 22nd place among the most attractive European cities for estab-lishing a company.85 Increasing the number of new companies and support for small and me-dium-sizes enterprises is one of the priorities of the municipality in improvement of the busi-ness environment. For business start-up and its development wide and varied national and local support is available.
Availability of office premises in Riga83
Availability of industrial pre-mises in Riga
Availability of retail premises in shopping centres in Riga
6-7%
6-7%
Share of Class A free office
premises
Payment for rent of Class A office premises
13.0 – 16.0 EUR/m2
Payment for rent of Class B1 office premises
9.0 – 12.0 EUR/m2
Payment for rent of retail premises
3.5 – 4.5 EUR/m2
Payment for warehouse rent
30.0 – 55.0 EUR/m2
Share of Class B1 free office
premises
5.1% 4.6%Share of free retail premises
in shopping centres
Share of free warehouse
premises
3736
Grant programme Atsperiens (Take-off)
Since 2019, the Riga City Council, in cooperation with Swedbank implements a grant programme Atsperiens aiming to promote the establishment of new, innovative enterprises and innovative de-velopment of existing enterprises in Riga admin-istrative territory. Within the programme it is pos-sible to receive co-financing of 80 % for covering various expenses of new merchants – for pur-chasing specific technical equipment and licenc-es, accounting and legal-consultant service fees, website development, specific employees’ train-ing, creating marketing materials, costs of rent and improvements of premises, etc. The maxi-mum grant available for one merchant is 15 000 EUR. The open call of the grant programme is organised twice a year – in spring and in autumn.
So far sixteen project calls have been organised, in total 1 575 business ideas were submitted and support was awarded to 139 companies receiv-ing funding more than 152 million EUR. Within the programme such business ideas were sup-ported as – manufacturing of wakeboard, long-board, snowboard and winter skis, manufactur-ing of bicycle locks uSkunk, robotic constructor SumoBoy, board game Mission to Mars 2049, kinetic data collecting Track.it, production of granite accessories, manufacturing of exclusive soy wax candles, production of the heat accumu-lating stoves, etc.
More information: www.atsperiens.lv
Social entrepreneurship
The Welfare Department of the Riga City Coun-cil are currently implementing in Latvia the only social entrepreneurship grant programme for
promotion of employment of social exclusion risk group in Riga, whose aim is to stimulate, initiate or develop and implement a sustainable development of societies and foundations or merchants to provide employment opportuni-ties, including creating new or improving exist-ing job places for social exclusion risk groups. In 2016 in total four projects were supported, each being given a grant of 4 000 - 7 000 EUR..
More information: www.ld.riga.lv, www.socialauznemejdarbiba.lv
Riga film fund
The Riga municipality co-financed programme Riga Film Fund aims to encourage shooting of foreign films in Riga and Latvia. Co-financing is planned for Latvian and foreign co-produced film projects whose shooting is planned in Riga or in Latvia, thus promoting foreign investment attraction, job creation, the development of the national film industry and promotion of Riga in the world. Since the 2010 under this programme several projects have been implemented in co-operation with film industry representatives of Great Britain, Germany, Denmark, Russia, Ja-pan, India, Finland, and other countries.
More information: www.filmriga.lv
Industry exhibitions
To promote the development of priority sectors of Riga, the municipality regularly participates in major industry exhibitions at regional and in-ternational level.
The international trade fair for mechanical en-gineering, metalworking, automation, electron-
ics, electrical engineering, industrial supplies, tools and innovated technology Tech Industry in Riga is the biggest and most important event for industrial production in the Baltic States whose aim is to promote the development of production of industry companies and their international communication, stimulate di-rect cooperation between Latvian and foreign companies, reflect trends of the industry and related sectors in the Baltic States, to promote the competitiveness of Latvian companies on the world market, as well as to promote youth interest in engineering science. More than 270 companies from the Baltics, Western and Eastern Europe, Scandinavia, the region of the Commonwealth of Independent States and other countries participate in the fair.
