Orkney Map.png

Orkney (; sco, Orkney; on, Orkneyjar; nrn, Orknøjar), also known as the Orkney Islands, is an archipelago in the Northern Isles of Scotland, situated off the north coast of the island of Great Britain. Orkney is 10 miles (16 km) north of the coast of Caithness and has about 70 islands, of which 20 are inhabited. The largest island, the Mainland, has an area of , making it the sixth-largest Scottish island and the tenth-largest island in the British Isles. Orkney’s largest settlement, and also its administrative centre, is Kirkwall.

Orkney is one of the 32 council areas of Scotland, as well as a constituency of the Scottish Parliament, a lieutenancy area, and an historic county. The local council is Orkney Islands Council, one of only three councils in Scotland with a majority of elected members who are independents.

The islands have been inhabited for at least years, originally occupied by Mesolithic and Neolithic tribes and then by the Picts. Orkney was colonized and later annexed by the Kingdom of Norway in 875 and settled by the Norsemen. In 1472, the Parliament of Scotland absorbed the Earldom of Orkney into the Kingdom of Scotland, following failure to pay a dowry promised to James III of Scotland by the family of his bride, Margaret of Denmark.

In addition to the Mainland, most of the remaining islands are divided into two groups: the North Isles and the South Isles. The climate is relatively mild and the soils are extremely fertile; most of the land is farmed, and agriculture is the most important sector of the economy. The significant wind and marine energy resources are of growing importance; the amount of electricity that Orkney generates annually from renewable energy sources exceeds its demand.

The local people are known as Orcadians; they speak a distinctive dialect of the Scots language and have a rich body of folklore. Orkney contains some of the oldest and best-preserved Neolithic sites in Europe; the "Heart of Neolithic Orkney" is a designated UNESCO World Heritage Site. Orkney also has an abundance of marine and avian wildlife.

Etymology

Pytheas of Massilia visited Britain – probably sometime between 322 and 285 BC – and described it as triangular in shape, with a northern tip called ''Orcas''.Breeze, David J. "The ancient geography of Scotland" in Smith and Banks (2002) pp. 11–13.
This may have referred to Dunnet Head, from which Orkney is visible."Early Historical References to Orkney"
Orkneyjar.com. Retrieved 27 June 2009. Writing in the 1st century AD, the Roman geographers Ptolemy and Pomponius Mela called the islands (Όρκάδες), as did Tacitus in 98 AD, claiming that his father-in-law Agricola had "discovered and subjugated the Orcades hitherto unknown" (although both Mela and Pliny had previously referred to the islands). The Byzantine John Tzetzes in his work ''Chiliades'' is calling the islands as Orcades.

Etymologists usually interpret the element as a Pictish tribal name meaning "young pig" or "young boar".
Waugh, Doreen J. "Orkney Place-names" in Omand (2003) p. 116. Speakers of Old Irish referred to the islands as "islands of the young pigs"."The Origin of Orkney"
Orkneyjar.com. Retrieved 27 June 2009. The archipelago is known as in modern Welsh and in modern Scottish Gaelic, the representing a fossilized prepositional case ending. Some earlier sources alternatively hypothesise that Orkney comes from the Latin , whale. The Anglo-Saxon monk Bede refers to the islands as in ''Ecclesiastical History of the English People''.

Norwegian settlers arriving from the late ninth century reinterpreted ''orc'' as the Old Norse "seal" and added "islands" to the end, so the name became "Seal Islands". The plural suffix was later removed in English leaving the modern name ''Orkney''. According to the , Orkney was named after an earl called Orkan.

The Norse knew Mainland, Orkney as "Mainland" or as "Horse Island".Haswell-Smith (2004) p. 354. The island is sometimes referred to as ''Pomona'' (or ''Pomonia''), a name that stems from a 16th-century mistranslation by George Buchanan, which has rarely been used locally.

History

Prehistory

A charred hazelnut shell, recovered in 2007 during excavations in Tankerness on the Mainland, has been dated to 6820–6660 BC, indicating the presence of Mesolithic nomadic tribes. The earliest known permanent settlement is at Knap of Howar, a Neolithic farmstead on the island of Papa Westray, which dates from 3500 BC. The village of Skara Brae, Europe's best-preserved Neolithic settlement, is believed to have been inhabited from around 3100 BC. Other remains from that era include the Standing Stones of Stenness, the Maeshowe passage grave, the Ring of Brodgar and other standing stones. Many of the Neolithic settlements were abandoned around 2500 BC, possibly due to changes in the climate.

