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Danish Economy, Trade & Industry

Since 1982, Denmark has pursued a consistent, stability-oriented, macro-economic policy which, among other things, has resulted in Denmark today being the EU country with the largest budget surplus of approx. 3.5% of GDP. In addition, unemployment is below 5% and the surplus on the balance of payments is around 2.5% of GDP. Denmark, also, has one of the best developed infrastructures in the world, a very high general level of education and a very competent work force.

Industry structure

The Danish industry structure is characterized by many small and medium sized companies. Contrary to the general assumption, the percentage of small companies in Denmark is nonetheless no greater than in Europe generally.

An average Danish company has ten employees while the average company in the Nordic countries and EU-15 has seven employees. The figures hide the fact that Denmark has relatively few very small companies while the average large Danish company has considerably fewer employees than large EU-15 countries.

This industry structure has, both, advantages and disadvantages. The relatively large number of medium-sized companies gives Danish trade and industry great flexibility and the ability to adapt quickly to changed market conditions. On the other hand, the relatively few large companies results in lower average productivity as the value increment per employee in large companies is typically greater than in small companies.

Labour market

The Danish labour market is one of the most flexible in Europe, allowing companies to adjust the number of employees according to market demands. Industrial relations are highly organized and major disputes and strikes in the labour market are very rare. Denmark has a highly skilled and well-educated labour work force that contributes substantially to the strong productivity of Danish Trade & Industry. A large well organized post graduate education system ensures that skills and productivity are continuously improved. Denmark, also, has competitive labour cost levels. Total labour costs - wages and non wages - are considerably lower in Denmark than in most other EU countries. This is due to the employers' low cost burden in terms of social security, labour taxes etc.

Competitive labout costs and hogh productivity levels combine to make the Danish work force one of the most cost effective in Europe. This is further accentuated by the Danes approach to work, which is best characterized by the words efficiency, company loyalty, motivation, self-reliance and creativity.

Industrial Policy

The Danish industry structure, with relatively few large companies and a relatively well qualified work force with great professional and geographic mobility, has probably made it easier for Denmark to pursue an industrial policy targeted at the overall framework conditions for trade & industry, while selective industrial grants are only provided to a limited extent. All else being equal, this has led to a faster and more effective structural development of both agriculture and industry, with less competitive farms and companies having to yield to more competitive ones. The associated social challenges have been tackled through a well developed social and labour market system.

Nonetheless, Denmark can point to several positions of strength, where Danish trade & industry are among the world leaders.

Market opportunities

Most business people automatically think of Dubai and Abu Dhabi when they hear of the United Arab Emirates. These two Emirates are the most significant of the seven Emirates, although one should not overlook the other Emirates also. All seven Emirates possess individual characteristics and can be highly attractive for Danish companies in certain areas. There are huge market possibilities in the entire United Arab Emirates and companies should not beforehand exclude the remaining Emirates as there can be considerable profits to collect.

It should be noted that this website is only meant to give an indication of the market prospects in the United Arab Emirates and does not serve as a regular market analysis. If you are interested in more information about market opportunities, detailed market research and doing business in the UAE in any specific field, please contact the Trade Commission of Denmark.