Roseau, Oct. 31, 2022 (GLOBE NEWSWIRE) -- Despite the difficulties of the current global moment, Dominica has achieved significant economic growth over the last few years. The country is also drawing ever closer to becoming the world's first climate-resilient country. These achievements are, in part, the result of the government’s support of climate-allied industries, as well as its strategic investment in public infrastructure. In these initiatives, so central to Dominica’s growth, the country’s Citizenship by Investment (CBI) Programme has played a pivotal role.
Citizenship by Investment allows individuals to gain citizenship to a country by investing a certain amount in the country's economy. In Dominica, revenues from its Citizenship by Investment (CBI) programme have been used to support a number of major development projects. The government’s allocation of these funds has also proved to be startlingly successful, with Dominica one of the few countries solidly on course to achieve its Sustainable Development Goals (SDGs). A constant flow of foreign investment, via its CBI programme, has allowed Dominica to set long-term goals that exceed sustainability expectations on a global scale.
Since Hurricane Maria made landfall in 2017, Dominica has been building back better. It has focused on developing its infrastructure, particularly the construction of sustainable and resilient developments, from housing to hotels, schools and hospitals. All these developments are supported by revenue brought in by its CBI programme.
CBI funds were used, to great effect, to rebuild and restore transport infrastructure that had been damaged and destroyed by the hurricane. Following the disaster, the Citizenship by Investment programme supported the restoration of bridges and the repair of over 15 sections of damaged roads, as noted in a recent PricewaterhouseCoopers (PwC) report. Many other restoration projects are still underway. As the report notes, CBI Programme-funded capital has played a critical role in restoring the infrastructure of the country, thereby providing a significant boost to Dominica’s economic future.
Along with upscaling its infrastructure, the small-island Caribbean country has stepped up to build a more robust economy. According to the UN, during the advanced phase of Hurricane Maria's recovery in 2019, Dominica actually witnessed one of the greatest GDP growths in the Caribbean region.
Going forward, the government of Dominica in a recent budget (2020-2021) has promised to invest XCD 427.2 million in the public sector. It is prioritising five areas for funding allocation: housing (27.5%); the digital economy (16.5%); environment, rural modernization and indigenous Kalinago upliftment (14.5%); healthcare (10.1%); and blue and green economy, agriculture, and food security (8.7%).
All these efforts have helped the country to emerge as a secure economy and a safe place for investment. High-net-worth individuals and wealthy investors are now viewing Dominica as a place which shares friendly ties to the world's leading economies while being less vulnerable to economic shocks – this combination has made it an asset for international investment.
The Citizenship by Investment programme in Dominica offers two options for investment. The primary route is through the Economic Diversification Fund (EDF), a government-authorized fund requiring a single disbursement. Collected funds are channelled into the development and upliftment of infrastructure, including houses, schools, hospitals and medical centres, bridges and roads. Economic Diversification funds are also directed towards advancing the island’s tourism industry, as well as its agriculture sector.
Funds from the EDF have thus helped build strong and resilient infrastructure in the country. The government has also used the funds to build numerous housing units while constructing and rehabilitating tourism sites and roads to increase the ease of travel on the island. It has also used these funds to build a new school with a state-of-the-art auditorium, green areas, and sporting facilities; a national library; healthcare centres including consultation areas, pharmacies and accommodation for medical staff; and new government headquarters.
Another investment option available under the Citizenship by Investment programme is Real Estate – which, as its name suggests, allows individuals to invest in government-approved properties. These properties include world-class hotel chains, such as Hilton, Kempinski and Marriott, as well as boutique hotels, like Sanctuary Rainforest, Secret Bay and Jungle Bay.
Dominica’s Citizenship by Investment programme was established in 1993; since then it has attracted businessmen and investors from all over the world. The significant Foreign Direct Investment (FDI) generated by the programme has helped the country transition from an agriculture-based economy to a tourism and service-based one.
In its initial years, during the 1990s, CBI was introduced as an alternative solution for those looking to acquire a secure and tranquil second home. But over the last 30 years, Dominica’s programme has become the premium standard for investment citizenship. The CBI Index, published annually by the Financial Times’s PWM Magazine, has ranked it the world's premier programme for five consecutive years.
There are many benefits to alternative citizenship, beyond the major advantage of holding dual or multiple nationalities. CBI helps individuals to expand beyond the national boundaries of their birth, opening up a wide range of international opportunities, such as the ability to travel to the many countries offering visa-free access to Dominican citizens. This has helped many investors to finally travel freely – whether for business or leisure. Other significant benefits of becoming a Dominican citizen include:
- Low tax rates,
- Family reunification,
- Health and education,
- Domestic well-being,
- A sense of community, and
- Economic opportunities.
People who become citizens of Dominica by virtue of its economic citizenship programme enjoy the same rights as those born in the country, including the ability to operate or do business in the country. This is particularly notable, since the country scored 61.07 in the Global Rankings of "Ease of Doing Business", making it one of the most promising business hubs in the region.
Nevertheless, though the programme drives vast investment into the country, the government maintains diligence in CBI application procedures. All potential applicants and their dependants over 16 undergo vigorous, stringent and robust due diligence procedures via government-authorized third-party agencies. Critical components of the due diligence process include reviewing applicants’ financial sources, personal references, identification documents and criminal history.
All these aspects ensure that Dominica remains a secure, stable and internationally well-connected country from which to operate a business or settle one’s family. The government, through its judicious allocation of CBI funds and its emphasis on building and developing infrastructure and industry, has ensured that this will remain the case for years to come.
