The Austrian Business Agency (ABA) recorded a slight decrease in business settlements in the previous year, with 309 new businesses compared to 325 in 2023. However, the number of consultations has increased significantly. After about 12,700 consultations in 2023, the agency provided advice on approximately 21,500 occasions to foreign companies or workers in the past year. According to ABA, these settlements created 2,216 new jobs.
The ABA is responsible for marketing Austria as a business location and offers free advice to international companies and investors interested in setting up businesses in Austria. It is a subsidiary of the Ministry of Labor and Economics and is 100% owned by the federal government. It is divided into the “Invest,” “Film,” and “Work” sectors.
In the investment sector, the agency recorded €1.1 billion in capital invested by settled companies in Austria. “Achieving €1.1 billion in investments and 309 business settlements in a recession year like 2024 is more than respectable, given the circumstances,” said Wolfgang Hattmannsdorfer (ÖVP) at his first press conference as Minister of Economics on Thursday. The settlements were particularly prominent in the fields of Information and Communication Technology (66), business-related services (44), and retail (25). The health/Biotech (21) and energy/environmental technology (17) sectors also saw growth. Among the settled companies, 40 were international startups. Nevertheless, Hattmannsdorfer emphasized the need to identify ways to make Austria more attractive for international settlements.
Settlements Mainly from Germany and Focused on Vienna
Of the 309 new business settlements or expansions, nearly a third (102) came from Germany. “We hope that, due to the new situation in Germany, the engine will start running again, so we can expect high numbers from Germany in the future,” said René Tritscher, CEO of ABA, referencing the €500 billion financial package announced for Germany. Following Germany, Italy (23), Switzerland, and Hungary (each 20) were the next largest sources of settlements. The United States contributed 13 companies, and China seven.
A prominent example of such a settlement is the joint venture agreed in early March between the partially state-owned Austrian OMV and Adnoc from Abu Dhabi. The Borouge Group International, a merger of the two petrochemical subsidiaries Borealis and Borouge, will be headquartered in Austria.
Vienna remained a particularly popular location for foreign companies. With 178 settlements, the capital accounted for the majority. The remaining provinces saw more balanced distributions of settlements. Lower and Upper Austria each recorded 21 new foreign companies, followed by Salzburg and Tyrol, each with 19.
Nearly 4,000 Consultations for the Red-White-Red Card
The interest in the Red-White-Red Card remained on a similar level. The “Work in Austria” sector supports companies in hiring foreign skilled workers. In the past year, ABA conducted 3,932 consultations regarding the Red-White-Red Card and other residence permits. The ABA’s “Film” sector realized seven film and TV series productions, down from 29 in the previous year.
The significant increase in consultations, approximately 70% more than in 2023, can largely be attributed to consultations with workers, with nearly 16,000 of the 21,500 consultations focusing on these matters, according to Tritscher.