More information: www.techindustry.lv
In March 2017 the Riga municipality, in cooper-ation with the real estate industry companies with a stand will participate already for the tenth time in the prestigious exhibition MIPIM Cannes in France, to promote Riga as a city attractive for investments, promoting companies working in Riga, as well as to stimulate attraction of invest-ments for certain development projects. MIPIM is the biggest and the most important real estate exhibition in Europe where investors and various national real estate market participants from around the world meet. More than 23 000 mem-bers, including more than 5 000 investors rep-resenting more than 90 countries of the world, participate in the exhibition.
More information: www.mipim.com
Creative industries business incubator
The creative industries business incubator of the Investment and Development Agency of Latvia was established especially for creative
industries businesses and it is planned that it will provide 50 % co-financing for different ser-vices and grants, as well as 100 % support for pre-incubation services. In the business incu-bator there will available co-working premises where incubator members will be able to work and to meet with customers and partners, and also to use equipment available there, as well as to attend seminars and events meant for business incubator clients. For joining the Riga creative industries business incubator, appli-cants may apply who work in creative industries sectors: architecture, design, cinematography, performing arts, visual arts, music, publishing, television, radio and interactive media, advertis-ing, computer games and interactive software, cultural heritage, culture education, recreation, entertainment and other cultural activities.
More information: www.liaa.gov.lv/lv/fondi/2014-2020/biznesa-
inkubatori, www.facebook.com/LiaaRIBI/
Other support instruments
For the starting and developing business in Latvia and Riga, varied state support is also available – the Investment and Development Agency of Latvia provides support for export promotion, the development financial institu-tion ALTUM implements start-up and micro-credit programmes, provides credit and export credit guarantees, support start-up company training, coordinates risk capital support, etc., the Rural Support Service implements rural de-velopment activities, also the Latvian Business Angel Network, the business incubator Tech-Hub Riga, business accelerators, and other support is available.
More information: www.liaa.gov.lv, www.altum.lv, www.latban.
lv, http://riga.techhub.com, www.commercializationreactor.com,
http://eegloo.net
3938
ity of the financing in sectors that state has identified as eligible and important.
https://riga.techhub.com
The TechHub Riga supports new en-trepreneurs of information technol-ogy industry, subsidizing job places and training, providing mentoring services, facilitating and organizing measures stimulating new contacts with industry experts and investors.
www.juc.lv
The Young Entrepreneurs Centre is a foundation whose aim is to promote the development of en-trepreneurship in Latvia, providing professional advice to emerging entrepreneurs during the period of establishing a new business.
www.innovation.lv
The Latvian Technological Centre is an innovation and technology-driv-en business support structure – a business accelerator centre that supports on knowledge based business development and growth facilitating cooperation between research institutions and industry companies, as well as internation-al cooperation of small and medi-um-sized companies.
INFORMATIVE SUPPORT BUSINESS SUPPORT AND COOPERATION INSTITUTIONSwww.investeriga.lv
The Riga City Council City Development Department main-tained website for informing existing and potential entre-preneurs and investors. There is available information on the municipality support for businesses, investment oppor-tunities, as well as relevant information about the business environment in Riga.
www.rdpad.lv
The Riga City Council City Development Department is the leading Riga municipal authority in the field of strategic de-velopment planning, in ensuring the balanced development planning, and in facilitating economic competitiveness of the capital city. In the website there is available informa-tion about activities of the Department, provided services, implemented and planned projects, as well as the develop-ment planning of the city.
www.riga.lv
The Riga City Council informative portal, which in two lan-guages (in Latvian and Russian) provides all the relevant information about activities in the city and work of the municipality on improving the urban environment and the quality of life.
www.liveriga.com
The Riga Tourism Development Bureau (founders – the Riga City Council, the airline company airBaltic, the Asso-ciation of Hotels and Restaurants of Latvia and the Associ-ation of Latvian Travel Agents and Operators) maintained website, whose aim is to promote Riga’s tourism abroad using the city tourism brand LIVE RIGA. There is available tourism information in four languages (in Latvian, Russian, English, and German).
www.meetriga.com
The City of Riga and the Riga Tourism Development Bu-reau maintained website, whose main task is to promote and to strengthen Riga’s and Latvia’s status as the perfect venue for conferences, congresses and corporate events in Northern Europe, helping conferences, congresses and corporate event organizers to find the most suitable local service provider in the region.
