R 051753Z FEB 09
FM AMEMBASSY NASSAU
TO SECSTATE WASHDC 6100
INFO DEPT OF COMMERCE WASHDC
DEPT OF TREASURY WASHINGTON DC
CIMS NTDB WASHDC
EC CARICOM COLLECTIVE

UNCLAS NASSAU 000083 
 
 
STATE FOR OFFICE OF INVESTMENT AFFAIRS - EB/IFD/OIA, WHA/CAR, AND 
WHA/EPSC 
 
SANTO DOMINGO FOR USFCS 
 
E.O. 12958:  N/A 
TAGS: EINV EFIN ETRD ELAB KTDB OPIC USTR BF
SUBJECT:  THE BAHAMAS 2009 INVESTMENT CLIMATE STATEMENT 
 
REF:  08 STATE 123907 
 
------------------ 
INVESTMENT CLIMATE 
------------------ 
 
¶1.  Openness to Foreign Investment:  The Bahamian Government 
generally encourages and offers incentives for foreign investment in 
all sectors of the economy except those the Government reserves 
exclusively to Bahamian citizens.  Reserved businesses include: 
wholesale and retail operations; commission agencies engaged in the 
import/export trade; real estate and domestic property management 
agencies; domestic newspaper and magazine publication; domestic 
advertising and public relations firms; nightclubs and restaurants 
(except specialty, gourmet and ethnic restaurants and restaurants 
operating in a hotel, resort complex or tourist attraction); 
security services; domestic distribution and building supplies; 
construction companies (except for special structures for which 
international expertise is required); personal cosmetics/beauty 
establishments; shallow water scalefish; crustacean, mollusk and 
sponge fishing operations; auto and appliance service operations; 
and public transportation. 
 
¶2.  Officially, the Government has targeted the following categories 
of businesses for foreign investors:  tourist resorts; upscale 
condominiums; time share and second home development; international 
business centers; marinas; information and data processing services; 
assembly industries; high-tech service; ship registration, repair 
and other services; light manufacturing for export; agro-industries; 
food processing; mariculture; banking and other financial services; 
captive insurance companies; aircraft services; pharmaceutical 
manufacture; and offshore medical centers. 
 
¶3.  Benefits of investing in The Bahamas include:  a stable, 
democratic government; relief from corporate and personal income 
taxes (although foreign property owners are required to pay a real 
property tax based on the value of their property); timely 
repatriation of profits of approved investments; proximity to the 
United States; extensive air links through nearby Miami, Ft. 
Lauderdale and Orlando; well-developed telecommunications links; a 
good pool of skilled professionals; excellent tourism and conference 
facilities; and current and potential future tariff concessions 
under the Caribbean Basin Economic Recovery Act, Canada's CARIBCAN 
Program, and the European Union's Economic Partnership Agreement. 
The Bahamian dollar is fixed on par with the United States dollar 
and the Government is firmly committed to maintaining this exchange 
rate. 
 
¶4.  In practice, the vast majority of successful foreign investments 
in The Bahamas have been in the traditional areas of tourism and 
banking.  The decision-making process within the Government of The 
Bahamas is highly centralized and most foreign investments are 
subject to review and approval at the cabinet level.  The Government 
is particularly interested in investments that will generate local 
employment, particularly in white-collar or skilled jobs. 
Large-scale projects in areas such as agriculture may be difficult 
to staff since low-wage and low-skill jobs do not appeal to most 
Bahamians, and because the Government is reluctant to permit 
importation of foreign laborers to staff these jobs, even on a 
temporary-permit basis.  When new foreign ventures are perceived as 
competitors to existing Bahamian businesses or too dependent on 
foreign labor, the Government has responded to local concerns and 
withdrawn or refused the license of the foreign business. 
 
