The buyout frenzy has seen investment group Baugur swoop for high street names such as Hamleys, Goldsmiths, Mappin & Webb and Oasis. Icelandic bank Landsbanki bought stockbrokers Teather & Greenwood last year while rival Kaupthing acquired the British bank Singer & Friedlander.
The latest episode in the saga has come from FL Group, which owns Icelandair and is building its stake in easyJet, although the low-cost carrier has appointed investment bank Goldman Sachs to strengthen its defences against takeover moves.
Matt Fleetwood, the managing partner at Heatons Solicitors, Manchester, has advised Baugur on several of its acquisitions and has acted for other groups of Icelandic investors, including a consortium which bought Jones the Bootmaker last year.
Mr Fleetwood said: "There is still an appetite for more Icelandic investment in the UK."
As well as further retail swoops, some experts believe Icelandic cash could be spent in the media and financial services sectors.
The island, with a population of just 285,000, was regarded as a sleepy backwater with an economy dependent on fishing.
However, Iceland's economy is now roaring following deregulation of the financial services market, which has unleashed a lending and investment boom.
Mr Fleetwood said there were other factors for the investment surge in Britain.
"There's a real entrepreneurial spirit and self-confidence in Iceland, akin to the American-type culture. They believe they can rule the world.
"The fast-growing economy means it's easy to raise investment. In addition, there is a compulsory pension scheme which means funds are awash with cash.
"The US is a tough retail market to break into but the UK is a better bet."
Prof Pervez Ghauri, of Manchester Business School, said non-EU countries were eager to invest in member states, and the UK was proving attractive because of its relaxed labour laws and the fact that Icelanders speak English.
Greater Manchester's connections with Iceland are growing. Icelandair is to start scheduled flights to Reykjavik from April, while Landsbanki has launched operations in the city.
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Olafur Klemensson, Reykjavik, Iceland (11/01/2006 at 12:11)
2.The Icelandic economy has been on average one of the fast growing economies in the OECD area since in the 1960B4
3. Pro capita GDP in Iceland has been in the last 30 years amoung the highest in the world, much higher e.g. than in the UK, now on par with Ireland, or in the 4-5th in the world
4. Fishing was the backbone of the economy but the sevice sector (tourism, banking, ITC and transport) has been very strong for the last 10 years or so and the use and harnessing of hydro and geothermal power
5. Large scale investment in aluminium plants and in power starions is now one of the driving forces of the very high economic growth (5-7% per year 2004-2007)
6. See the webside of Central Bank of Iceland esp. the newly published Economy of Iceland 2005
Olafur Klemensson
Economist