Arya News - COPENHAGEN, Feb 26 (Reuters) - A surge in property interest from U.S. buyers in Nuuk early last year prompted lawmakers to rush through curbs on foreign purchases and shifted the focus of Greenland`s
COPENHAGEN, Feb 26 (Reuters) - A surge in property interest from U.S. buyers in Nuuk early last year prompted lawmakers to rush through curbs on foreign purchases and shifted the focus of Greenland"s upcoming foreign-investment screening law, lawmakers and other people familiar with the matter said.
In January 2025, around the time U.S. President Donald Trump renewed his efforts to assert greater control over Greenland, lawyers and real estate firms in the capital began receiving multiple inquiries from U.S. buyers, six people familiar with the matter said.
Until then, foreigners had shown little interest in property in the town of 20,000 people.
"The most aggressive ones wanted to buy everything available on the market," said a Nuuk-based lawyer, who requested anonymity.
BALANCING NEEDS OF ECONOMY WITH POLITICS
Trump"s interest in the Arctic island has left its lawmakers in a dilemma, as they balance the need to attract capital to boost its stagnating economy with a wish to block out U.S. investors they suspect may carry hidden political motives.
It was not clear who the investors were or whether they were linked to Trump’s push for Greenland, which is a semi-autonomous part of the Kingdom of Denmark.
But the sudden interest alarmed lawmakers, who feared outside buyers could push residents out of Nuuk’s already tight housing market, three of the sources said. By February 2025, Greenland’s government had tightened controls on foreign property purchases.
The housing scare fed into the broader push to give authorities tools to vet who is behind incoming capital.
FOREIGN INVESTMENT BILL SUBMITTED IN OCTOBER
A foreign investment screening bill, long in the works and formally submitted to parliament in October, was initially conceived partly as a safeguard against any unwanted Chinese investment. But three of the sources said the focus had shifted following Trump"s revived Greenland ambitions.
"We are very interested in working with American investors, but not in a way where they try to push certain political goals," said MP Aqqalu Jerimiassen from the Atassut party, part of Greenland"s governing coalition.
Greenland has long sought to diversify its economy, primarily by courting investments in its mining sector. However, limited infrastructure, including a lack of roads connecting the region"s 72 towns, extreme climatic conditions, and labour shortages, have hampered progress in attracting meaningful foreign capital.
Denmark has allocated extra money for infrastructure and other development initiatives, and the EU has proposed more than doubling its funding. Still, the Arctic nation"s economy remains stagnant, with growth at just 0.2% in 2025 and a significant deficit in public finances.
SOME SECTORS WILL NEED MANDATORY SCREENING
First debated in November, the screening bill is set for further discussion in April and is expected to be passed that month. The draft requires foreign investors to disclose the origin of their funds and enables authorities to reject deals if the political affiliations or intentions of the investors raise concerns.
"If someone is working for Trump, we will find out with this screening law. This is about our own security," Jerimiassen added.
The proposed bill does not single out specific countries but urges cooperation with allies, indicating that American and European investors may face less scrutiny compared to Chinese counterparts. However, it grants Greenland the authority to review foreign investments considered a threat to security.
"The purpose of the law is to prevent foreign investments from posing a threat to Greenland"s security or public order," the legislation states. In addition, its goal is to enhance the security of "Greenland and its allies, including NATO member states".
Foreign investments in critical infrastructure, IT and classified data systems, raw materials and mining, hydropower, and government-owned companies will require mandatory screening under the proposed law.
The legislation is limited to areas under Greenland"s jurisdiction and does not extend to U.S. military activities on the island, which remain under Denmark"s control.
China has said it has no intention of competing for influence in Greenland.
GREENLAND STILL WANTS AMERICAN CAPITAL, MP SAYS
Last month, Drew Horn, a former senior aide in Trump’s first administration, announced plans for a multi‑billion‑dollar data centre in Greenland - the kind of project some lawmakers view as underscoring the need for clearer screening rules.
Greenland’s government said it has not received any applications or formal requests related to the proposal.
Horn, who now leads an investment and advisory firm, told Reuters the project had no political ties and that he had no concerns about passing any screening requirements in Greenland.
"Greenland wants American capital, but we fear hidden political motives behind certain U.S. private investors," said one member of parliament, speaking anonymously due to the sensitivity of the issue.
Negotiations between Greenland and the U.S. over access and presence on the island are ongoing, with Trump still insisting on “total access” to the island.
Business Minister Naaja Nathanielsen told Reuters the foreign investment screening law was not drafted in response to U.S. interest and that she continued to welcome American investment.
However, if negotiations between the U.S. and Greenland broke down, she said, "then of course we would need to reevaluate our position. But we are not there yet".
Greenland’s housing ministry said property restrictions imposed last year were a precautionary measure not linked to specific data but intended to maintain control over Nuuk"s housing availability.
($1 = 6.3449 Danish crowns)
($1 = 0.8494 euros)
(Reporting by Jacob Gronholt-Pedersen; Additional reporting by Pete McKenzie; Editing by Alison Williams)