Bahamas: Investing

FDI in Figures

The Bahamas is the second-largest host economy among SIDS (small island developing States) in terms of FDI. According to UNCTAD’s World Investment Report 2025, FDI inflows stood at USD 1.45 billion in 2024, down by 5.6% year-on-year but 30.2% above the 2020-22 average. At the end of 2024, the total stock of FDI stood at USD 30.58 billion, equivalent to around 207.2% of the country’s GDP. The tourism sector continues to attract the majority of FDI in The Bahamas, with most inflows originating from the United States, Canada, and China. The country enforces a strict minimum investment threshold of USD 500,000 for foreign investors and has seen notable FDI from companies affiliated with or supported by the People's Republic of China in recent years, particularly in tourism-related developments. In 2022, The Bahamas positioned itself as a regional fintech hub, promoting its central bank-backed digital currency, the Sand Dollar, and offering a favourable regulatory framework under the Digital Assets and Registered Exchanges (DARE) Act. Although the collapse of FTX in December 2022 dealt a temporary setback to the sector, interest from fintech and blockchain firms remains strong, supported by ongoing regulatory updates and infrastructure improvements. The Bahamian government continues to prioritise economic diversification by encouraging investment not only in tourism, but also in renewable energy, manufacturing, digital assets, technology, agriculture, fisheries, and extractive industries.

The Bahamas offers several favorable aspects for investment, including political stability, a parliamentary democracy, an English-speaking workforce, a robust financial services sector, well-established rule of law, contract enforcement, an independent judiciary, and strong consumer buying power. However, challenges include limited transparency in government procurement, labor shortages in specific industries, elevated labor expenses, bureaucratic and inefficient investment approval procedures, protracted legal dispute resolution, internet connectivity issues on smaller islands, and high energy prices. The government maintains a non-discriminatory approach to investors, granting equal access to incentives such as land grants, tax concessions, and direct marketing and budgetary support, regardless of nationality. Foreign investments are subject to governmental approval, with the Bahamas Investment Authority (BIA) being responsible for approving all FDI in every sector of the Bahamian economy. The BIA functions as the investment facilitation agency and acts as a ‘one stop shop’ to assist investors in navigating a potentially cumbersome approvals process. Several sectors have been reserved for Bahamian Nationals only, including wholesale and retail (though foreign firms may wholesale products they manufacture locally), import/export agencies, real estate and property management, local media and advertising, most restaurants and nightclubs (with exceptions for specialty or tourism-linked venues), security services, distribution of building supplies, general construction (excluding specialised projects), beauty salons, commercial fishing, auto and appliance repair, public transport (including charters), and domestic gaming. The Bahamas ranks 28th among 180 economies on the Corruption Perception Index 2024 and 72nd out of 184 countries on the latest Index of Economic Freedom.

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Latest Update: October 2025