Grenada: Investing

FDI in Figures

According to UNCTAD's 2022 World Investment Report, FDI inflows to Grenada decreased to USD 144 million in 2021, from 149 million one year earlier, and well below the pre-pandemic level of 2019 (USD 199 million). In 2021, the total stock FDI stood at USD 1.8 billion, representing around 165.1% of the country’s GDP. Tourism attracts the vast majority of FDI, followed by the construction sector. Proceeds from the Citizenship-by-Investment (CBI) programme are attracting more and more investments, although regulatory measures have also increased following a failed aquaculture project. The United States is the largest source of FDI into Grenada, followed by the United Kingdom, Canada, and China.

In order to further attract investment, the government made legislative revisions to value-added tax, property transfer tax, investment, excise tax, customs, and bankruptcy and insolvency acts. The island, whose main advantage is its large tourism potential, offers the possibility to set up a business within a short time frame (31 days) and tax incentives to investors. Equal treatment to national and foreign investors, and there are no limits on foreign ownership or control. However, foreign investors employed in Grenada are required to obtain a work permit, renewable annually. Additionally, political stability and good-quality infrastructure make Grenada a strategic destination for investment. Nevertheless, the country is considered a non-cooperating country in the fight against tax evasion. Even if Grenada improved the resolution of insolvency, stamp tax rates have increased and slightly deteriorated the business climate in Grenada. The government of Grenada identified five priority sectors for investment: tourism and hospitality services, education and health services, information and communication technology, agribusiness, and energy development; with the Grenada Investment Development Corporation (GIDC) as the official investment agency (it revies the submitted investment proposals and advises on the requirements and processes for doing business in Grenada). The tourism sector attracts the greatest amount of foreign investment, but the recent discovery of natural gas offshore could make the energy sector the biggest receiver of investment in the coming years. The country signed up for China's Belt and Road funding, and China submitted a development plan for Grenada, which includes the construction of large projects, including a highway connecting major towns and a railway encircling it. Overall, Grenada ranks 51th out of 180 countries in the latest Corruption Perception Index.

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Latest Update: September 2023