In September 2021, archaeologists announced the discovery of two polished stone balls in a 5500-year-old Neolithic burial tomb in Sanday. According to Dr Hugo Anderson, the second object was as the “size of a cricket ball, perfectly spherical and beautifully finished".

During the Bronze Age, fewer large stone structures were built (although the great ceremonial circles continued in use) as metalworking was slowly introduced to Britain from Europe over a lengthy period. There are relatively few Orcadian sites dating from this era although there is the impressive Plumcake Mound near the Ring of Brodgar and various island sites such as Tofts Ness on Sanday and the remains of two houses on Holm of Faray.

Iron Age

Excavations at Quanterness on the Mainland have revealed an Atlantic roundhouse built about 700 BC and similar finds have been made at Bu on the Mainland and Pierowall Quarry on Westray. The most impressive Iron Age structures of Orkney are the ruins of later round towers called " brochs" and their associated settlements such as the Broch of Burroughston and Broch of Gurness. The nature and origin of these buildings is a subject of debate. Other structures from this period include underground storehouses, and aisled roundhouses, the latter usually in association with earlier broch sites.

During the Roman invasion of Britain the "King of Orkney" was one of 11 British leaders who is said to have submitted to the Emperor Claudius in AD 43 at Camulodunum (modern Colchester). After the Agricolan fleet had come and gone, possibly anchoring at Shapinsay, direct Roman influence seems to have been limited to trade rather than conquest.Thomson (2005) pp. 4–6.
Polemius Silvius wrote a list of Late Roman provinces, which Seeck appended to his edition of the Notitia Dignitatum. The list names six provinces in Roman Britannia: the sixth is the dubious "Orcades provincia", the possible existence of which recent researches re-evaluate.

By the late Iron Age, Orkney was part of the Pictish kingdom, and although the archaeological remains from this period are less impressive, the fertile soils and rich seas of Orkney probably provided the Picts with a comfortable living. The Dalriadic Gaels began to influence the islands towards the close of the Pictish era, perhaps principally through the role of Celtic missionaries, as evidenced by several islands bearing the epithet "Papa" in commemoration of these preachers. Before the Gaelic presence could establish itself the Picts were gradually dispossessed by the North Germanic peoples from the late 8th century onwards. The nature of this transition is controversial, and theories range from peaceful integration to enslavement and genocide. It has been suggested that an assault by forces from Fortriu in 681 in which Orkney was "annihilated" may have led to a weakening of the local power base and helped the Norse come to prominence.

Norwegian rule

Both Orkney and Shetland saw a significant influx of Norwegian settlers during the late 8th and early 9th centuries. Vikings made the islands the headquarters of their pirate expeditions carried out against Norway and the coasts of mainland Scotland. In response, Norwegian king Harald Fairhair (Harald Hårfagre) annexed the Northern Isles, comprising Orkney and Shetland, in 875. (It is clear that this story, which appears in the '' Orkneyinga Saga'', is based on the later voyages of Magnus Barelegs and some scholars believe it to be apocryphal.) Rognvald Eysteinsson received Orkney and Shetland from Harald as an earldom as reparation for the death of his son in battle in Scotland, and then passed the earldom on to his brother Sigurd the Mighty.

However, Sigurd's line barely survived him and it was Torf-Einarr, Rognvald's son by a slave, who founded a dynasty that controlled the islands for centuries after his death. He was succeeded by his son Thorfinn Skull-splitter and during this time the deposed Norwegian King Eric Bloodaxe often used Orkney as a raiding base before being killed in 954. Thorfinn's death and presumed burial at the broch of Hoxa, on South Ronaldsay, led to a long period of dynastic strife.

Initially a pagan culture, detailed information about the turn to the Christian religion to the islands of Scotland during the Norse era is elusive. The ''Orkneyinga Saga'' suggests the islands were Christianised by Olaf Tryggvasson in 995 when he stopped at South Walls on his way from Ireland to Norway. The King summoned the ''jarl'' Sigurd the Stout and said, "I order you and all your subjects to be baptised. If you refuse, I'll have you killed on the spot and I swear I will ravage every island with fire and steel." Unsurprisingly, Sigurd agreed and the islands became Christian at a stroke,Thomson (2008) p. 69. quoting the '' Orkneyinga Saga'' chapter 12. receiving their own bishop in the early 11th century.