¶5.  In 1993, the Government established The Bahamas Investment 
Authority (BIA).  It is located in the office of the Prime Minister, 
Ministry of Finance.  The BIA is intended to provide a 
"one-stop-shop" to assist foreign investors with initial 
governmental approval of their investment applications and to cut 
through red tape for approved investments.  BIA is the Government's 
central point of contact for foreign investment questions. 
Potential investors may contact the BIA at: 
 
Bahamas Investment Authority 
P.O. Box N-7770 
Nassau, Bahamas 
Tel: 1-242-356-5956, Fax: 1-242-327-5907 
www.opm.gob.bs (note that the website is currently unavailable as 
the BIA revamps their website) 
 
¶6.  While The Bahamas has not yet enacted environmental legislation 
as extensive as that in the United States, the BIA still requires a 
full accounting of the environmental impact of any industrial or 
agricultural schemes. 
 
-------------------------------- 
Conversion and Transfer Policies 
-------------------------------- 
¶7.  Persons and corporations resident in The Bahamas are subject to 
exchange controls administered by the Central Bank.  Certain 
commercial banks are authorized to deal in foreign currency and have 
authority delegated by the Central Bank to approve exchanges for 
certain current account transactions.  Non-resident investors 
wishing to initiate operations in The Bahamas must register their 
operations with the Central Bank.  If their projects are financed 
substantially by foreign currency transferred into The Bahamas, they 
will be given "approved status," meaning that profits and capital 
gains can be converted into foreign currency and repatriated with 
minimal formalities.  Capital investment into The Bahamas remains 
subject to exchange controls, but as a practical matter these 
controls have not been known to inhibit repatriation of approved 
investment capital.  Many Bahamians argue that exchange controls 
should be eliminated, but the Central Bank and the Government are 
not prepared to do so at this time, citing the need to retain 
sufficient foreign reserves to mount a strong defense of the 
currency's one-to-one parity with the U.S. dollar. 
 
------------------------------ 
Expropriation and Compensation 
------------------------------ 
 
¶8.  Article 27 of the Bahamian Constitution prohibits deprivation of 
property except upon the making of prompt and adequate compensation 
in the circumstances.  There is no evidence that the Government has 
ever expropriated a business, and both major political parties have 
stated that nationalization will not be an instrument of Government 
policy. 
 
------------------ 
Dispute Settlement 
------------------ 
 
¶9.  There is no history of major investment disputes in The Bahamas, 
although smaller contractual and other disputes between Bahamians 
and foreign investors or exporters are common.  The Bahamian legal 
system is based on English common law.  The judiciary, appointed by 
the Governor General, is independent and there is no evidence of 
Governmental interference with the system.  The highest court of 
appeal is the Privy Council in London. 
 
¶10.  Tentative consideration is being given to the creation of a 
Caribbean Final Court of Appeals to replace the Privy Council. 
Despite recent efforts to reduce backlogs of criminal and civil 
cases, resolution of court cases can be slow, sometimes taking 
years.  The Embassy has received some reports of encounters with 
biased judges and malfeasance by attorneys.  The Embassy has also 
received reports of local defendants evading payment of Bahamian 
civil judgments or deliberately dragging out court disputes, 
especially in cases involving non-resident plaintiffs. 
 
¶11.  Judgments of British courts, and of selected commonwealth 
countries, can be registered and enforced.  Other countries' 
judgments, including those of the United States, must be sued upon 
in court as debt, subject to all jurisdictional requirements. 
Judgments of Bahamian courts are payable in Bahamian dollars unless 
otherwise specified by agreement of the parties. 
 
¶12.  Personal bankruptcy laws are antiquated and rarely used. 
Companies can be and are frequently liquidated according to law. 
Creditors of bankrupt debtors and liquidated companies participate 
in the distribution of the bankrupt debtor's or liquidated company's 
estate according to statute.  The law relating to sales of goods and 
some other commercial subjects are codified in The Bahamas' 
statutes. 
 
¶13.  The Bahamas has been a member of the International Center for 
the Settlement of Investment Disputes (ICSID) since 1995.  It is 
also a member of the Multilateral Investment Guarantee Agency, which 
insures investors against currency transfer restrictions, 
expropriation, war and civil disturbances, and breach of contract by 
member countries. 
 
