Gizane Campos With increasing global uncertainty, economic instability, and climate change, developing nations are crafting solutions to create new revenue streams, strengthen their economies, and fight climate change.
But given the range of economic avenues available, why are developing nations replicating the Caribbean’s CBI blueprint? At the 29th United Nations Climate Change Conference in November 2024, President H.E. David Adeang of the Republic of Nauru stated, “It [investment migration] provides small and vulnerable nations like ours with a powerful mechanism to mitigate sustainability risks and enhance climate resilience.”
What the CBI Industry Offers Developing Nations
Over the past 40 years, citizenship by investment has gone from an economic experiment to a development tool. St Kitts and Nevis was the first to pioneer economic citizenship, with several other island nations following suit. Today, Dominica, St Kitts and Nevis, Grenada, Antigua and Barbuda, and St Lucia channel CBI funds into key sectors of the economy.
CBI makes up 30 percent of GDP and 50 percent of government liquidity in some countries. The evolution of CBI programs has strategized the approach with investments now focused on long-term sustainability and development, leading other developing nations, such as Nauru and the Solomon Islands, to follow the Caribbean’s model and adapt to changing financial and geopolitical landscapes.
Climate resilience
Government fund donations are one of the primary investment options for Caribbean citizenship programs. Dominica, St Kitts and Nevis, and Grenada have explicitly incorporated climate resilience components into their CBI programs, directing investments toward enhancing infrastructure and community preparedness against natural disasters.
Funds are allocated toward sustainable infrastructure, disaster preparedness, and environmental conservation. Donations made to the St Kitt’s and Nevis Sustainable Island State Contribution support sustainable industries, transition to green energy production, and encourage eco-friendly practices.
As part of the OECS GEOBUID program introduced to unlock the Eastern Caribbean’s geothermal potential, Dominica’s CBI program has funded the construction of a 10-megawatt geothermal power plant–the first in the Caribbean Community (CARICOM).
Speaking on the project’s progress, which is due to be completed by the end of 2025, Hon. Dr. Vince Henderson, Minister for Foreign Affairs, International Business, Trade, and Energy, mentioned, “Dominica is making significant strides in geothermal energy, with innovative investments to deliver clean, low-cost electricity to its citizens and thereafter, the Eastern Caribbean.”
Economic diversification
What Caribbean countries have showcased is that Caribbean citizenship by investment programs diversify their economies. Developing nations can reduce reliance on volatile or seasonal industries like tourism or limited natural resources. Moreover, it’s an alternative to traditional sectors like agriculture, which faces increasing threats of climate change in many regions.
Foreign investment
It’s difficult to measure the value of second citizenship in the Caribbean. Joe Rice, Global Citizen Solutions Senior Immigration Consultant, highlighted this by adding, “Caribbean countries are very popular for American clients. As well as having a plan B, they’re looking to invest in real estate, retirement, get a property as a source of rental income, or maybe just to spend a few months of the year there.”
By offering an alternative citizenship in exchange for investment, developing nations attract foreign investment from high-net-worth individuals, injecting substantial capital into their economy through donations, real estate investment, and business development.
Proven revenue
Caribbean countries have shown that CBI can generate hundreds of millions in government revenue without increasing taxes on local citizens. Prime Minister Dickon Mitchell of Grenada stated in 2023, “The CBI program is doing quite well. It has, for the first quarter of the year, exceeded the budgetary projections quite considerably.” The Grenada citizenship by investment program generated $402 million by the end of 2023, 27.7 percent of the nation’s total GDP.
In the fiscal year 2022/23, Dominica’s CBI revenues reached an unprecedented 37 percent of the country’s GDP, amounting to approximately $232 million. This marked a substantial increase from previous years and was pivotal in the nation’s post-pandemic economic recovery.
Disaster resistance
Industries like tourism and agriculture have proven to be vulnerable to economic downturns, pandemics, national disasters, and conflicts. The influx of capital remains consistent as the number of wealthy investors prioritizing stability and international mobility increases. Though the COVID-19 Pandemic brought global tourism to a standstill throughout 2020, the Dominica citizenship by investment program saw its revenue increase from $67.5 million in 2019-20 to $110 million in 2020-21.
Academic development
Educational development is the cornerstone of economic growth, social progress, and innovation. A portion of CBI revenues has been allocated to expand and upgrade Clarence Fitzroy Bryant College (CFBC), one of the primary higher education institutions in St Kitts.
