2 presentation for cifit_2010

Introduction Key Features Key Features Economic , political and social environment Technological environment Technological environment Legal and regulatory framework Cost competiveness Cost competiveness Trade and investment opportunities Investment Incentives Business Environment Conclusion

Tri Island State Small in size - 344 sq km 344 q

(133 sq miles) Population – 110,000 Per Capita Income - Per Capita Income -

US$4,300 Located within the

C ibb SCaribbean Sea◦ 2626 km (1623 miles) off

MiamiL th f ( ) h b ◦ Less than four (4) hours by air◦ Within the same time zone

Grand Etang LakeVolcanic Mountain

Volcanic Mountains

● Volcanic Mountains● Fragrant spice trees● Rare tropical flowers and fauna● Stunning beaches

Pi

Tropical rainforest

● Picturesque towns● Cascading rivers and waterfalls● Lush Rainforests● Lush Rainforests● Crater lakes● Historical & Heritage Sites

Cascading waterfall

Historical & Heritage Sites

Diversified economyy◦ Agriculture◦ Manufacturing◦ Construction

T i◦ Tourism◦ Telecommunications

Major exports◦ Fresh Fruits & Cocoa◦ Fresh Fruits &

Vegetables ◦ Cut flowers◦ Fish

R Banana◦ Rum◦ Agro Products (Jam,

Jellies etc.)◦ Tourism Services

Banana

Tourism ServicesNutmeg

GDP Growth Rate averages 3.4%

◦ 2000(7.91%)◦ 2001(-2.89%) 15.00%

20.00%

( 9 )◦ 2002 (2.41%)◦ 2003 (7.18%)◦ 2004 ( 3 35%)

10.00%

◦ 2004 (-3.35%)◦ 2005 (16.98%) ◦ 2006 (4.41%)

( )0.00%

5.00%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009◦ 2007 (7.24%)◦ 2008 (1.6%)◦ 2009 (-7.65%) -10.00%

-5.00%

9 ( 7 5 ) 0 00%

Low rate of Inflation

◦ 2000(3.4%)◦ 2001(-0.7%) 7.00%

8.00%

9.00%

( 7 )◦ 2002 (2.3%)◦ 2003 (1.6%)◦ 2004(2 5%) 4.00%

5.00%

6.00%

◦ 2004(2.5%)◦ 2005 (5.8%) ◦ 2006 (1.7%) 1.00%

2.00%

3.00%

◦ 2007 (3.9%)◦ 2008 (8.2%)◦ 2009 ( 0 3% ) -2.00%

-1.00%

0.00%2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

◦ 2009 ( 0.3% )

Foreign Direct Investment

◦ 2001 (US$60 million)◦ 2002 2000 (US$39 million)

◦ (US$57 million)120

140

◦ (US$57 million)◦ 2003 (US$90 million)◦ 2004 (US$66 million)

80

100

4 ( $ )◦ 2005 (US$75 million)◦ 2006 (US$96 million)

(US$ illi )40

60

◦ 2007 (US$97 million)◦ 2008 (US$125 million)◦ 2009 (US$91 million) 0

20

2009 (US$91 million)2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

SERIES2003 2004 2005 2006 2007 2008 2009

G D ti P d t t F tGross Domestic Product at Factor Cost in Current Prices (EC$ Mil) 963.9 931.62 1089.59 1137.6 1323.66 1409.32 1,386.22

Major Contributors to GDP in constant prices EC$M

Agriculture 94.25 81.32 57.83 74.8 79.85 85.52 91.75

Manufacturing 60.67 53.02 65.2 69.5 73.36 65.75 66.87

Tourism 85.41 75.95 45.17 62.5 82.89 92.81 71.15

Construction 101.92 105.27 234.19 217.09 168.65 139.99 74.27

Transportation 132.96 143.27 174.83 163.41 200.23 187.57 183 66183.66

Communication 62.68 58.9 76.99 80.84 78.14 81.04 73.89

Government Services 161.52 185.51 181.51 188.77 216.37 267.62 270.54

Source: CSO and Eastern Caribbean Central Bank (ECCB) & IMF

At Factor cost in constant prices (EC$ M)

Westminster Style Parliamentary form of governmentC tit ti ll h ld l ti fi Constitutionally held elections every five years

Executive branch - a prime minister, cabinet Legislative branch - House of Representatives (5 Legislative branch - House of Representatives (5

members), Senate (12 appointed members -6 appointed by the government, 1 private sector rep., 1 labor rep., 1 rep. from farmers and 3 from the leader of the opposition)

Member of the eastern Caribbean court system Member of the eastern Caribbean court system Two significant political parties Ruling party – 11/4 majority Ruling party 11/4 majority

Fully deregulated telecom sector Independent Regulatory Authorityp g y y Nationwide Fibre Optic network International connectivity of up to 30 y p 3

Gbps per fibre pair Two major players – Lime , Digicelj p y , g Nationwide Cable Broadband Operator 90% plus GSM Mobile coverage9 p g High Speed Broadband Service Grenada Chairs CARICOM ICT Commitee

Competitive utility cost Competitive minimum wage Competitive minimum wage Low personal/corporate income tax High labour productivity High labour productivity High adult literacy (96%) Young and trainable workforce Young and trainable workforce Good labour relations Attractive Investment Incentives

Safe and peaceful lifestyle Many conveniences readily available Many conveniences readily available Excellent schools from elementary to university Diverse sporting activities on both sea and landp g International cuisine flavored with renowned