----------------------------------- 
Performance Requirements/Incentives 
----------------------------------- 
 
¶14.  The Bahamas lacks any form of taxation on income, sales, 
estates or inheritances.  The only direct tax is a real property 
tax.  Casinos are specially taxed, and there is a $20 departure tax 
levied at the airports and harbors, which will be increased to $25 
once the first phase of the U.S. pre-clearance facility is complete 
at the end 2010.  The principal incentives for foreign investments 
are concessions on import duties and property tax abatement. 
Tariffs in general are high and do not generally discriminate by 
country of origin, although The Bahamas recently signed an Economic 
Partnership Agreement with the European Union that aims at the 
eventual elimination of duty on EU and CARIFORUM imports over the 
next 25 years.  Incentives are offered under the following 
legislation: 
 
-- Industries Encouragement Act:  Under this law, the Government may 
exempt from duties the machinery, tools, equipment, and raw 
materials imported to construct new factories.  A list of 
duty-exempt items is negotiated separately with each new venture. 
 
-- Hotels Encouragement Act:  Under this law, new hotels and resorts 
can be exempted from real property taxes for ten years from the date 
the new facility opens, and for significant tax reduction for up to 
ten additional years.  An amendment to the Act currently before 
Parliament would allow the Government to grant tax relief for an 
additional ten years, raising the maximum length of tax abatement to 
thirty years.  In addition, the Act allows the duty-free importation 
of materials used for the construction of new facilities or the 
substantial renovation of existing facilities acquired by new owners 
for a set period of time.  The list of duty-free items for each 
project and the duration of some duty-free windows are negotiated 
separately for each venture. 
 
-- Agricultural Manufacturers Act:  This law allows any materials 
necessary for the construction, alteration, or repair of an 
agricultural factory, as well as any machinery or supplies used in 
establishing such a factory, to be imported duty free.  An 
agricultural factory refers to any factory established for the 
purpose of manufacturing or preparing agricultural or horticultural 
produce of The Bahamas for sale or export. 
 
-- Spirits and Beer Manufacturers Act:  This law provides for the 
duty-free importation of materials used in the construction, 
alteration or repair of approved liquor distilleries or beer 
breweries and the duty-free importation of raw materials and 
equipment for liquor or beer production. 
 
-- Recent amendments to the Tariff Act provide duty exemptions for 
construction and development on certain outer "Family Islands." 
 
¶15.  Prospective investors should discuss the terms and conditions 
under which these benefits will be made available in any specific 
case with The Bahamas Investment Authority.  Although work permits 
for key foreign employees are readily granted in connection with the 
investment approval process, Government policy favors employment of 
Bahamians.  Fees for work permits can run up to several thousand 
dollars each, and permits for less senior employees can be difficult 
to obtain. 
 
-------------------------------------------- 
Right to Private Ownership and Establishment 
-------------------------------------------- 
 
¶16.  Subject to the reservation of certain areas of economic 
activity to Bahamian citizens only, and the necessary approvals and 
licenses, private entities may engage in nearly all forms of 
remunerative activity.  They may freely establish acquire, and 
dispose of interests in business eterprises.  One significant 
exception is the Govrnment's monopoly onall forms of 
telecommunicatins (except Internet services, wireless services, 
paging, and radio) exercised by The Bahamas Telecomunications 
Company (BTC).  However, with the pln to privatize this corporation 
the GCOB is opening the market to competition within two years of 
the sale.  The GCOB is actively seeking a buyer for BTC and is 
offering 51 percent of its stake in BTC.  Government corporations 
such as the Hotel Corporation of The Bahamas and ZNS Radio compete 
on a basis of rough equality with private corporations in similar 
businesses. 
 
----------------------------- 
Protection of Property Rights 
----------------------------- 
 
¶17.  Subject to long legal delays, secured interest in property, 
both chattel and real, is recognized and enforced.  Mortgages in 
real property and security interests in personal property can be 
recorded with the Registrar General. 
 
