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Foreign Investment in Dominica

Britsh Foreign Investor in Dominica on Hotel Site shaking hands with Workers

Foreign investment in Dominica refers to the inflow of capital from overseas that supports economic growth, job creation, and infrastructure development. As of 2024, net foreign direct investment (FDI) accounted for approximately 5.34 % of GDP (a decline from 2023’s 7.22 %).

In 2023, FDI amounted to about US$14 million, while net inflows totalled US$127.5 million according to Dominica’s balance‑of‑payments data. Although total annual flows are modest in absolute terms (roughly US$0.02 billion), investment per unit of GDP remains above the global average, reflecting Dominica’s targeted appeal for strategic capital.

Back and History

Foreign investment in Dominica has become a key economic driver since the early 1990s, largely fuelled by the Citizenship by Investment Programme, infrastructure partnerships, and policy reforms. Investment has poured into tourism, agriculture, offshore financial services, and renewable energy, helping the island recover from disasters and modernize its economy.

Dominica began attracting official FDI through its Citizenship by Investment (CBI) programme, launched in 1993. Administered via the Economic Diversification Fund (EDF), it offers citizenship in return for contributions of USD 100,000 to USD 200,000 toward approved development projects. EDF revenues have funded climate‑resilient infrastructure, schools, hospitals, and the new International Airport project.

Dominica’s Constitution ensures foreign and domestic investors receive equal treatment, allowing unrestricted ownership of businesses and real estate. The Invest Dominica Authority and Ministry for Trade promote investor entry and coordinate regulatory paperwork.

Key Drivers of Inward Investment

  • Citizenship programme: Since the mid-1990s, CBI has been the largest source of FDI, accounting for over one-quarter of GDP at its peak and powering public and private infrastructure improvements.
  • Offshore financial services: Dominica offers zero taxation on foreign income and strong confidentiality rules. These advantages are regulated by the Financial Services Unit under the Ministry of Finance, managing offshore banks, credit unions, and related entities.
  • Bilateral cooperation: Partnerships with countries like China support rebuilding efforts post‑Hurricane Maria, including airport expansion and school reconstruction, bringing direct investment and technical expertise.

Economic and Institutional Impact

Foreign investment has helped diversify Dominica’s economy, strengthening tourism, agriculture, and eco-tourism sectors. It has supported initiatives under government programmes like the Emerging Agri‑Processing Strategy, Renewable Energy Development, and climate resilience plans. The Financial Services Unit (FSU) enforces strict standards and anti-money-laundering rules to maintain investor trust and international credibility.

Challenges and Future Trends

While relative FDI percentages are promising, actual flows remain small in quantity. Ongoing challenges include global competition for investment, ensuring transparency in the CBI programme, and building resilience to climate shocks. Recent technical cooperation focuses on transforming FDI into sustainable, environmentally conscious ventures, guided by the IDB’s capacity building for Invest Dominica Authority.