This law enables authorities to review and block foreign investments in Icelandic companies and assets if they threaten national security or public order. The screening applies to sensitive sectors such as critical infrastructure, energy companies, telecommunications, and other key operations. Foreign parties seeking to acquire or gain significant influence over Icelandic companies in these sectors must notify the authorities in advance and may face suspension or conditions if risks are identified. The law applies to foreign individuals, companies, states, and also Icelandic companies that are 50% or more foreign-owned.