¶18.  The Bahamas is a member of the World Intellectual Property 
Organization (WIPO), but not of the World Trade Organization (WTO). 
There is little industrial production that might generate possible 
infringements of patent rights.  However, existing copyright laws 
are widely ignored, resulting in widespread piracy of video and 
music recordings and broadcasts, most of which remain in The 
Bahamas.  Parliament passed a new copyright law on July 4, 2000, 
which is intended to provide better protection to international 
holders of copyrights but has yet to be strictly enforced.  The 
Bahamas was removed from the USTR 301 watchlist in 2007 but is up 
for review and possible inclusion on the list in 2009. 
 
------------------------------------- 
Transparency of the Regulatory System 
------------------------------------- 
 
¶19.  Official Government policy commits The Bahamas to building an 
economic environment where the Government assumes its proper role as 
regulator and facilitator of economic development, and where ideals 
of transparency, fair play and equality of treatment are protected. 
Still, the discretionary issuance of business licenses can result in 
a lack of transparency in decisions to authorize or to renew the 
authority of a business.  Large foreign investors may be held to 
higher labor, health and safety standards than are local 
entrepreneurs.  Obtaining required permits, especially immigration 
permits, can take an inordinate length of time.  The Bahamas 
Investment Authority exists to assist foreign investors in dealing 
with the permitting process. 
 
--------------------------------------------- ----- 
Efficient Capital Markets and Portfolio Investment 
--------------------------------------------- ----- 
 
¶20.  In 2000 the Bahamas International Securities Exchange, (BISX) 
began operations, and presently involves the listing and trading of 
domestic equities and also provides a mutual fund listing facility. 
BISX has experienced several problems during its short corporate 
life, with a shortage of funds and low trading volumes since its 
inception.  The Exchange presently consists of 19 listed public 
companies and the volume of securities traded on BISX in the first 
quarter of 2008 declined to 4.8 million, from 5.25 million shares in 
the previous period, and the value decreased by 1.6 percent to $28.3 
million.  In the same period the BISX All Share Price Index 
appreciated by 23.2 percent to 2,066.75 points from last period's 
1,676.19.  Similarly, valuations represented in the broader Fidelity 
Capital Market Index (FINDEX), which captures both BISX securities 
and over-the-counter companies, increased by 26.4 percent to 938.3. 
Total market capitalization on BISX rose by 24.3 percent to $3.9 
billion. 
 
¶21.  The Exchange has experienced continued overall growth over 
2008, though FINDEX growth slowed moderately.  A number of important 
initiatives are being carried out to accelerate the development of 
the local capital markets.  One of these is the inclusion of 
Government debt securities among those instruments issued and openly 
traded on BISX.  This development has come about as the result of a 
number of Governmental initiatives designed to stimulate capital 
markets in The Bahamas and support BISX.  As an initial step the 
Government of The Bahamas published a 'Capital Market Development 
Policy Statement' in August 2005 which commits itself to support the 
growth of capital markets in The Bahamas.  This commitment was later 
illustrated by the Government's acquisition of a 43 percent interest 
in BISX in February 2006, making them the Exchange's single largest 
shareholder out of 46 shareholders. 
 
¶22.  Finally, with the further liberalization of Exchange Controls 
initiated under the former administration, two new Bahamas Receipt 
(BDR) products were offered to the public in 2007. 
 
¶23.  Local bank credit, including loans from The Bahamas Development 
Bank, is available to resident enterprises for capital investment in 
The Bahamas in proportion to their local ownership. 
 