Thorfinn the Mighty was a son of Sigurd and a grandson of King Malcolm II of Scotland (''Máel Coluim mac Cináeda''). Along with Sigurd's other sons he ruled Orkney during the first half of the 11th century and extended his authority over a small maritime empire stretching from Dublin to Shetland. Thorfinn died around 1065 and his sons Paul and Erlend succeeded him, fighting at the Battle of Stamford Bridge in 1066. Paul and Erlend quarreled as adults and this dispute carried on to the next generation. The martyrdom of Magnus Erlendsson, who was killed in April 1116 by his cousin Haakon Paulsson, resulted in the building of St. Magnus Cathedral, still today a dominating feature of Kirkwall.

Unusually, from c. 1100 onwards the Norse ''jarls'' owed allegiance both to Norway for Orkney and to the Scottish crown through their holdings as Earls of Caithness. In 1231 the line of Norse earls, unbroken since Rognvald, ended with Jon Haraldsson's murder in Thurso. The Earldom of Caithness was granted to Magnus, second son of the Earl of Angus, whom Haakon IV of Norway confirmed as Earl of Orkney in 1236. In 1290, the death of the child princess Margaret, Maid of Norway in Orkney, en route to mainland Scotland, created a disputed succession that led to the Wars of Scottish Independence.Thompson (2008) pp. 146–47. In 1379 the earldom passed to the Sinclair family, who were also barons of Roslin near Edinburgh.

Evidence of the Viking presence is widespread, and includes the settlement at the Brough of Birsay, the vast majority of place names, and the runic inscriptions at Maeshowe.

Absorbed by Scotland

In 1468 Orkney was pledged by Christian I, in his capacity as King of Norway, as security against the payment of the dowry of his daughter Margaret, betrothed to James III of Scotland. However the money was never paid, and Orkney was absorbed by the Kingdom of Scotland in 1472.

The history of Orkney prior to this time is largely the history of the ruling aristocracy. From now on ordinary people emerge with greater clarity. An influx of Scottish entrepreneurs helped to create a diverse and independent community that included farmers, fishermen and merchants that called themselves ''comunitas Orcadie'' and who proved themselves increasingly able to defend their rights against their feudal overlords.

From at least the 16th century, boats from mainland Scotland and the Netherlands dominated the local herring fishery. There is little evidence of an Orcadian fleet until the 19th century but it grew rapidly and 700 boats were involved by the 1840s with Stronsay and later Stromness becoming leading centres of development. White fish never became as dominant as in other Scottish ports.

In the 17th century, Orcadians formed the overwhelming majority of employees of the Hudson's Bay Company in Canada. The harsh winter weather of Orkney and the Orcadian reputation for sobriety and their boat handling skills made them ideal candidates for the rigours of the Canadian north. During this period, burning kelp briefly became a mainstay of the islands' economy. For example on Shapinsay over of burned seaweed were produced per annum to make soda ash, bringing in £20,000 to the local economy. The industry collapsed suddenly in 1830 after the removal of tariffs on imported alkali.

Agricultural improvements beginning in the 17th century resulted in the enclosure of the commons and ultimately in the Victoria era the emergence of large and well-managed farms using a five-shift rotation system and producing high-quality beef cattle.

During the 18th century Jacobite risings, Orkney was largely Jacobite in its sympathies. At the end of the 1715 rebellion, a large number of Jacobites who had fled north from mainland Scotland sought refuge in Orkney and were helped on to safety in Sweden. In 1745, the Jacobite lairds on the islands ensured that Orkney remained pro-Jacobite in outlook, and was a safe place to land supplies from Spain to aid their cause. Orkney was the last place in the British Isles that held out for the Jacobites and was not retaken by the British Government until 24 May 1746, over a month after the defeat of the main Jacobite army at Culloden.

20th century

Orkney was the site of a Royal Navy base at Scapa Flow, which played a major role in World War I and II. After the Armistice in 1918, the German High Seas Fleet was transferred in its entirety to Scapa Flow to await a decision on its future. The German sailors opened the seacocks and scuttled all the ships. Most ships were salvaged, but the remaining wrecks are now a favoured haunt of recreational divers. One month into World War II, a German U-boat sank the Royal Navy battleship in Scapa Flow. As a result, barriers were built to close most of the access channels; these had the additional advantage of creating causeways enabling travellers to go from island to island by road instead of being obliged to rely on ferries. The causeways were constructed by Italian prisoners of war, who also constructed the ornate Italian Chapel.Thomson (2008) pp. 434–36.

