Jamaica: Investing

FDI in Figures

According to UNCTAD's 2022 World Investment Report, FDI flows to Jamaica accounted for USD 321 million in 2021, up from USD 265 million in 2020 (+20.9%), but were still below the three-year average recorded before the pandemic (USD 776 million). The FDI stock reached USD 17.8 billion in 2021 (around 117.7% of GDP), making Jamaica the largest recipient of FDI among small island developing states. Jamaica's economy is primarily service-based, with tourism, telecommunications, and financial services being the most significant sectors attracting FDI. The tourism industry accounts for more than 60% of total FDI inflows; while the telecommunications sector has also attracted significant FDI, with major telecom players such as Digicel and Cable & Wireless making significant investments in the country. The bauxite sector has also attracted foreign investment. Over 60 outsourcing firms operate in Jamaica, generating USD 700 million in revenue and employing roughly 40,000 persons, according to data from the Jamaican Government’s marketing agency, Jampro. As per the latest figures from the Bank of Jamaica, in the first three quarters of 2022, FDI inflows reached USD 269.6 million, marking a decrease of 15.4% compared to the same period one year earlier.

The country aims to become a logistical hub between North and South America, which requires the development of transport infrastructure (maritime, aviation, road and rail) and logistics. The Jamaican Government offers incentives such as easy payment methods, grace periods for tax payments and duty-free imports to foreign investors. The country has many assets, including its strategic geographical location, rich natural resources and a significant capacity to receive large numbers of tourists. Jamaica allows both domestic and foreign private entities to establish and own business enterprises and engage in all forms of remunerative activities. There are no restrictions on foreign ownership or control, and local laws do not differentiate between local and foreign investors. Market access is not impeded by sector-specific limitations, although labour, registration, and environmental requirements must be met. No formal screening mechanisms exist for foreign investments. The government also established Special Economic Zones in which operators benefit from a 12.5% reduced corporate income tax rate; customs duty relief, General Consumption Tax relief; employment tax credit; promotional tax credit on research and development; capital allowance; and other incentives. Nevertheless, high criminality (e.g. security is required to protect the physical infrastructure of most properties and Jamaica's murder rate remains one of the highest in the hemisphere), a significant number of drug traffickers, corruption and the risk of natural catastrophes remain hindrances to FDI. Overall, Jamaica ranks 39th out of 176 countries in the 2023 Index of Economic Freedom and 69th out of 180 in the latest Corruption Perception Index.

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Latest Update: September 2023