¶24.  Despite the current global economic downturn, the effect on the 
banking industry has been mild, reflecting a relatively sound 
system.  The prime rate and the Central Bank Discount rate at the 
end of the second quarter of 2008 have been maintained at 5.50 
percent and 5.25 percent, respectively.  The majority of outstanding 
commercial bank credit is personal loans (mortgages) for consumer 
purchases.  At the end of June 2007, the Central Bank reported the 
total net external assets increased by $3.7 billion to $351.2 
billion.  Domestic banks also strengthened 8.9 percent to $8.4 
billion.  The gross economic contribution of the banking sector for 
2007 to the Bahamian economy was $478.3 million.  Since the passage 
of the new financial legislation, the total number of banks and 
trust companies declined from 415 in 1999 to 245 in 2007 - most of 
these banks were "brass plate" banks (organizations that were 
registered in The Bahamas but did not have a physical presence in 
this jurisdiction).  In addition, the number of International 
Business Companies (IBCs) has rebounded after falling-off to around 
80,000 in 2003, after implementation of new bank regulations in 
2000, to 155,765 as at December 17, 2008.  Further, the enactment of 
the new legislation on Private Trust Companies has ushered in the 
approval of two Financial and Corporate Service Providers (FCSP's) 
to act as Registered Representatives of Private Trust Companies and 
the exemption of seven (7) Private Trust Companies from having to 
obtain a trust license. 
 
¶25.  Projects in The Bahamas are also eligible, in some instances, 
for financing from the U.S. Export-Import Bank, the Overseas Private 
Investment Corporation (OPIC) or from multilateral institutions such 
as the Inter-American Development Bank (IDB).  Major Bahamian 
banking institutions which can provide financing for certain 
projects in The Bahamas include: 
 
Bahamas Development Bank 
P.O. Box N-3034 
Nassau, Bahamas 
Tel:  (242) 352-5780 
 
Bank of The Bahamas, Ltd. 
P.O. Box N-7118 
Nassau Bahamas 
Tel:  (242) 326-2560 
 
First Caribbean International Bank (merger between Barclays Bank and 
the Canadian Imperial Bank of Commerce (CIBC) 
Charlotte House 
P.O. Box N-3221 
Nassau, Bahamas 
Tel: (242) 325-7384 
 
British-American Bank 
P.O. Box N-7502 
Nassau, Bahamas 
Tel: (242) 327-5170 
 
Commonwealth Bank 
P.O. Box SS-6263 
Nassau, Bahamas 
Tel.: (242) 328-1854 
 
Royal Bank of Canada 
P.O. Box N-7537 
Nassau, Bahamas 
Tel: (242) 322-8700 
 
Bank of Nova Scotia 
P.O. Box N-7518 
Nassau, Bahamas 
Tel: (242) 356-1400 
 
Finance Corp. Of The Bahamas 
P.O. Box N-3038 
Nassau, Bahamas 
Tel: (242) 322-4822 
 
 
------------------ 
Political Violence 
------------------ 
 
¶26.  The Bahamas has no history of political violence, although 
labor unrest has become violent on occasion and labor strikes are 
becoming more common.  In 1998 a semi-violent confrontation between 
workers and police occurred due to the proposed privatization of the 
phone company.  In August 2008 telecom workers took part in a major 
strike on both New Providence and Grand Bahama, once again in 
protest of privatization.  In 2008 union workers at Morton Salt on 
the island of Great Inagua went on strike for three weeks due to the 
termination of an employee who was also a senior union official. 
Property on Morton Salt facilities was damaged.  Despite these 
isolated incidents, the Government publicly and strongly supports a 
modern open approach to foreign investment, although many Bahamians, 
including some prominent politicians, remain suspicious of 
expatriate investors and employees.  Foreign investors are sometimes 
the targets of criticism in the news media and Parliament. 
 
---------- 
Corruption 
---------- 
 
¶27.  Giving a bribe to -- or accepting bribes from -- a Government 
official is a criminal act in The Bahamas under the Prevention of 
Bribery Act.  Penalty under this act is a fine up to $10,000, or a 
maximum prison tem of four (4) years or both.  The FNM Government 
has emphasized anti-corruption measures.  Since 192, credible 
reports of heavy corruption have becme rare, although allegations 
of improper conduc on the part of Government officials surface 
reguarly, and have plagued the political process for dcades. 
 
