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On 12 February 2026, the Saeima of the Republic of Latvia adopted, in the final reading, amendments approving the extension of the Latgale Special Economic Zone (Latgale SEZ) until 31 December 2050, as well as the inclusion of Alūksne Municipality within the territory of Latgale SEZ.

These decisions will expand business support opportunities in Latvia’s eastern border region, promote investment attraction and infrastructure development, and strengthen both regional and national security by ensuring long-term stability, investor confidence and the creation of new jobs.

The team of the Latgale Special Economic Zone (Latgale SEZ) participated in Integrated Systems Europe (ISE) 2026, one of the world’s leading exhibitions for the professional audiovisual and systems integration industries, held from 3 to 6 February at Fira de Barcelona, Gran Via, Spain. ISE is a major global forum where industry leaders, innovators, and technology professionals exchange the latest solutions and insights on emerging trends.

ISE regularly brings together thousands of professionals from more than 160 countries, with over 1,600 exhibitors and a wide range of technology zones showcasing the latest products and solutions in audiovisual technologies, digital signage, smart building systems, and systems integration. The exhibition serves as an important platform for networking, market intelligence, and the development of international partnerships.

The past year marked a stable development trajectory in the operation of the Latgale Special Economic Zone (Latgale SEZ), reaffirming the importance of the SEZ as an effective instrument for attracting investments and strengthening the business environment in the Latgale region.

The Latgale SEZ Administration entered 2026 bringing together 39 capital companies with a total of 98 investment agreements, amounting to more than EUR 114.2 million, within which approximately 700 jobs have already been created in the Latgale region.

2025 stood out in the history of the Latgale SEZ as the year with the highest number of investment agreements concluded to date — during the year, 19 new investment projects were launched with a total value of nearly EUR 12.5 million. The implementation of these projects is expected to create at least 83 new jobs in the region.

On 3 February 2026, the Economic, Agricultural, Environmental and Regional Policy Committee of the Saeima supported legislative amendments proposed for the final reading in the Saeima of the Republic of Latvia, which would extend the operating period of the Latgale Special Economic Zone (Latgale SEZ) until 31 December 2050.

At the same time, the Committee conceptually supported extending the operating periods of the Liepāja Special Economic Zone and the Rēzekne Special Economic Zone until the end of 2050. According to Committee Chair Kaspars Briškens, the Committee will request that the Saeima consider the amendments under an urgent procedure.

The proposed extension would provide businesses with long-term stability and predictability, which is essential for attracting new investments, expanding production, and creating jobs in the regions.

In parallel, the amendments also propose the inclusion of Alūksne Municipality in the Latgale SEZ, expanding the zone and broadening access to SEZ incentives, while strengthening the competitiveness of businesses in Latvia’s eastern border region. The inclusion of Alūksne would open additional opportunities for investment attraction, infrastructure development, and business growth, while also contributing to national security.

For the amendments to enter into force, they must still be approved by the Saeima of the Republic of Latvia in the final reading.

During a visit to the high-tech company Light Guide Optics International in Līvāni, specialists from the Latgale Planning Region and the Latgale Special Economic Zone (Latgale SEZ) administration confirmed that the decision taken three years ago to implement a large-scale investment project within the special economic zone has become one of the most prominent examples of industrial development in Latgale.

The investment agreement signed on 9 November 2022—at the time the largest in the history of the Latgale SEZ—marked a new stage of development for both the company and the Latgale SEZ. Today, this decision has materialised in a modern production facility featuring cleanrooms that meet the highest standards for medical product manufacturing, state-of-the-art technologies, and a rapidly growing team of highly qualified specialists.

Over the past three years, the company has implemented the investment project “Expansion of Production Capacity of the Medical Fiber Bundles Unit”, creating additional production premises through the reconstruction of the former medical unit building. The project included the adaptation of premises to ensure the production process and compliance with medical product manufacturing standards, as well as the acquisition of new technical equipment. The total value of the investment project amounts to nearly EUR 17 million.

Light Guide Optics International is one of the world’s leading companies in the development and manufacturing of silicon dioxide optical fibers and fiber-optic products. The optical fibers produced by the company are used in the manufacturing of minimally invasive medical instruments, as well as in industrial and scientific equipment. More than 99% of the company’s production is exported to countries such as the United States, Canada, Israel, Japan, South Korea, Singapore, Germany, and others.

Several significant projects are currently being developed in the Latgale region: the East Latvian Smart Technology and Research Centre (ALTOP) Industrial Park in Daugavpils (Lociki, Augšdaugava Municipality), the Rēzekne Industrial Park in the Northern District, and the “Augšdaugava” Industrial Park in Augšdaugava Municipality.

At the same time, other municipalities across Latgale are developing business-oriented infrastructure by revitalizing industrial areas that will be ready to accommodate export-oriented companies in the future.

