CARIFORUM and UK EPA Study

commercial establishment is likely to be impacted by existing limitations. For example, existing exchange controls in The Bahamas and Barbados will impact the investment decisions of UK investors vis a vis, those two countries, while limitations on land ownership and acquisition, mostly within the smaller territories, may negatively impact investor decisions regarding the location of certain major sectors/industries. There are also a variety of restrictions on foreign participation in certain sectors, particularly in the OECS sub-region. This relates to carve outs for nationals in relation to various small business service opportunities, especially in the Hotel and Resort Development sector. These, however, are not likely to have any major impact on UK investors, who are not expected to contest these much smaller market segments. There are also a number of outright prohibitions on foreign investment in the DR that seek to target specific activities that may have a deleterious effect on the environment and public health or are sensitive in relation to national defence and security, though these restricted services sectors are not generally among the major commercial sectors that have been targeted by UK investors overseas. Finally, there are but a few limitations on legal form or instances in which foreign subsidiaries established in the region may be treated less favourably than local entities, and thus may not impact inward FDI from the UK into the region in any major way. Therefore, for CARIFORUM countries seeking to attract UK investment, the analysis suggests that, subject to the prevailing market conditions for commercial establishment throughout the region, including the existence of an enabling regulatory environment and vibrant consumer demand for the abovementioned services, CARIFORUM countries would likely be attractive investment destinations for the establishment of UK foreign affiliates for the provision of Distribution, Maintenance and Repair, Construction, Other Business Services and Financial services. Therefore, these sectors should thus be targeted for investment promotion activities.

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