www.liaa.gov.lv
The Investment and Development Agency of Latvia is the global-ly competitive organization that managed to attract dozens of mil-lion euro of direct foreign invest-ments to Latvia, to conclude ex-port transactions for several doz-ens of millions euro and to create hundreds of new job places, also managed to promote the develop-ment of industrial parks, establish-ment of new research laboratories, as well as to facilitate collaboration in the field of technology transfer. The Investment and Development Agency of Latvia provides wide range of services, starting with the information about starting a business, various state support programmes and fundraising, as well as provides support to entre-preneurs that want to start export-ing and are searching for partners abroad.
www.altum.lv
ALTUM is a state owned develop-ment financial institution that in the form of financial instruments (with loans, guarantees, investments in risk capital funds, etc.) provides state aid to certain target groups. ALTUM formulates and implements state support programmes correct-ing market failures that cannot be resolved by private financial insti-tutions and ensuring the availabil-
4140
www.ltp.lv
The Latvia Technological Park is an association that aims to support technological and innovative busi-ness start-ups and development, with the cooperation of local and foreign organisations and institutions, minis-tries and local governments, universi-ties, and enterprises, applying global experience to local conditions, as well as to activate recognition of sci-ence-intensive and market-oriented production at local and international scale, contributing to introducing in-novative, technologically advanced products in the market.
www.chamber.lv
Latvian Chamber of Commerce and Industry is an association that unites micro, small, medium-sized and large enterprises representing various economic sectors and regions across Latvia. Based on the number of its members, it is the largest non-govern-mental organisation of businessmen, which unites more than 1 600 mem-bers, including individual companies, industry associations, city business clubs, and other businessmen unions. The association represents the inter-ests of entrepreneurs in state and regional institutions, as well as offers services to businessmen.
www.lddk.lv
The Employers’ Confederation of Latvia (LDDK) is the largest employ-ers’ representative organisation in Latvia - its members employ 45 % of employees in Latvia. The mission
of the Employers’ Confederation of Latvia is to establish an environment that supports entrepreneurship in Latvia, facilitating the competitive-ness of companies and representing employers in the framework of so-cial dialogue at the national, Europe-an Union and international level.
www.een.lv
The European Business Support Network is the largest network of business and innovation support contact-points providing practical information on specific issues to en-trepreneurs of the European Union on European Union matters, with particular emphasis on small and medium-sized enterprises.
www.ficil.lv
The Foreign Investors’ Council in Latvia is a non-governmental organ-isation that brings together the larg-est companies from various coun-tries and sectors that have made significant investments in Latvia, as well as thirteen countries’ Chambers of Commerce in Latvia.
www.startin.lv
The Latvian Start-up Association is a non-governmental organisation that unites more than 50 start-up com-panies of Latvia and whose aim is to represent the interests of new entre-preneurs of Latvia, to promote their mutual cooperation and to develop new entrepreneurs ecosystem of Lat-via as a whole. Based on the initiative of the association, in 2016 the Par-liament (Saeima) adopted the Law
on Aid for Start-up Companies that determines support types to such enterprises (special tax rates, the support programmes to attract high-ly qualified employees). The Associ-ation organises the most important events of the start-up sector – Tech-Chill, Riga Venture Summit, Startup Expo, Startup Slalom.
www.labsoflatvia.com
The Labs of Latvia is a platform creat-ed to unite the start-up community of Latvia. The Labs of Latvia aggregates and provides information on the start-up ecosystem of Latvia. The platform provides wide information about start-up companies of Latvia, as well as about support and investments available for new entrepreneurs.
www.commercializationreactor.com
The Commercialisation Reactor was founded with the aim to create new, innovative businesses that are based on scientific and technological devel-opments. The essence of the Com-mercialisation Reactor is to bring to-gether entrepreneurs and founders of scientific innovations, creating new high-tech companies. For creation of new companies the start capital, ad-visory assistance and mentoring are available. Presentations of scientists on the latest technical and scientific developments that need commercial-isation, as well as work in groups and individual meetings with scientists take place during organised events.