A Strong Foundation for Regional Growth

Together, ALTOP and the industrial parks in Rēzekne and Augšdaugava mark a new stage in Latgale’s economic development. These projects will create a modern industrial environment in the region, fostering entrepreneurship, attracting investment, and generating new jobs. They form the basis for Latgale’s emergence as an increasingly important technology and manufacturing hub in Latvia, while continuing to strengthen the already established optoelectronics cluster and ensuring an innovation-friendly environment with long-term economic returns.

The ALTOP Industrial Park of the East Latvian Smart Technology and Research Centre is one of the most ambitious new projects in the Latgale region, implemented by the Daugavpils City Municipality. It is designed for companies with high innovation potential. The project aims to create a modern and competitive business environment that attracts both local and foreign investors and strengthens Latgale’s position on Latvia’s industrial development map.

ALTOP premises are intended for companies operating in smart specialisation (RIS3) areas, including photonics and smart materials, technologies and engineering systems, smart energy and mobility, information and communication technologies, as well as knowledge-intensive bioeconomy, biomedicine, medical technologies, and pharmaceuticals.

On 11 December, in a ceremonial and inspiring atmosphere at the GORS Concert Hall, the annual event “Latgale Region Entrepreneurs’ Award 2025”, organised by the Latgale Planning Region, took place, bringing together entrepreneurs, national and local government leaders, partners, and cooperation organisations.

This year, 12 main nomination awards and three Recognition Awards were presented, resulting in a total of 15 awards highlighting the creativity, sustainable development, innovation, and preservation of traditional skills demonstrated by Latgale’s entrepreneurs.

The festive atmosphere of the event was enhanced by performances from the musical ensemble Baritoni, while speeches by national and local government officials emphasised the vital role of Latgale’s entrepreneurs in shaping the future of both the region and the country.

Awards were presented to 12 nomination winners and three recipients of Recognition Awards (additional information is available on the Latgale Planning Region website).

The Innovation of the Year award was granted to Nexis Fibers, a company operating within the Latgale Special Economic Zone.

The Latgale Special Economic Zone (Latgale SEZ) has been operating successfully in the Latgale region for nine years, promoting investment, modernization of production, and the creation of new jobs. Latgale SEZ currently brings together 38 companies with special status that are actively developing their operations in the region. In total, 94 investment agreements have been concluded, with a combined value exceeding EUR 111 million.

We spoke with Aldis Adamovičs, Chairman of the Development Council of the Latgale Planning Region, about the advantages of the Latgale SEZ and the benefits it offers to entrepreneurs.

How does the Latgale SEZ promote business development in the Latgale region?

The Latgale Special Economic Zone is a state support instrument that provides entrepreneurs – both manufacturers and service providers – with the opportunity to receive state-guaranteed tax incentives when investing in the Latgale region’s economy. Our primary objective is to promote the creation of new jobs and the sustainable development of entrepreneurship in Latgale.

The Latgale Special Economic Zone (Latgale SEZ) is the newest of Latvia’s special territories designed to support businesses, having been established only in 2017. While the combined annual turnover of companies operating within the zone initially amounted to approximately EUR 20 million, last year it exceeded EUR 500 million.

Latgale SEZ companies are breaking long-standing stereotypes about the region’s economic lagging. A high-tech cluster has emerged here, where white gloves have become an essential part of employees’ everyday workwear.

Latgale SEZ differs from other special economic zones in that it does not have a single, predefined territory. This model has been adopted from Poland. SEZ status may be granted to specific land plots or buildings anywhere in the region, provided that the total area does not exceed 5% of the territory of the Latgale Planning Region.

“This is a significant area. God willing, entrepreneurs will come and we will be able to support them,” emphasizes Aldis Adamovičs, Chairman of the Development Council of the Latgale Planning Region and Chairman of the Preiļi Municipality Council.

Plans to Include Alūksne Municipality

Amendments are currently being advanced in the Saeima to include Alūksne Municipality within the Latgale SEZ. Adamovičs explains that Alūksne has already been included in the Latgale Programme aimed at accelerating regional economic development, as well as in the Eastern Border Development Plan approved by the government earlier this year.

On 3 November 2025, foreign diplomats accredited in Latvia in the field of economic affairs, together with representatives and experts from the Ministry of Foreign Affairs, visited Daugavpils as part of a regional visit to Latgale. During a series of networking events, the delegation met with entrepreneurs, municipal leaders, representatives of economic zones, and other regional stakeholders.

The diplomats not only learned about investment and economic cooperation opportunities but also discovered the region’s diverse cultural and historical heritage and tourism potential.

The event brought together diplomats from 17 countries, representing EU, NATO, and OECD member states. The visit aimed to introduce foreign embassy representatives to Latgale’s entrepreneurs, business environment, investment opportunities, and overall economic potential.

“This is the first time that a targeted visit has been organised for foreign embassy diplomats in Latvia who work on economic affairs. This initiative has the potential to become a new tradition of economic diplomacy,”
emphasised Andžejs Viļumsons, State Secretary of the Ministry of Foreign Affairs.