NORWAY Trends and Developments Contributed by: Kai-Ståle Kristiansen, Pål Lieungh and Hedvig Moe, Advokatfirmaet Thommessen AS
The Norwegian defence sector is undergoing a his - toric transformation. A politically mandated spend - ing increase of more than NOK600 billion over 12 years, NATO’s 5% of GDP commitment, and Europe’s broader rearmament have fundamentally altered mar- ket dynamics for established industry players (primes) and the entire supply chain down as far as sub-tier suppliers and market entrants. The long-term defence plan known as the Defence Pledge ( Forsvarsløftet ), unanimously adopted by the Norwegian Parliament in June 2024 provides a total of NOK1,624 billion for the defence sector through 2036. Three successive budget increases, in 2024–25, 2028 and 2032, will be implemented alongside efforts to address existing backlogs in maintenance, ICT and ammunition stocks. NATO’s decision at the June 2025 Hague summit to raise the defence spending commitment to 5% of GDP by 2035 – divided into 3.5% for core defence expenditure and up to 1.5% for broader security- related investment – has created a new framework for procurement planning. In terms of increase in defence expenditure, Norway’s own projections show defence expenditure equivalent to 2.68% of GDP by 2030. The gap to 5% will require substantial further increases beyond the current plan. The practical implications of this are twofold. First, the procurement pipeline is expected to grow well beyond what has already been adopted. Second, the 1.5% category – covering cybersecurity, critical infrastruc - ture and civil preparedness – opens the market to a broader range of suppliers than the traditional defence sector. Market assessments indicate that 81% of Nor - wegian defence industry actors expect market growth exceeding 10% over the next five years, and that 97% consider political and regulatory predictability to be important or very important for their strategic deci - sions. Developments in the Regulatory Landscape The procurement framework Defence procurement in Norway is governed by a multi-layered system reflecting the interplay between general public procurement rules, defence- and secu - rity-specific regimes and EEA exemption provisions.
The legal foundation comprises the Public Procure - ment Act ( lov om offentlige anskaffelser (LOA)) with its regulations – including the Public Procurement Regulations ( forskrift om offentlige anskaffelser (FOA)) and the Defence and Security Procurement Regula - tions ( forskrift om forsvars - og sikkerhetsanskaffelser (FOSA)) – as well as the Guidelines on Acquisitions in the Defence Sector ( Retningslinjer for anskaffel - ser i forsvarssektoren (RAF)) with annexes. FOSA implements the EU Defence Procurement Directive (2009/81/EC) into Norwegian law. The Norwegian government appointed a committee in 2022 to review and simplify the public procurement framework as a whole. The committee delivered two comprehensive reports, and some of the proposals were implemented in LOA with effect from 1 July 2026 – including an increase in the threshold for when the Act applies (with procurements with a value exceed - ing NOK100,000 now adjusted to NOK500,000), as well as sustainability and social requirements, includ - ing the obligation to weigh climate and environmental considerations for a minimum of 30% in the award criteria. However, the ongoing EU-level revision of the procurement directives will influence the timeline for further Norwegian reforms, since Norwegian rules must remain consistent with the EEA-relevant direc - tives. RAF functions as a sector-specific guideline issued by the Ministry of Defence with the status of an internal instruction. Although it confers no rights on third par - ties, RAF has considerable practical significance for how procurement processes are conducted. With effect from 1 January 2026, the Ministry of Defence revised the earlier sectoral guidelines, ( Anskaffelsesregelverk for Forsvarssektoren (ARF)), and replaced it with RAF, explicitly reflecting the altered security environment and the need for a higher procurement tempo. RAF’s scope has been clarified: Part I applies to all defence sector acquisitions, Part II to procurements above the EEA threshold, and Part III to procurements that are exempted under Article 123 or Article 36. Compared with the ARF, the RAF introduces a more comprehensive framework for ethics, sustainabil -
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