The navy base became run down after the war, eventually closing in 1957. The problem of a declining population was significant in the post-war years, though in the last decades of the 20th century there was a recovery and life in Orkney focused on growing prosperity and the emergence of a relatively classless society. Orkney was rated as the best place to live in Scotland in both 2013 and 2014, and in 2019 the best place to live in the UK, according to the Halifax Quality of Life survey.

Overview of population trends

In the modern era, population peaked in the mid 19th century at just over 32,000 and declined for a century thereafter to a low of fewer than 18,000 in the 1970s. Declines were particularly significant in the outlying islands, some of which remain vulnerable to ongoing losses. Although Orkney is in many ways very distinct from the other islands and archipelagos of Scotland these trends are very similar to those experienced elsewhere."Orkney Islands"
Vision of Britain. Retrieved 21 September 2009. The archipelago's population grew by 11% in the decade to 2011 as recorded by the census. During the same period Scottish island populations as a whole grew by 4% to 103,702.

Geography

Orkney is separated from the mainland of Scotland by the Pentland Firth, a seaway between Brough Ness on the island of South Ronaldsay and Duncansby Head in Caithness. Orkney lies between 58°41′ and 59°24′ north, and 2°22′ and 3°26′ west, measuring from northeast to southwest and from east to west, and covers ."Get-a-Map"
Ordnance Survey. Retrieved 19 September 2009.

Orkney is separated from the Shetland Islands, a group farther out, by a body of water called the Fair Isle Channel.

The islands are mainly low-lying except for some sharply rising sandstone hills on Mainland, Rousay and Hoy (where the tallest point in Orkney, Ward Hill, can be found) and rugged cliffs on some western coasts. Nearly all of the islands have lochs, but the watercourses are merely streams draining the high land. The coastlines are indented, and the islands themselves are divided from each other by straits generally called "sounds" or "firths".Brown, John Flett "Geology and Landscape" in Omand (2003) p. 19.

The tidal currents, or "roosts" as some of them are called locally, off many of the isles are swift, with frequent whirlpools. The islands are notable for the absence of trees, which is partly accounted for by the strong winds.

Administration

The Local Government (Scotland) Act 1889 established a uniform system of county councils in Scotland and realigned the boundaries of many of Scotland's counties. Subsequently, Orkney County Council was created in 1890. Orkney County Council was based at the County Buildings in Watergate in Kirkwall.

Orkney is now administered by the Orkney Islands Council, a unitary island council created in the Scottish local government re-organization in 1975. In that year Scotland’s civil parishes were replaced by Community Council Areas, which had an advisory, rather than an administrative role. Orkney’s parishes were replaced by 20 CCA’s covering 34 rural settlements. Ten of these CCA’s were formed on Mainland, replacing 13 civil parish and two burgh councils.

The original civil parishes were as follows:

# Birsay and Harray (united in the 19th century)
# Cross and Burness (united at an unknown date)
# Eday
# Evie and Rendall (united in the 16th century)
# Firth
# Holm
# Hoy & Graemsay
# Kirkwall & St Ola
# Lady
# Orphir
# Papa Westray
# Rousay & Egilsay
# Sandwick
# Shapinsay
# South Ronaldsay and Burray (union of ancient parishes of St Mary's, St Peter's, and Burray)
# St Andrews and Deerness (united at an unknown date)
# Stenness
# Stromness
# Stronsay (union of ancient parishes of Lady, St Nicholas, and Stronsay St Peter's)
# Walls and Flotta (united at an unknown date)
# Westray

Demographics

Genetic studies have shown that 25% of the gene pool of Orkney derives from Norwegian ancestors who occupied the islands in the 9th century.

