Caribbean Investment Summit 2024: A Real Estate Investment Advisor's Perspective of the Citizenship by Investment Programmes

The Caribbean Investment Summit 2024, themed "Resilience: Strengthening the Adaptability and Sustainability of Caribbean Investment Migration in the Face of Global Market Changes and Increasing Scrutiny from the EU, UK, and USA," offered a comprehensive exploration of the evolving landscape of Citizenship by Investment (CBI) programmes. As my first conference of the year, I was eager to attend, network with old acquaintances, and meet new people. Here are my key takeaways from the conference.

Key Takeaways

• Economic Contribution: Citizenship by Investment (CBI) programmes significantly bolster the economies of participating countries through direct foreign investment.

• Security Concerns: There are potential security risks associated with each country's passport, particularly regarding future access to other nations.

• Governmental Engagement: Effective collaboration between governments, CBI units, central banks, and associated agencies, especially with counterparts in the US, EU, and UK, is crucial. More work is needed to ensure robust CBI programmes.

• Transparency: Transparency is vital for the strength of CBI programmes. Grenada's Prime Minister, Hon. Dickon Mitchell, and the CEO of the Investment Migration Agency of Grenada, Thomas Anthony, emphasized the importance of transparency in the CBI programmes's operations and results.

• Investment in Hospitality: Nearly every major hotel investment in Grenada has been funded by the CBI programme, highlighting its impact on the hospitality sector.

• Due Diligence: While the current due diligence process is strong, there is a need for continuous improvement. Speakers and panelists such as Rufus Ferdinand, Kieron Sharp, Karen Kelly, Alejandra Jimenez, and Daniel Hartnett offered valuable insights and recommendations for enhancing due diligence. ( I just wished that during their presentations for more key decision makers to be present, I just hope there were separate engagements).

• Adaptation and Innovation: Many presenters noted the need for CBI programmes to adapt to changes and risks. Armand Arton suggested innovative ideas, including a debatable point about a  Global Citizen Tax, which warrants further exploration.

• Regulation and Leadership: The entire CBI industry, including marketing agents, needs better regulation. Governments should take the lead in driving CBI programmes.

• Expanding Client Base: The source of CBI clients is diversifying, now including the US, India, Nigeria, and other countries.

• Alternative Options: There is potential to revisit and expand programmes such as Residence by Investment.

Recommendations

• Frequent Collaboration: Participating countries and their governments should convene regularly to discuss and make collective decisions, rather than only during crises.

• Proactive Approach: A proactive approach is essential for the resilience and success of CBI programmes.

• Efficient Reactivity: In areas requiring reactive measures, efficiency is key.

• Consistency in Due Diligence: Addressing inconsistencies in the due diligence process will enhance the success of CBI programmes.

• Enhanced Marketing: CBI units and agencies should refine their marketing strategies to engage local citizens, ensuring they understand and can express their opinions and concerns about the programme.

• Highlighting Benefits: The benefits of CBI programmes, such as improved accommodation, employment creation, economic tolerance, skill and knowledge transfer, and social and infrastructural development, should be emphasized despite the inherent risks. The risks should also be key points for discussions and mitigation.

• Implementation of Standards: As noted by Charmaine Donovan, there is a need for the implementation of industry standards.

• Caribbean Integration: Emphasizing Caribbean integration and cooperation, as highlighted by Michael Martin's "One for all and all for one."

• Avoiding Competition: As Prime Minister Roosevelt Skerrit of Dominica suggested, raising standards of the programme and the need to eliminate competition amongst participating countries.

• Investor Connections: Encouraging investors to build better connections with the countries they become citizens of. I must commend St. Lucia's initiative Beyond the Passport led by McClaude Emmanuel.

• Transparency in Fund Utilization: Providing data on fund disbursement and its economic impact is crucial.

Final Thoughts

While the presentations were generally strong, some needed to be more direct to be able to leave a lasting impact on delegates and decision-makers. Notable presenters and panelists included Afi Ventour de Vega, Michael Martin, Nisha McIntyre, Richard Hallam (I saw the passion and the local knowledge with international experience as panelists), Richard Duncan, Bruno L'ecuyer and  Armand Arton added some key take away point, and Dr. Kristin Surak from the London School of Economics, who offered data-backed insights (we need more of this). Thought-provoking contributions from delegates like Nuri Katz (he made the most controversial point of the conference saying that the CBI programmes should get rid of the marketing agents), Shameilla Moses, and Marion Suite enriched the discussions with some key questions and points.

On the point of Grenada, The Grenada CBI unit, recently rebranded as the Investment Migration Agency Grenada, is on the right path to accommodate a wider scope.  They’ve conducted some community outreach initiatives to engage Grenadians. There are more transparency efforts in terms of the agency’s sponsorships and how some of the funds have been utilized. The CEO’s desk report is an excellent addition to encourage transparency. However, I do believe there is much more to be done to ensure the programme’s success.

In conclusion, conferences serve to educate, share knowledge, build relationships and impact change. I hope this summit propels the implementation of ideas and recommendations to protect citizens' interests, uphold participating countries' reputations, and ensure the continuity and success of CBI programmes. It's time to be resilient, proactive, efficient, transparent, and to showcase these programmes in a positive light. This programme and similar programmes are essential especially for developing countries. Everyone has a role to play in achieving this goal for the benefit of participating countries and their citizens.

Livonne Charles

Lead Consultant

Intel Advisory Services