How Dominica Benefits from CBI Funding

It’s no secret that the Investment Migration industry helps Governments generate significant revenue for their countries. As a whole, it is estimated that the RCBI industry generates over $21 billion a year worldwide. To put this into perspective, this is a similar amount to the global dental industry, which generates $29 billion a year. One might say that a second residency or passport is fast becoming as essential as routine dental treatment!

Anyone familiar with the benefits of investing in a second residency or citizenship will appreciate the many advantages this will bring and how it can enhance one’s life. On the flip side, it is also interesting to consider the positive effects your investment is having within the country you are applying for.

We took a closer look at Dominica to see how the nation has utilized its CBI revenue over recent years. 

DOMINICA – CITIZENSHIP BY DONATION TO THE ECONOMIC DIVERSIFICATION FUND

The lowest cost route to gain Dominican Citizenship is by donating to the Government’s Economic Diversification Fund. For a single applicant, the donation required is $100,000 plus fees, or $200,000 plus fees, for a family of four. The Government use this revenue to fund various public initiatives including local housing, education, healthcare and more. The Government is currently building a new state of the art hospital as well as a new school. In recent years they have also completed the construction of several thousand new homes and community and health centres. Following the devastating effects of Hurricane Maria in 2017, which destroyed over 23,000 homes, Prime Minister Roosevelt Skerrit launched the Housing Revolution programme pledging $26M of CBI funds to build thousands of hurricane-resilient homes so that everyone in the country feels safe and secure in their own homes during adverse weathers. Without CBI funding, the country may have struggled to rebuild their communities so quickly and future proof their buildings. No CBI funding may have left the country to rely purely on overseas aid and loans.

Another huge benefit of the above-mentioned projects is that thousands of jobs will also have been created for local construction workers, teachers, doctors, nurses and clerical staff etc; boosting employment rates and creating new opportunities for Dominican Citizens residing on the Island.

DOMINICA – CITIZENSHIP BY REAL ESTATE INVESTMENT

Investors can also choose to invest in a Government approved Real Estate project from $200,000 upwards. The eligible real estate developments are all hotels and these projects alone benefit the Island in several ways. To start, the construction of the projects create hundreds of local jobs. Once the projects are completed and operational they continue to provide further jobs in the tourism sector and help boost the countries overall tourism income by attracting additional foreign visitors to the Island. Dominica’s hoteliers also work with their local communities to provide visitors with ethically sourced, fresh produce which also helps shrink their carbon footprint, something Dominica is very passionate about.

The CBI programme was launched in 1993 and coincidentally revenue from the tourism market has more than doubled during this time, generating the Island $111 million a year in 2019. With the number of available hotels and resorts gradually expanding over time, thanks to CBI, the tourism market will no doubt continue to grow and have a positive effect on the countries economy.

The benefits of CBI funding on small nations is similar across the board amongst the other Caribbean countries offering such programmes. In 2020, Saint Lucia launched their Covid-19 Relief Bond in a response to safeguard their economy from the effects of the global pandemic; and Saint Kitts and Nevis launched a Hurricane Relief fund in 2017 to raise much-needed revenue to help with the Island’s post-hurricane recovery. The bottom line is that CBI revenue has provided many of these countries with a much-needed lifeline during difficult times, allowing them to not only rebuild their communities but to protect the future of their economies and thrive, rather than just survive.