Islands

The Mainland

The Mainland is the largest island of Orkney. Both of Orkney's burghs, Kirkwall and Stromness, are on this island, which is also the heart of Orkney's transport system, with ferry and air connections to the other islands and to the outside world. The island is more heavily populated (75% of Orkney's population) than the other islands and has much fertile farmland. The Mainland is split into areas called East and West Mainland. These areas are determined by whether they lie east or west of Kirkwall. The bulk of the mainland lies west of Kirkwall, with comparatively little land east of Kirkwall.
West Mainland parishes are:
Stromness, Sandwick, Birsay, Harray, Stenness, Orphir, Evie, Rendall and Firth.
East Mainland Parishes are:
St Ola, Tankerness, St Andrews, Holm and Deerness.

The island is mostly low-lying (especially East Mainland) but with coastal cliffs to the north and west and two sizeable lochs: the Loch of Harray and the Loch of Stenness. The Mainland contains the remnants of numerous Neolithic, Pictish and Viking constructions. Four of the main Neolithic sites are included in the Heart of Neolithic Orkney World Heritage Site, inscribed in 1999.

The other islands in the group are classified as north or south of the Mainland. Exceptions are the remote islets of Sule Skerry and Sule Stack, which lie west of the archipelago, but form part of Orkney for local government purposes. In island names, the suffix "a" or "ay" represents the Norse ''ey'', meaning "island". Those described as " holms" are very small.

The North Isles

The northern group of islands is the most extensive and consists of a large number of moderately sized islands, linked to the Mainland by ferries and by air services. Farming, fishing and tourism are the main sources of income for most of the islands.

The most northerly is North Ronaldsay, which lies beyond its nearest neighbour, Sanday. To the west is Westray, which has a population of 550. It is connected by ferry and air to Papa Westray, also known as "Papay". Eday is at the centre of the North Isles. The centre of the island is moorland and the island's main industries have been peat extraction and limestone quarrying.

Rousay, Egilsay and Gairsay lie north of the west Mainland across the Eynhallow Sound. Rousay is well known for its ancient monuments, including the Quoyness chambered cairn and Egilsay has the ruins of the only round-towered church in Orkney. Wyre to the south-east contains the site of Cubbie Roo's castle. Stronsay and Papa Stronsay lie much further to the east across the Stronsay Firth. Auskerry is south of Stronsay and has a population of only five. Shapinsay and its Balfour Castle are a short distance north of Kirkwall.

Other small uninhabited islands in the North Isles group include Calf of Eday, Damsay, Eynhallow, Faray, Helliar Holm, Holm of Faray, Holm of Huip, Holm of Papa, Holm of Scockness, Kili Holm, Linga Holm, Muckle Green Holm, Rusk Holm and Sweyn Holm.

The South Isles

The southern group of islands surrounds Scapa Flow. Hoy, to the west, is the second largest of the Orkney Isles and Ward Hill at its northern end is the highest elevation in the archipelago. The Old Man of Hoy is a well-known seastack. Graemsay and Flotta are both linked by ferry to the Mainland and Hoy, and the latter is known for its large oil terminal. South Walls has a 19th-century Martello tower and is connected to Hoy by the Ayre.
Burray lies to the east of Scapa Flow and is linked by causeway to South Ronaldsay, which hosts cultural events the Festival of the Horse and the Boys' Ploughing Match on the third Saturday in August. It is also the location of the Neolithic Tomb of the Eagles. South Ronaldsay, Burray, Glimps Holm, and Lamb Holm are connected by road to the Mainland by the Churchill Barriers.

Uninhabited South Islands include Calf of Flotta, Cava, Copinsay, Corn Holm, Fara, Glimps Holm, Hunda, Lamb Holm, Rysa Little, Switha and Swona. The Pentland Skerries lie further south, closer to the Scottish mainland.

Geology

The superficial rock of Orkney is almost entirely Old Red Sandstone, mostly of Middle Devonian age.Marshall, J.E.A., & Hewett, A.J. "Devonian" in Evans, D., Graham C., Armour, A., & Bathurst, P. (eds) (2003) ''The Millennium Atlas: petroleum geology of the central and northern North Sea''. As in the neighbouring mainland county of Caithness, this sandstone rests upon the metamorphic rocks of the Moine series, as may be seen on the Mainland, where a narrow strip is exposed between Stromness and Inganess, and again in the small island of Graemsay; they are represented by grey gneiss and granite.

The Middle Devonian is divided into three main groups. The lower part of the sequence, mostly Eifelian in age, is dominated by lacustrine beds of the lower and upper Stromness Flagstones that were deposited in Lake Orcadie. The later Rousay flagstone formation is found throughout much of the North and South Isles and East Mainland.Brown, John Flett "Geology and Landscape" in Omand (2003) pp. 4–5.

