Economy
AI
Estonian Defense Firm Fuels Record Foreign Investment in Latvia
Latvia secured a historic high of over one billion euros in foreign investment projects in 2025, a surge significantly bolstered by a major capital injection from Estonian defense company Frankenburg Technologies.
- —Estonia is experiencing a surge in foreign investment projects, with a record number launched in 2025 totaling over one billion euros, creating more than 1300 new jobs.
- —The defense industry is a key focus for investment, with a significant contribution from Estonian defense company Frankenburg Technologies entering the Latvian market.
- —Estonia's innovation loan measure, totaling €27.3 million, is specifically channeling €23.8 million into the defense industry to boost export turnover and product development.
- —The country aims to enhance its business environment by making it faster and more predictable, with a focus on improving the speed of various procedures for industrial companies.
- —Estonia's e-Residency program continues to attract international entrepreneurs, with France being a significant market for applications.
Recap
Estonia's strategic pivot to a defense-oriented, high-tech economy is now producing tangible cross-border results. The investment by Frankenburg Technologies in Latvia demonstrates a calculated effort to leverage national security imperatives for regional economic expansion, positioning the Baltics as an integrated hub for defense innovation and investment.