Grenada is a liberal, parliamentary democracy, has a functioning court system, low rates of crime, and is devoid of political violence. The country’s legal framework for business is strong. 2016 saw revisions to several bills, and the launch of a new Government investment incentives regime. This new regime positively impacts the investment climate, ensuring transparency, equitable practices; adherence to the rule of law, and an established standard for potential investors to Grenada.
The objective of the new regime is to streamline bureaucratic and legal processes which for years have been a huge challenge to the investment climate. While failed attempts were made at constitutional reform in 2016, the revisions made to key economic bills will serve to bolster the investment climate in Grenada. Some of these bills are: value added tax, property transfer tax, investment, excise tax, customs (service charge), and bankruptcy and insolvency bills.
Grenada’s ranking on the World Bank’s Doing Business Indicator slipped from 130 in 2015 to 135 in 2016. However, while there have been positive attempts to improve the country’s business climate, public statements and actions have cast doubt on the inviolability of contracts, particularly in the utility sector, and most recently within the hotel and tourism industry. This will require careful scrutiny throughout 2017 pending final decisions.
There were notable investments throughout 2017 within the tourist and construction industries, particularly through the Citizenship by Investment Program. The construction of several five star resorts is currently underway along with the refurbishing of several tourist attractions–some of which are scheduled for completion by 2019. The most recent addition to Grenada’s fleet of hotels is the all-inclusive Sandals Luxury Resort. This resort has attracted an affluent clientele of repeat guests, several of which are interested in doing business in Grenada.
The tourism sector attracts the most foreign direct investment followed by construction, retail and duty free outlets; and most recently agriculture. There have also been expressed interests to invest in Grenada’s energy sector by a number of private and Governmental agencies.
The availability of tax incentives, equitable treatment of national and foreign investors, political stability, good infrastructure, and a favorable location with untapped markets, makes Grenada an ideal and strategic destination for investments. To date, the main countries investing in Grenada are The United States, China, Great Britain and Trinidad and Tobago.
|TI Corruption Perceptions Index||2016||56 of 175||http://www.transparency.org/
|World Bank’s Doing Business Report “Ease of Doing Business”||2016||138 of 190||doingbusiness.org/rankings|
|Global Innovation Index||2016||N/A||https://www.globalinnovationindex.org/
|U.S. FDI in partner country ($M USD, stock positions)||2015||$7 million USD||http://www.bea.gov/
|World Bank GNI per capita||2015||$8,650 USD||http://data.worldbank.org/