The Old Man of Hoy is formed from sandstone of the uppermost Eday group that is up to thick in places. It lies unconformably upon steeply inclined flagstones, the interpretation of which is a matter of continuing debate.

The Devonian and older rocks of Orkney are cut by a series of WSW–ENE to N–S trending faults, many of which were active during deposition of the Devonian sequences. A strong synclinal fold traverses Eday and Shapinsay, the axis trending north-south.

Middle Devonian basaltic volcanic rocks are found on western Hoy, on Deerness in eastern Mainland and on Shapinsay. Correlation between the Hoy volcanics and the other two exposures has been proposed, but differences in chemistry mean this remains uncertain. Lamprophyre dykes of Late Permian age are found throughout Orkney.

Glacial striation and the presence of chalk and flint erratics that originated from the bed of the North Sea demonstrate the influence of ice action on the geomorphology of the islands. Boulder clay is also abundant and moraines cover substantial areas.

Climate

Orkney has a cool temperate climate that is remarkably mild and steady for such a northerly latitude, due to the influence of the Gulf Stream. The average temperature for the year is ; for winter and for summer ."Regional mapped climate averages"
Met Office. Retrieved 19 September 2009.

The average annual rainfall varies from to . Winds are a key feature of the climate and even in summer there are almost constant breezes. In winter, there are frequent strong winds, with an average of 52 hours of gales being recorded annually.

To tourists, one of the fascinations of the islands is their "nightless" summers. On the longest day, the sun rises at 04:00 and sets at 22:29 BST and complete darkness is unknown. This long twilight is known in the Northern Isles as the "simmer dim". Winter nights are long. On the shortest day the sun rises at 09:05 and sets at 15:16. At this time of year the aurora borealis can occasionally be seen on the northern horizon during moderate auroral activity.

The first averages table below is for the largest settlement Kirkwall's weather station, the second is for the Loch of Hundland, a rural location to the northwest of Mainland Orkney.

Politics

Orkney is represented in the House of Commons as part of the Orkney and Shetland constituency, which elects one Member of Parliament (MP), the current incumbent being Alistair Carmichael. This seat has been held by the Liberal Democrats or the former Liberal Party since 1950, longer than any other they represent in Great Britain.

In the Scottish Parliament the Orkney constituency elects one Member of the Scottish Parliament (MSP) by the first past the post system. The current MSP is Liam McArthur of the Liberal Democrats. Before McArthur the MSP was Jim Wallace, who was previously Deputy First Minister. Orkney is within the Highlands and Islands electoral region.

Orkney Islands Council consists of 21 members, 18 of whom are independent, that is they do not stand as representatives of a political party. Two councillors are members of the indigenous Orkney Manifesto Group, and the remaining councillor represents the Scottish Greens.

The Orkney Movement, a political party that supported devolution for Orkney from the rest of Scotland, contested the 1987 general election as the Orkney and Shetland Movement (a coalition of the Orkney movement and its equivalent for Shetland). The Scottish National Party chose not to contest the seat to give the movement a "free run". Their candidate, John Goodlad, came 4th with 3,095 votes, 14.5% of those cast, but the experiment has not been repeated.

In the 2014 Scottish independence referendum 67.2% of voters in Orkney voted No to the question "Should Scotland be an independent country?" This was the highest No vote by percentage in any council area in Scotland. Turnout for the referendum was at 83.7% in Orkney with 10,004 votes cast in the area against independence by comparison to 4,883 votes for independence.

In the 2016 United Kingdom European Union membership referendum 63.2% of voters in Orkney voted Remain.

In 2022, as part of the Levelling Up White Paper, an "Island Forum" was proposed, which would allow local policymakers and residents in Orkney to work alongside their counterparts in Shetland, the Western Isles, Anglesey and the Isle of Wight on common issues, such as broadband connectivity, and provide a platform for them to communicate directly with the government on the challenges island communities face in terms of levelling up.

Economy

The soil of Orkney is generally very fertile and most of the land is taken up by farms, agriculture being by far the most important sector of the economy and providing employment for a quarter of the workforce according to a 2008 report. More than 90% of agricultural land is used for grazing for sheep and cattle, with cereal production utilising about 4% () and woodland occupying only ."Orkney Economic Review No. 23." (2008) Kirkwall. Orkney Islands Council.