www.fablabriga.eu
The Fab Lab Riga is the company that offers new product development
and prototype services using the lat-est technologies. The Fab Lab Riga offer future or existing operators full product development cycle, starting with a consultations on the idea de-velopment, continuing with the prod-uct design, elaboration of individual parts, the prototype manufacturing and, in some cases, the production of the first lot.
www.biznesainkubators.lu.lvwww.riseba.lv/lv/par-riseba/par-rise-ba-radoso-biznesa-inkubatoruwww.rtudf.rtu.lvwww.turiba.lv/lv/dzive-augstskola/biznesa-inkubators/116/Business incubators of higher edu-cation institutions offer students to develop and implement their ideas by subsidising premises, training and providing mentoring.
www.latban.lv
The Latvian Business Angels Net-work aims to extend and to develop the network of investors in Latvia and to support new and prospective projects. The association organises Investment Sessions, where inves-tors and new entrepreneurs meet.
www.eegloo.co
The Business Incubator Eegloo IT is meant for the start-up projects with global potential. For entrepreneurs Eegloo also offers premises, admin-istrative support and advice.
www.batl.lv
The Baltic Association – Transport and Logistics was established in or-
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der to participate in development and adjustment of the transit policy in Latvia and in the European Union, to represent the interests of the indus-try in the political process and busi-ness interests in relations with state and local institutions, to create and to strengthen cooperation with insti-tutions and organizations in countries where main shippers are operating, etc. The association represents com-mon interests of transport and steve-dore companies in business relations with the state, municipalities and their institutions.
www.latvijas-buvnieku-asociacija.lv
The Latvian Builders’ Association works to unite construction profes-sionals for successful and sustain-able development of the construc-tion industry in Latvia and abroad. The aim of the association is to con-solidate and to protect interests of its members in labour market of the construction industry, in econom-ic matters and in relations between employers and employees, as well as in relations with customers.
www.design.lv
The Latvian Designers’ Society is a professional creative organisation that already since 1987 unites spe-cialists of various design spheres. The aim of the society is to promote design development, to study and to preserve its values, to facilitate coop-eration among all designers of Latvia, to identify and to defend their inter-ests and rights, to educate and to in-form the society about design sector.
www.bleea.lv
The Association of Electricians and Energy Engineers of Latvia unites both legal and natural persons that work in the industry. The aim of the associ-ation is to unite its members in order to promote the comprehensive devel-opment of the electrical power and en-ergy engineering sector of Latvia ac-cording to the latest world standards and the common technical policy, to ensure successful work of its mem-bers in labour market of the electrical power and energy engineering sector and to protect their material and moral interests, and to promote the work of its members and to raise its prestige.
www.letera.lv
The Latvian Electrical Engineering and Electronics Industry Association unites companies, research and ed-ucational institutions whose work is related to the sectors of electronics and electrical engineering, optical equipment, information technolo-gies and electronic communications equipment, defence equipment, aviation and space technologies, in order to define and defend jointly their interests, as well as to promote strengthening, development and promotion of the industry.
www.likta.lv
The Latvian Information and Com-munications Technology Association unites leading industry companies and organisations, as well as ICT pro-fessionals. The goal of the association
is to foster growth of ICT sector in Latvia by promoting the development of information society and ICT edu-cation thus increasing the compet-itiveness of Latvia on a global scale. The association provides professional opinion to government institutions on legislation and other issues related to the industry, while also maintaining close relationships with other Latvian and international ICT associations.
www.latvianwood.lv
Latvian Forest Industry Federation aims to promote the development of the forest industry in Latvia, in coop-eration with interested institutions, to build a sustainable, stable economic environment for development and raising competitiveness of the forest industry companies and to ensure international representation of inter-ests of the forest industry of Latvia.
www.lakifa.lv
The main activity directions of the Association of Latvian Chemical and Pharmaceutical Industry is partici-pation in industry business develop-ment concepts and strategies, as well as in elaboration and improvement of the industry legislation providing position on the legislative drafts de-veloped by the state institutions, and also representation of interests of its members in state and local institu-tions, and in relations with employ-ees’ organizations (trade unions) and other legal and natural persons, promotion and raising prestige of its members in Latvia and abroad, par-ticipation in development of voca-tional education and training system of industry professionals, etc.