The Antigua University of the West Indies Fund option of the country’s CBI program directly contributes to educational development by providing financial support to the University of the West Indies (UWI) campus in Antigua. Funds are allocated towards enhancing academic programs, expanding infrastructure, and improving student services at the university.
Debt reduction
Unlike loans or tax increases, capital inflow from citizenship programs provides a direct, debt-free financial boost that governments can use to pay off existing national debt.
Prime Minister Gaston A. Browne of Antigua and Barbuda affirmed this by pointing out, “Prior to about ten years ago, every single country in the Caribbean that has a CBI program would have had a very large debt overhang. And what we’ve seen since then is a systematic reduction in debt-to-GDP, as these countries utilize some of their investment migration proceeds to reduce debt.”
The Nauru Department of Finance reported a national debt of $34 million in 2022, and the newly introduced Nauru citizenship by investment program will alleviate national debt while reducing reliance on additional government loans.
Tourism and real estate growth
The Caribbean real estate investment option to obtain Caribbean citizenship by investment has attracted significant investment in luxury properties and eco-friendly boutique hotels. This not only stimulates local real estate markets but attracts affluent tourists seeking high-end accommodations.
Antigua and Barbuda reported a 46 percent rise in tourist arrival in June 2024 compared to the previous year. Demonstrating to the transformative potential of prominent CBI-funded real estate projects such as Royalton Antigua and Hammock Cove Resort & Spa.
Housing access
After Hurricane Maria struck Dominica on 18 September 2017, 90 percent of the island’s buildings were either damaged or destroyed, displacing thousands of inhabitants. With financial support from its CBI program, Dominica established the Resilient Housing Project, an initiative to rebuild and strengthen homes following the devastation caused by Hurricane Maria.
As part of the climate-smart home initiative, the St Kitts and Nevis government, using CBI proceeds, began the construction of 26 climate-resilient homes for low-income families in Sandy Point.
Infrastructure development
Citizenship by investment, whether through donations or infrastructure projects, contributes to infrastructure development by providing much-needed capital for constructing roads, schools, hospitals, and other critical facilities. Dominica’s citizenship program has been the financial backbone behind the construction of the Dominica International Airport.
Easy implementation
Caribbean countries operate a standardized system, requiring investors to employ an Authorized Agent to apply for citizenship, which streamline procedures, ensuring consistency and reducing administrative complexity.
These clear and established guidelines make it simpler for both applicants and governments to navigate the program efficiently. Global Citizen Solutions St Lucia CIP License allows the Government of St Lucia to manage the process efficiently, providing a structured framework that meets international regulations and attracts foreign investment.
According to Laura Madrid, the head of Intelligence Unit Research at Global Citizen Solutions, “CBI schemes in the Caribbean are not just financial lifelines, they are engines of resilience and sustainability. When strategically managed, they can transform foreign investment into climate-resilient homes, renewable energy projects, and foster economic diversification, helping small island nations weather both financial and environmental challenges.”
What this Means for Global Investors
Citizenship by investment is a win-win situation for both CBI nations and global citizens, where the investment helps stimulate economic growth and provide long-term stability while offering valuable opportunities in return. Investors can benefit from enhanced security, property value growth, and improved international mobility.
Why use Global Citizen Solutions?
Global Citizen Solutions is a multidisciplinary firm offering bespoke residence and citizenship solutions in Europe and the Caribbean. In a world where the economy and politics are unpredictable, having a second citizenship opens up opportunities and creates flexibility for you and your family.
So, why work with Global Citizen Solutions to obtain Caribbean citizenship?
- Global approach by local experts: We are corporate members of the Investment Migration Council, with local expertise in all five Caribbean CBI programs.
- 100 percent approval rate: We have never had a case rejected and will offer you an initial, free-of-charge, due diligence assessment before signing any contract.
- Independent service and full transparency: We will present to you all the investment options available, and all expenses will be discussed in advance, with no hidden fees.
- An all-encompassing solution: A multidisciplinary team of immigration lawyers, investment specialists, and tax experts will take into consideration all your and your family's mobility, tax, and lifestyle needs.
- Confidential service and secure data management: All private data is stored within a GDPR-compliant database on a secure SSL-encrypted server.
