The Republic of Iceland

IcelandNorthern Europe
-4:00Hours behind the UAE
About the Country

General Information

National Identity
Official Language(s)Icelandic
National CurrencyIcelandic Krona (ISK)
National Day(s)17 June (Icelandic National Day)
Capitals
Political / Administrative CapitalReykjavik
Economic CapitalReykjavik
Cultural CapitalReykjavik
Transport & Connectivity
Flight Duration from the UAE≈ 9 – 11 h Connecting flights
Primary AirportKeflavik International Airport (KEF)
Primary PortPort of Reykjavik
Geography
Land Area-
Length of the Coastline4,970 km
Highest PointHvannadalshnukur (2,110 m)
Primary Inland Water Body / RiverThjorsa River (the longest river in Iceland, about 230 km)
ClimateSubpolar oceanic

Border Countries

None (island country)
0

Last Updated: July 2026Source: Internal Research

Key Facts

Iceland has one of the world’s oldest parliaments: the Althingi, established in 930 AD at Thingvellir, is the oldest parliament still in existence.

Vigdis Finnbogadottir was elected President of Iceland in 1980, becoming the first woman in the world to be democratically elected as a head of state.

Iceland was one of NATO’s twelve founding members in 1949 and remains the only NATO member without its own military forces.

Iceland expanded its exclusive fisheries zone to 200 nautical miles in 1975 during the series of disputes with the United Kingdom known as the Cod Wars.

Iceland publishes more books per capita than any other country, and its Christmas Eve tradition of Jolabokaflod (the Christmas Book Flood) sees people exchange and read books.

Over 99% of Iceland’s electricity and heating comes from domestic renewable sources, primarily geothermal and hydroelectric power.

Surtsey is a volcanic island that formed south of Iceland during eruptions from 1963 to 1967 and has been protected as a natural scientific laboratory.

The 2010 eruption of Eyjafjallajokull caused the cancellation of more than 100,000 flights and affected about seven million passengers.

Nordic clinker boat traditions shared by Iceland and four other Nordic countries were inscribed on UNESCO’s Representative List of Intangible Cultural Heritage in 2021.

The Arnamagnaean Manuscript Collection contains nearly 3,000 items, including important medieval Icelandic sagas, and was added to UNESCO’s Memory of the World Register in 2009.

Iceland’s 1703 census is the oldest surviving nominal census in the world that records every member of an entire country’s population by name, age and social status.

The 1703 Census of Iceland was added to UNESCO’s Memory of the World International Register in 2013.

Last Updated: July 2026Source: Internal Research

Economic Overview

Macroeconomic Snapshot

GDP, current prices-USD Billions
Real GDP growth-Annual percent change (%)
GDP per capita, current prices-USD per capita
Population-Millions of people
General government gross debt-% of GDP
Income levelWorld Bank classification-

Economic Comparison

IndicatorIcelandUAEIcelandUAE
GDP, current pricesUSD Billions--
GDP, PPPCurrent int$--
Real GDP growthAnnual percent change (%)--
GDP per capita, current pricesUSD per capita--
PopulationMillions of people--
Unemployment rate% of total labor force--
Inflation rate (avg. consumer prices)Annual percent change (%)--
General government gross debt% of GDP--
Income levelWorld Bank classification--

Foreign Trade

No data available for this section yet.

Political Overview

Leadership

Head of State

H.E. Halla Tomasdottir

Since August 2024

Head of Government

H.E. Kristrun Frostadottir

Since December 2024

Minister of Foreign Affairs

H.E. Thorgerdur Katrin Gunnarsdottir

Since December 2024

Minister of Finance & Economy

H.E. Dr. Dadi Mar Kristofersson

Since December 2024

Minister of Trade

H.E. Hanna Katrin Fridriksson

Since December 2024

Political Summary

Political System

Parliamentary Republic

The President is directly elected, and the Althingi is a unicameral parliament of 63 members. The Constitution vests legislative power jointly in the Althingi and the President, while executive authority is exercised by the President and the government.

Ruling Party

Social Democratic Alliance, in coalition with the Liberal Reform Party and the People’s Party: Centre-left (since December 2024)

Main Opposition Force(s)

Independence Party: Centre-rightCentre Party: Right-wingProgressive Party: Centre

Next Presidential Election

Expected in June 2028

Next Legislative Election

November 2028

Last Updated: May 2026Source: Internal Research

Membership in Key Organizations and Blocs

49Organizations
29Member
4Founding Member
3Partner, Observer or Participant
13Not a Member

Last Updated: July 2026Source: Official websites of the respective organizations

Competitiveness Indexes

IndexYearRank Out ofIcelandUAE

No index matches.