www.lanida.lv
The Latvia Real Estate Association is independent, voluntary non-govern-mental organization uniting real es-tate agents and assistants of agent. Among its members well known real estate companies can be found, who have proven themselves on the Lat-vian real estate market. The aim of the association is to contribute the improvement and development of its members’ knowledge and skills, to facilitate their professional activities.
www.lpuf.lv
The Latvian Federation of Food Companies unites food companies and professional associations, rep-resents manufacturers in national and non-governmental organisa-tions, and defends interests of its members in elaboration of the na-tional and international normative acts, as well as provides informative support for the members of the fed-eration. The federation unites com-panies that make up to more than 60 % of all Latvian food market. It is represented by industry associ-ations and several dozens of large, medium and small companies.
www.lpua.lv
The Association of Latvian Printing Companies unites 46 legal persons whose business is related to the printing industry: the production of printed products, trade of printing equipment and materials, vocation-al and continuing education of the industry. The aim of the association is to represent the common inter-
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ests of its members, to promote de-velopment of the printing industry in Latvia, to create a favourable public opinion about the printing industry, and to promote the education of the printing industry in the country.
www.lta.lv
The Latvian Traders’ Association unites more than 600 companies whose main business is trade, cater-ing and services.
www.alta.net.lv
The Association of Latvian Travel Agents and Operators is the profes-sional public organization that unites tourism agents and tour operators to coordinate work of travel agents and touroperators, defends their in-terests and represents tourism busi-ness of Latvia globally.
www.lvra.lv
The Association of Hotels and Restaurants of Latvia is an associa-tion that unite accommodation and public catering companies and its mission is to improve the quality of customer services, to improve Latvi-an hotel and restaurant market and to represent the hotel and restaurant business of Latvia globally.
www.masoc.lv
The Association of Mechanical Engi-neering and Metalworking Industries of Latvia unites entrepreneurs, pro-fessionals of the industry and other interested natural and legal persons to promote the development of the
sector, to facilitate mutual coopera-tion and professional growth of indus-try experts. The mission of the asso-ciation is to represent interests of its members and to implement common activities and projects that facilitate the competitiveness of the members and the development of the industry.
www.atci.lv
The Latvian Association of Light In-dustry Enterprises aims at promoting the development of industry compa-nies by facilitating their entering new markets and participation in exhibi-tions, organising mutual cooperation and training for industry profession-als, helping to establish contacts with entrepreneurs of other countries, defending interests of the industry companies in national and interna-tional institutions, as well as in the Textiles Committee of the European Union, regularly analysing changes of the textile and clothing export and import flow, as well as issuing per-missions (licenses) to companies confirming that an exported product is produced in the Republic of Latvia.
Sister Cities of Riga
INTERNATIONAL COOPERATIONThe cooperation and sharing experience with other cities is organized and coordinated by the Foreign Affairs Office of the Riga City Council, whose main task is to organise, to coordinate and to ensure the cooperation of the Riga munic-ipality with foreign local governments and their organisations, as well as to develop and to coor-dinate the cooperation with other foreign interna-tional institutions participating in development of international projects and programmes within the areas of competence of the Riga municipality. Operational objective – to facilitate the acquisi-tion of the best foreign experience in the manage-ment of the city, attracting foreign investments, tourism development and promotion of entre-
preneurship, increasing efficiency of the Riga municipality and its institutions and ensuring the sustainable development of the city of Riga.
Riga has 29 sister cities on five continents. The contracts with the sister cities serve as a foun-dation for cooperation in the areas of culture, education, traffic organization and city devel-opment, as well as healthcare, tourism, invest-ments, business and environment protection, and other areas. Besides, the Foreign Affairs Office of the Riga City Council ensures the co-operation of the Riga municipality with the in-ternational organisations and the cooperation networks where Riga is a member.