Fishing has declined in importance, but still employed 345 individuals in 2001, about 3.5% of the islands' economically active population, the modern industry concentrating on herring, white fish, lobsters, crabs and other shellfish, and salmon fish farming.

A 2009 report indicated the traditional sectors of the economy export beef, cheese, whisky, beer, fish and other seafood. In recent years there has been growth in other areas including tourism, food and beverage manufacture, jewellery, knitwear, and other crafts production, construction and oil transportation through the Flotta oil terminal. Retailing accounts for 17.5% of total employment, and public services also play a significant role, employing a third of the islands' workforce."Orkney Economic Update"
(1999) (pdf) HIE. Retrieved 20 September 2009. There are two Scotch whisky distilleries in Orkney (Scapa distillery and the Highland Park distillery).

In 2007, of the 1,420 VAT registered enterprises 55% were in agriculture, forestry and fishing, 12% in manufacturing and construction, 12% in wholesale, retail and repairs, and 5% in hotels and restaurants. A further 5% were public service related. 55% of these businesses employ between 5 and 49 people.

A new report, published in September 2020, provided updates about several significant aspects of the economy:

there are around 1,500 businesses on the island. More than 90% have fewer than 10 employees. stimates indicate11,000 jobs, of which around 5,000 are part-time ... There's not much manufacturing, beyond food and drink processing (think cheese and whisky), and apart from the Flotta oil terminal, it lacks big private employers ... Fisheries off Orkney are only half as important to employment as in Shetland, and farming is roughly twice as important.

The report expressed concern about the loss of business caused by the worldwide COVID-19 pandemic: "blighting business activity, travel and tourism". On 1 February 2021, a new plan (subsequent to previous funding schemes) from the Scottish government was announced. The Island Equivalent Payment Fund was designed to "provide the equivalent of Level 4 support to eligible businesses in Orkney and other island areas".

Tourism

A report published in February 2020 stated that spending by visitors increased from £49.5 million in 2017 to £67.1 million in 2019, making this a significant sector of the economy. The primary attractions that encourage tourism include the "Heart of Neolithic Orkney" on the main island, defined as "a group of 5,000-year-old sites that include the preserved village of Skara Brae and the Ring of Brodgar stone circle". The Hoy area's landscape is also attractive to visitors, "with its scattered woodland, steep valleys, high cliffs and the famous Old Man, a withered red sandstone sea stack". In 2017, 62% of tourists to Orkney visited for its heritage. The UHI Archaeology Institute have led excavations at the Ness of Brodgar, contributing to tourism to the area and driving interest in archaeology.

During most years, the islands are the home of several international festivals, including the Orkney International Science Festival in September, a folk festival in May, and the St Magnus International Arts Festival in June.

The volume of visitors arriving on ferries declined substantially in 2020, by 71%,
due to the COVID-19 pandemic A news report added that cruise ships also did not arrive and there were "no day trippers and no holiday lets" as of 25 April 2020. Several major events were cancelled: St Magnus Festival, Orkney Folk Festival, Stromness Shopping Week and the Agricultural Shows.

Power

Orkney has significant wind and marine energy resources, and renewable energy has recently come into prominence. Although Orkney is connected to the mainland, it generates over 100% of its net power from renewables according to a 2015 report. This comes mainly from wind turbines situated across Orkney.

The European Marine Energy Centre (EMEC) is a research facility operating a grid-connected wave test site at Billia Croo, off the west coast of the Orkney Mainland, and a tidal power test site in the Fall of Warness, off the northern island of Eday. At the official opening of the Eday project the site was described as "the first of its kind in the world set up to provide developers of wave and tidal energy devices with a purpose-built performance testing facility."

During 2007 Scottish and Southern Energy plc in conjunction with the University of Strathclyde began the implementation of a Regional Power Zone in the Orkney archipelago, involving "active network management" that will make better use of existing infrastructure and allow a further 15 MW of new "non-firm generation" output from renewables onto the network. 1.5 MW of polymer electrolyte membrane electrolysis form a partial hydrogen economy for hydrogen vehicles and district heating, and grid batteries and electric vehicles also use local energy.

Orkney has one of the highest uptakes of electric vehicles in the UK with more than 2% of the vehicles on the road being electric, as of 2019.

Hydrogen manufacturing

A March 2019 report by the BBC
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