Grenada: Investing

FDI in Figures

According to UNCTAD's 2021 World Investment Report, FDI inflows to Grenada reached USD 146 million in 2020, a slight increase over 2019 (USD 131 million), despite the global economic crisis triggered by the Covid-19 pandemic. The stock of FDI remained high at an estimated USD 1.4 billion in 2020. Tourism attracts most 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 largest investor countries in Grenada are Trinidad and Tobago, the U.S. and Great Britain.

En 2020, Grenada ranked 146th in the latest Doing Business report published by the World Bank, gaining one spot compared to the previous edition. Grenada adopts a liberal approach to FDI. According to the report, the country made starting a business easier by introducing online name search. 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 the country 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. 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.

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Latest Update: February 2023