Bilateral Relations

Diplomatic Relations and Representation

Date of Establishment of Diplomatic Relations18 Sep 200323 years of relations
H.E. Mansoor Abdullah Khalfan Juma Abulhoul
UAE Ambassador
H.E. Mansoor Abdullah Khalfan Juma AbulhoulUAE Ambassador to Iceland · Non-resident
H.E. Stephanie Steffanson
Foreign Ambassador
H.E. Stephanie SteffansonAmbassador of Iceland to the UAE · Resident

Last Updated: June 2026Source: MoFA; Internal Research

Consular Information

Tourists
Residents
Students
Golden Visa Holders
Iceland Nationalsin the UAE
----
UAE Citizensin Iceland
----

Main Agreements and MoUs

Agreement / MOUStatusNotes
CEPAComprehensive Economic Partnership Agreement
--
IPPAInvestment Protection and Promotion Agreement
--
DTADouble Taxation Avoidance Agreement
--
ASAAir Services Agreement
Signed
Signed on 29 Sep 2015.
Ratified— Signed and entered into force
Signed— Signed, but entry into force or ratification is pending
Not Signed— No signed agreement exists

Last Updated: April 2026Source: Internal Research

UAE Foreign Assistance

UAE Aid to IcelandTotal Amount
Amount (USD Mn)-

Bilateral Visits

Official Visits from the UAE

  • H.E. Mariam bint Mohammed AlmheiriMinister of Climate Change and Environment
    Oct2023
  • H.E. Dr. Sultan bin Ahmed Al JaberMinister of Industry and Advanced Technology, and COP28 President-Designate
    Oct2023
  • H.H. Sheikh Abdullah bin Zayed Al NahyanMinister of Foreign Affairs
    May2009
  • H.E. Dr. Sultan bin Ahmed Al JaberCEO of Masdar
    Mar2006

Official Visits to the UAE

  • H.E. Katrin JakobsdottirPrime Minister of Iceland
    Dec2023
  • H.E. Gudlaugur Thor ThordarsonMinister of the Environment, Energy and Climate of Iceland
    Dec2023
  • H.E. Olafur Ragnar GrimssonFormer President of Iceland
    Jan2023
  • H.E. Gunnar Bragi SveinssonMinister for Foreign Affairs of Iceland
    Jan2016
  • H.E. Olafur Ragnar GrimssonPresident of Iceland
    Jan2016
  • H.E. Olafur Ragnar GrimssonPresident of Iceland
    Oct2015
  • H.E. Olafur Ragnar GrimssonPresident of Iceland
    Jan2015
  • H.E. Olafur Ragnar GrimssonPresident of Iceland
    Mar2014
  • H.E. Olafur Ragnar GrimssonPresident of Iceland
    Jan2014
  • H.E. Olafur Ragnar GrimssonPresident of Iceland
    Nov2013
  • H.E. Olafur Ragnar GrimssonPresident of Iceland
    Jan2013
  • H.E. Olafur Ragnar GrimssonPresident of Iceland
    Oct2012
  • H.E. Olafur Ragnar GrimssonPresident of Iceland
    Jan2012
  • H.E. Olafur Ragnar GrimssonPresident of Iceland
    Dec2011
  • H.E. Olafur Ragnar GrimssonPresident of Iceland
    Jan2011
  • H.E. Olafur Ragnar GrimssonPresident of Iceland
    Nov2010
  • H.E. Olafur Ragnar GrimssonPresident of Iceland
    Jan2010
  • H.E. Olafur Ragnar GrimssonPresident of Iceland
    Nov2009
  • H.E. Olafur Ragnar GrimssonPresident of Iceland
    Jan2008
  • H.E. Ossur SkarphedinssonMinister of Industry and Energy of Iceland
    Jan2008

The officials’ titles shown reflect the positions held at the time of the visit.

Last Updated: April 2026Source: Internal Research

Trade

Non-Oil Bilateral Trade

-

Rank Among UAE's Trade Partners

-Non-oil trade partner of the UAE
-Source of UAE imports
-Destination for UAE exports
-Destination for UAE re‑exports

Key Trade Commodities

-

Foreign Direct Investment Flows

Jan 2021 – Sep 2026
FDI Inflows (Into the UAE)1.2USD Millions
FDI Outflows (UAE Abroad)-

Capex and jobs data include estimated values.

Last Updated: November 2026Source: fDi Markets

Major Companies and Investments

Major Icelandic Companies in the UAE

  • Icelandair GroupIcelandair GroupAviation
  • MarelMarelFood technology

Major UAE Companies in Iceland

  • DP WorldDP World-

Last Updated: April 2026Source: Internal Research

Business Support

Joint Business Council(s)-

Cooperation Opportunities

Priority level: HIGH / MEDIUM / EMERGING, based on overall attractiveness to the UAE.

Last Updated: September 2026Source: Internal Research