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Trump's Greenland ambitions shift focus of investment

screening

bill

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Lawmakers fear US investors may have hidden political

motives

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Greenland curbed foreign housing investments following

surge in

US interest

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Lawmakers need to balance need for foreign capital and

blocking

unwanted investors

By Jacob Gronholt-Pedersen

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)