Investors facing numerous challenges, says US State Dept.

The Bahamas remains a top nation for US foreign direct investment (FDI), however, there are challenges for investors when attempting to conduct business, including approval delays and a lack of transparent investment procedures, according to the US Department of State’s recently released 2025 Bahamas Investment Climate Statement. The statement further explains that The Bahamas lags behind other countries when it comes to starting a business, registering property, acquiring construction permits, accessing credit, and resolving property disputes. “Significant delays in the approvals process have occurred, including cases where the government failed to respond to investment applications,” the statement says. It adds: “The National Economic Council (NEC) must grant special approval for foreign investment projects valued at $10 million or more, those with national security implications, or those that require environmental and economic impact assessments. The NEC is comprised of government ministers, including the prime minister in his dual role as the minister of finance; and the deputy prime minister as the minister responsible for investments. The approval process generally requires review by multiple government agencies and a BIA [Bahamas Investment Authority] recommendation prior to NEC consideration. Bureaucratic impediments are not limited to the NEC approvals process.” The US Department of State said while the government has promoted plans to launch Bahamas Invest as an “independent agency intended to fast-track FDI, streamline approvals, and increase transparency”, there has been “no visible progress on this initiative, and it remains unclear whether it remains a government priority”. “Currently, the BIA continues its oversight of all FDI-related activities,” the statement said. It explains that much of the FDI in The Bahamas comes in the form of tourism-focused development. “Investors meeting specific criteria can access investment incentives, including customs duty exemptions on construction material for projects such as timeshares and hotels; stamp duty [exemptions], and excise and property tax [exemptions],” the statement says. It adds that despite those incentives, high labor costs, red tape in the investment approval process, and inconsistent public contract tendering remain challenges. “To improve the investment environment, the government has introduced reforms, such as the Public Procurement Act and eProcurement platform,” the statement said. “However, a lack of transparent investment procedures and legislation continues to create challenges for investors.”