• Almaty (KZ)
• Moscow (RU)
• Amsterdam (NL)
• St. Petersburg (RU) • Pori (FI)
• Beijing (CN)
Tallinn (EST)
Santiago(CL)•
Tartu (EST)
• Tashkent (UZ)
• Taipei (TW)
• Minsk (BY) Aalborg (DK)
• Kiev (UA)
• Florence (IT)
Stockholm (SE) •
Suzhou (CN) •
Kobe (JP) •
• Astana (KZ)
Yerevan (AM) •
Cairns (AU) •
• Tbilisi (GE) Warsaw (PL)
Vilnius (LT)
Rostock (DE)
Norrkoping (SE) •
• Bordeaux (FR)Bremen (DE)
• Dallas (USA)
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•
• •
••
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Membership of Riga in the international organisations and networks
The Baltic Metropoles Network BaltMet
The Union of the Baltic Cities UBC
The European Forum for Urban Security EFUS
The Modern Alliance of Hanseatic cities Städtebund DIE HANSE
The Network of Major European Cities EUROCITIES
The Network of European Metropolitan Regions and Areas METREX
The Organization of World Heritage Cities OWHC
The European association of local authorities for the promotion of local sustainable energy policies Energy-Cities
The European Association for Hydrogen and fuel cells and Electro-mobility in European Regions (HyER)
The European folk culture and art festival Europeade
The International Committee for the Conservation of the Industrial Heritage TICCIH
The Association of historical cities the League of Historical Cities
The European Social Network ESN
State institutionswww.am.gov.lv The Ministry of Foreign Affairs of the Republic of Latvia
www.em.gov.lv The Ministry of the Economics of the Republic of Latvia
www.varam.gov.lv The Ministry of Regional Development and Environmental Protection of the Republic of Latvia
www.mk.gov.lv The Cabinet of Ministers, the State Chancellery
www.liaa.gov.lv The Investment and Development Agency of Latvia
www.ur.gov.lv The Register of Enterprises of the Republic of Latvia
www.vid.gov.lv The State Revenue Service of the Republic of Latvia
www.bank.lv The Bank Of Latvia
www.fktk.lv The Financial and Capital Market Commission
www.nva.lv The State Employment Agency
www.csb.gov.lv The Central Statistical Bureau
www.likumi.lv Normative acts of the Republic of Latvia
Riga municipality institutionswww.riga.lv The informative portal of the Riga City Council
https://pasvaldiba.riga.lv The Riga municipality
www.rdpad.lv The Riga City Council City Development Department
www.investeriga.lv The Riga City Council City Development Department website for investors
www.rpbv.lv The Riga City Construction Board
www.liveriga.lv The Riga Tourism Development Bureau
Business and industry associationswww.alta.net.lv The Association of Latvian Travel Agents and Operators
www.atci.lv The Latvian Association of Light Industry Enterprises
www.chamber.lv The Latvian Chamber of Commerce and Industry
www.ficil.lv The Foreign Investors’ Council
www.innovation.lv The Latvian Technological Centre
www.juc.lv The Young Entrepreneurs Centre
www.labsoflatvia.com The start-up community of Latvia
www.lakifa.lv The Association of Latvian Chemical and Pharmaceutical Industry
www.latvianwood.lv The Latvian Forest Industry Federation
www.latvijas-buvnieku-asociacija.lv The Latvian Builders’ Association
www.lddk.lv The Employers’ Confederation of Latvia
www.letera.lv The Association of Electricians and Energy Engineers of Latvia
www.likta.lv The Latvian Information and Communications Technology Association
www.lpua.lv The Association of Latvian Printing Companies
www.lpuf.lv The Latvian Federation of Food Companies
www.lta.lv The Latvian Traders’ Association
www.lvra.lv The Association of Hotels and Restaurants of Latvia
www.masoc.lv The Association of Mechanical Engineering and Metalworking Industries of Latvia
www.startin.lv The Latvian Start-up Association
The Riga City Council City Development Department
Amatu street 4, Riga, LV- 1050, Latvia
www.rdpad.lv
(+371) 67 012 947
@rdpad
RDPilsetasattistibasdepartaments
RĪGAS DOMES PILSĒTAS ATTĪSTĪBAS DEPARTAMENTS