------------------------------ 
 
Bilateral Investment Agreements 
------------------------------- 
 
¶28.  There is no Bilateral Investment Treaty between The Bahamas and 
the United States.  The Bahamas was designated a beneficiary of the 
Caribbean Basin Initiative (CBI) in 1985.  As a result, with certain 
restrictions, products manufactured in The Bahamas qualify for 
duty-free entry into the United States.  High wage rates, combined 
with the small size of the country's manufacturing and agricultural 
sectors, have hindered The Bahamas' ability to exploit these 
benefits.  On January 25, 2002 a previous FNM Government signed a 
Tax Information Exchange Agreement (TIEA).  A key side benefit of 
this agreement for The Bahamas is that, effective 2005 it permitted 
U.S. tax deductions for expenses of business conventions held in The 
Bahamas. 
 
-------------------------------------------- 
OPIC and Other Investment Insurance Programs 
-------------------------------------------- 
 
¶29.  Since 1992, the U.S. Overseas Private Investment Corporation 
(OPIC) has approved two investment projects in The Bahamas.  It 
guaranteed up to $10.8 million in loans to Uniroyal Chemical 
Company, Ltd. to assist in the purchase and refurbishment of a plant 
in Freeport.  The Uniroyal plant has since closed.  In addition, 
OPIC committed itself to a loan of up to $1.6 million to Landquest, 
Ltd., for the development of a cruise ship facility on the island of 
Eleuthera.  The facility is currently operational. 
 
¶30.  The Bahamas is also associated with the Multilateral Investment 
Guarantee Agency of the World Bank, which, like OPIC, insures 
investors against currency transfer restrictions, expropriation, 
war, civil disturbances and breach of contract by member countries. 
 
----- 
Labor 
----- 
¶31.  In 2008 the labor force grew 19.8 percent compared to 2007, 
consisting of 191,595 workers and owing mainly to the addition of 
high school graduates.  The Government and the tourism industry are 
the country's largest employers.  According to the Department of 
Statistics, the unemployment rate appreciated to 8.7 percent from 
8.0 percent in 2007.  This contrasted the moderate increase of 90 
basis points just a year earlier and it is expected to reach the 
lower double digits by the end of 2009.  There is a considerable 
amount of under-employment and discouraged workers as a result of 
the global economic downturn.  The GCOB plans to create an 
unemployment program and in an attempt to alleviate the current 
increase in unemployment. 
 
¶32.  Well-qualified accountants and secretaries, and others with 
skills appropriate to the financial services industry, command a 
premium wage.  While low skilled labor, mostly found in the hotel 
and restaurant industries, basic wage hovers around the minimum 
rate.  Unemployment is slightly higher for adults between the age of 
25 and 34.  As expected, Nassau - the capital city - has the highest 
employment.  However, Freeport, the second city, has experienced 
escalating unemployment due to two devastating storms and the 
closure of a major casino and resort.  At a meet the press 
conference in November, Prime Minister Ingraham stated that 
presently there is no good news for Grand Bahama.  The government 
approval of several tourism anchor projects on major family islands 
was developed to attract workers back to the family islands. 
Conversely, most of these projects have stalled in light of the 
current economic crisis, so these benefits will not be realized in 
the near future. 
 
¶33.  There is notable concern about the level of employee and 
white-collar crime in The Bahamas. 
 
¶34.  In the 2000/2001 Government Budget, the Government increased 
its minimum wage from $4.12 per hour to $4.45 per hour for public 
sector employees.  Minimum wage for private sector workers is $4 per 
hour.  The Fair Labor Standards Act requires at least one 24-hour 
rest period per week, paid annual vacations, and employer 
contributions to National Insurance (social security).  The Act also 
requires overtime pay (time and a half) for hours in excess of 48 or 
on public holidays.  A 1988 law provides for maternity leave and the 
right to re-employment after childbirth.  A new Minimum Labor 
Standards Act including the Employment Act, Health and Safety at 
Work Act, Industrial Tribunal and Trade Disputes Act, and the Trade 
Union and Labor Relations Act were passed in 2001 and early 2002. 
 
