Encouraging investment and market diversification
Enhancing investment and helping businesses get their products to new markets.
Investment attraction activities focus on connecting companies with opportunities that create employment for Albertans, while bringing new technologies, products, services and capital to the province.
Attracting and supporting new businesses
$25 million has been allocated over 2 years to attract and support new businesses. This includes:
- $10 million to help entrepreneurs and small or medium-sized businesses grow
- $10 million to support the expansion of the food processing opportunities
- $5 million to attract major new business investment or company headquarters to Alberta
Modernized Royalty Framework
The Modernized Royalty Framework harmonizes the way oil, gas and liquids drilled in the province are treated, which improves investment certainty. A Drilling and Completion Cost Allowance was introduced, which creates an incentive for companies to lower operating costs, helping to spur innovation in the sector and optimize royalty returns for Albertans.
Conventionally drilled wells that are currently operating can opt-in early to the new framework, which takes effect on January 2017, allowing potential jobs and investments to start now instead of waiting until next year.
129 new wells have been approved since the early access program was announced in July. Each well supports about 135 direct and indirect jobs and about $4.5 million in spending.
Alberta Investment Management Corporation
The Alberta Investment Management Corporation (AIMCo) will invest a portion of the province’s Heritage Fund into businesses with strong growth potential.
As of October 2016, AIMCo has invested a total of $104.5 million in capital into 4 companies.
Headquarters and major investment attraction
For both domestic and international companies, Alberta is a great place to do business. For example, Calgary is home to the highest concentration per capita of international headquarters in Canada. It also has one of the country’s youngest, most highly educated and skilled workforces. Working together to build on those strengths helps create and maintain jobs and diversify our economy.
As part of the Alberta Jobs Plan, government is investing $5 million over two years to build on Alberta’s competitive advantages and attract major firms to set up their head offices in the province. Through this program, $2 million has been provided to both Calgary Economic Development (CED) and Edmonton Economic Development Corporation (EEDC) to support the enhancement and implementation of regional headquarters and investment attraction strategies, building on programs these organizations already have in place. The remaining $1 million will be used by government to support ongoing investment attraction efforts.
Alberta Export Expansion Package (AEEP)
The Alberta Export Expansion Package supports Alberta businesses looking to enter new international markets. The package will divide up to $9 million funding annually over 3 years between 3 new programs:
- the Export Support Fund, which will cover up to $20,000 to eligible Alberta companies for costs of exporting to new international markets;
- the Global Buyers and Investors Program, which will help export-ready companies connect with international buyers by bringing business delegations to the province; and
- the Export Readiness Program will familiarize Alberta SMEs with the ins and outs of exporting and enhance their readiness for the export market. This includes the Export Readiness Micro-Voucher Program, which will provide businesses with up to $10,000 for the development of a targeted international market strategy focused on one country.
Accessing new markets
The government is also taking action to open new markets for Alberta goods and services in a number of ways. This includes through showing leadership on the environment, showing respect for indigenous peoples and working collaboratively with other governments across Canada and around the world.
A key challenge facing Alberta’s energy industry is the need to improve our access to new world markets, which means getting at least one new pipeline built to tidewater. The Climate Leadership Plan will improve Alberta’s reputation, which in turn will improve the likelihood of constructing new trade infrastructure and protect jobs in our largest industry.
The government will continue to work with local businesses to help them access opportunities outside the province.
Asia is widely considered to hold the highest potential for economic returns, and the placement of our international offices helps Alberta businesses succeed in those markets.
Alberta Culture and Tourism also offers international investment services, which link international capital sources with established Alberta companies seeking joint-venture tourism investment, such as resort development.