¶35.  The Bahamian Constitution specifically grants labor unions the 
rights of free assembly and association.  These rights are exercised 
extensively, particularly in the hotel industry - where 80 percent 
of the employees are unionized - and in the state-owned industries. 
Unions operate without restrictions or Government controls.  The 
right to strike is governed under the Industrial Relations Act, 
which requires a simple majority of union members to vote in favor 
of a strike before it can commence.  The Ministry of Labor oversees 
strike votes.  Although prolonged strikes are still rare, work 
slow-downs and rowdy protests occur occasionally.  Labor unions and 
others involved in disputes with foreign-owned enterprises have not 
been above using the fact of foreign ownership as a lever to gain 
popular support for their demands. 
 
¶36.  The Immigration Act requires foreigners to obtain work permits 
before they can be employed in The Bahamas.  The Government will 
permit foreign employees to work in a technical, supervisory or 
managerial capacity to initiate and operate industries, provided no 
similarly qualified Bahamians are available for the job.  Foreign 
business owners are expected to train as many of their Bahamian 
employees as possible to eventually fill technical and managerial 
positions.  Work permit fees have increased from a range of $250 to 
$7,500 per year to $350 to $10,000 per year. 
 
------------------------------ 
Foreign Trade Zones/Free Ports 
------------------------------ 
 
¶37.  The 1955 Hawksbill Creek Agreement established Freeport, Grand 
Bahama, the country's second-largest town, as a free trade zone. 
Firms in Freeport are granted the right to import equipment and 
materials duty-free, and enjoy other tax advantages.  In 1993, the 
Government extended the Hawksbill Creek property tax exemptions 
through 2015 and duty exemptions to 2054, but withdrew real property 
tax exemptions for foreign individuals and corporations.  The Hong 
Kong-based conglomerate Hutchison Whampoa has invested millions of 
dollars in a new deep-water container port, airport, cruise ship 
dock, industrial park, and hotel properties in Freeport, promising a 
revitalization of Freeport as The Bahamas' leading industrial city. 
The Grand Bahama Port Authority (GBPA) has been embroiled in an 
ownership dispute since the summer of 2006.  As of March 2008 the 
issue has not been resolved, but GBPA leadership has sought to 
assure investors that their investments are safe. 
 
------------------------------------ 
Foreign Direct Investment Statistics and Major Foreign Investments 
----------- 
¶38. There is also a direct link between the level of imports flowing 
into The Bahamas and foreign direct investments.  At the end of the 
second quarter 2008, net private direct investment was $212.0 
million, and net private direct equity investments was $108.8 
million.  Net Foreign Loan Financing on foreign investments was 
$149.3 million.  Net foreign real estate purchases for this period 
totaled $103.1 million. While Government statistics do not list 
overall foreign investment by nationality, post determined that the 
largest investors are American, Canadian, Hong-Kong Chinese, and 
South African in origin. 
 
Major foreign investments in The Bahamas include: 
  ACCOUNTING: 
  -- Grant Thornton Chartered Accountants 
  -- Horwath International 
-- KPMG 
-- Ernst & Young 
-- PriceWaterHouseCoopers 
 
TOURISM DEVELOPMENTS: 
 
-- Atlantis Resort, a hotel, resort, and casino complex on Paradise 
Island near Nassau owned by Sol Kerzner of the South African firm 
Sun Hotels International 
 
-- Baha Mar owned by Armenian, Sarkis Izmirlian recently purchased 
the Radisson Resort (formerly government owned), Wyndham Nassau 
Resort & Crystal Palace Casino formerly the Nassau Marriott Crystal 
Palace Resort, casino, and convention center, and the Nassau Beach 
Hotel 
 
 -- Superclub Breezes Resort, owned by a Jamaican company 
 
-- Sandals Royal Bahamian Resort, owned by a Jamaican company 
 
-- The British Colonial (Hilton) Hotel a subsidiary of Blackstone 
and managed by Hilton Corp., both U.S. companies 
 
-- Comfort Suites on Paradise Island owned by a U.S. company 
 
-- Island Outpost Resort at Compass Point, Nassau, Pink Sands 
Resort, Harbour Island, and Kamalamae Resort, Andros owned by a 
Jamaican company 
 
-- Freeport/Lucaya Marina Village developed recently by European 
investors 
 
-- Gorda Cay, renamed Castaway Cay, purchased and developed by 
Disney Corp. for its cruise ship operations 
 
-- Half Moon Cay, owned by U.S. company Holland America Cruise 
Lines 
 
-- Princess Cay, a cruise ship landing facility near Eleuthera 
Island, owned by Landquest, a U.S. company 
 
-- Four Seasons Resort Development on Exuma, owned by a Canadian 
Company 
 
-- Our Lucaya Resort, a subsidiary of Hutchison Whampoa Group and 
Centex Rooney 
 
-- RIU Resort, Paradise Island, owned by a Spanish Company 
 
-- Winding Bay Resort, Abaco, owned by an American company 
 
-- Baker's Bay located on Guana Cay, Abaco is owned by the U.S. 
Discovery Land Company of San Francisco 
 
-- Bimini Bay Resort, owned by Florida-based developer Geraldo Capo 
 
-- The Ginn development project located on the west end of Grand 
Bahama, owned by the Florida-based Ginn Development Company 
 
-- The Bahamas Film Studio/Gold Rock Creek Enterprises Ltd., located 
at East Grand Bahama, owned by Canadian Paul Quigley 
 
-- Ritz Carlton Rose Island Resort owned by Karim Alibhai of the 
Florida-based Gencom Group 
 
-- Albany Golf and Beach Resort owned by an investment group 
comprising Bahamian Joe Lewis, American Tiger Woods and South 
African Ernie Els 
 
-- The I Group Mayaguana development owned by developers from Boston 
 
 
CONSTRUCTION: 
 
-- Baker Construction 
 
BANKING & FINANCE: 
 
-- Citibank, N.A. 
 
-- JP Morgan Trust Co. (Bahamas) Ltd. 
 
-- BankBoston Trust Company Ltd. 
 
-- Templeton Global Advisors Ltd. 
 
OTHER: 
 
-- Morton Salt (Bahamas) Ltd. 
 
-- American - Marubeni Caribbean Power Holdings, Inc. (Grand Bahama 
Power Company) 
 
-- AES American Oil Company, which owns Ocean Cay, a facility to 
produce liquefied natural gas (upon Bahamian government approval) 
 
-- Freeport Ship Care Facility, owned by the Lloyd Werft Ship Repair 
Company of Germany 
 
-- The Container Port facility, airport and three beachfront hotels 
in Freeport were acquired in 1997 by Hong Kong-based Hutchison 
Whampoa 
 
-- The Caribbean Marine Research Center, operated by The Perry 
Institute for Marine Science, an American firm 
 
-- Cable Bahamas, Ltd., established by a Canadian group 
 
-- Commonwealth Brewery Ltd (Heineken), a Dutch-Bahamian company 
 
-- Polymers International, Ltd., a subsidiary of Dart Container, 
which produces styrofoam pellets at a plant in Freeport 
 
 HOUSING DEVELOPMENTS: 
 
-- Sandyport Development Co. Ltd., a housing subdivision owned by a 
 
British company 
 
-- Roberts Isle, a housing subdivision, owned by a U.S. company 
 
-- Treasure Cove, a housing subdivision, owned by a U.S. company. 
 
-- Schooner Bay, an environmentally friendly community, owned by a 
U.S. company. 
 
-- Old Fort Bay, a housing subdivision, owned by a U.S. company. 
 
 
ZUNIGA-BROWN