Grenadian spicesL t f li i Low cost of living

Easy access to the US, Canada Europe & South AmericaAmerica

The Best location to live, doing The Best location to live, doing business and to raise your kidsbusiness and to raise your kidsbusiness and to raise your kidsbusiness and to raise your kids

Port Louis / Camper & Nicholson Marina Nicholson Marina ProjectFour Seasons Resort Four Seasons Resort DevelopmentLevera Beach ResortPrickly Bay Developmentp

Port Louis /Camper & NicholsonM i P jMarina Project ECD$1.6 BillionECD$1.6 Billion

Mt Hartman/Hog Island

Government property Located in the south 477 acres including an off 477 g

shore island

Our Global Corporate CitizensOur Global Corporate Citizens

No. Name of Business Entity Field of Business1 Sogecoa Caribbean Ltd. Construction2 Sogecoa International Restaurant Restaurant2 Sogecoa International Restaurant Restaurant3 Langdong Building & Manufacture Company Construction4 Longyun Building & Manufacture Company Construction5 Lingjun Ltd.(Flour Factory) Manufacturing6 Lingjun Ltd.(Supermarket Store) Wholes & Retail Trade7 Flag Chinese Restaurant Restaurant8 Jiangsu Geology & Engineering Co. Caribbean Ltd. Construction9 ChuLight Chinese Restaurant Restaurant9 ChuLight Chinese Restaurant Restaurant

10 Xin Yuan Restaurant Restaurant11 Chinatown Restaurant and Electronics Shop Restaurant12 Chinatown Electronics Shop Retail Trade13 Peiking Chinese Restaurant Restaurant14 EveryTrading Ltd. (2 Stores) Wholes & Retail Trade15 XinLong Chinese Restaurant Restaurant

Economic & Commercial OfficeChinese Embassy in Grenada

Tourism Manufacturing Manufacturing Agriculture & Agri-Business

Ed i & T i i Education & Training ICT Services Financial Services Health & Wellness Creative industries Energy Energy

I b d I S Inbound Investment Sectors◦ Tourism Tour operators; Inbound and outbound destinationsTour operators; Inbound and outbound destinations Real estate investment Services and entertainment sectors◦ Manufacturing Electrical appliances and electronic equipments

All t ith l t G d di t ib ti All sectors with goal to use Grenada as a distribution hub

◦ Agriculture Development & Agricultural Processingg p g g Farming improvement, product diversification and

enhancementV l dd d f t i /P i Value added manufacturing/Processing

Inbound Investment Sectors - Continued◦ Education & Training Seek out scholarship opportunities for Grenadian studentsSeek out scholarship opportunities for Grenadian students Investments in the trade school sectors in areas of medical

support services Radiology dental/medical technicians; Lab Radiology, dental/medical technicians; Lab

technicians/assistants◦ ICT Services

S f i d d l f b d i Software testing and development of content based services Broadband services Regional service center/training facility

◦ Financial Services Investments into the development banking sectors OECS regional Financial Center for trade and investmentOECS regional Financial Center for trade and investment

Inbound Investment Sectors – Continued◦ Health & Wellness World Class health care for the aged and retireesWorld Class health care for the aged and retirees Center of Geriatric care and rehabilitation Additional support facilities and services for existing

facilitiesfacilities Herbal and traditional medicinal research and treatment

◦ Environmental Services Solid waste cleanup and rehabilitation into viable industries Development of downstream by products

◦ Renewable Energygy Oil and Gas downstream industries Development of Grenadian based regional industry and

capacity for solar and wind turbine energy sectorscapacity for solar and wind turbine energy sectors

Outbound Trade Sectors◦ Spice and Seasoning Products Mixed and stand alone spice products Jams and Jellies for various pastry production

C i i f i i Customization for unique taste requirements◦ Exquisite Rums Focus on repackagingFocus on repackaging Market as high end/niche’ market product◦ Raw Agricultural Products Nutmegs, Bananas, Cocoa◦ Herbal Medicinal Products

NutMed Aromatherapy Products NutMed, Aromatherapy Products

Outbound Trade Sectors - Continued◦ Data Processing Medical billing services Courier/transportation services Time/Labor intensive data input services Time/Labor intensive data input services Technical support call centers◦ Clothing Manufacturingg g Leverage preferential CBI policy for garment entry

into US marketW h i d Di t ib ti◦ Warehousing and Distribution Development of Grenada into a regional distribution

center for the OECS countries

Potential Sites for To rism De elopment Tourism Development

Projectsj

112 acres Southeastern coast of St. David’s 40 minutes from International Airport 40 minutes from International Airport 11/2 miles of shore and beach front Electricity, telephone and water to site

300 acres3 miles off GrenadaFour villas½ mile beach

20 acre islandGovernment owned 1550 ft of sandy beach3 acre landscaped lagoon

Investment allowances Tax exemptions on building materials ,

equipment , packaging material and raw materials.

Reduced property transfer tax Tax credits for training ,research and

development.p Provisions for carry forward of losses

Extremely transparent and legal processesN t i ti t f f i No restrictions on movement of foreign currency

No restriction on repatriation of capital, dividends interest and other distribution of gainsdividends, interest and other distribution of gains

No restriction on foreign ownership No minimum monetary investment requirements No minimum monetary investment requirements Liberalized trade policy régime One stop shop to eliminate barriers to invest One stop shop to eliminate barriers to invest Attractive investment incentives

Search for and register the business name with the Supreme Court RegistrySupreme Court Registry

Prepare and notarize Company Statutes and register the company with the Supreme Court Registry

Register the business with the Inland Revenue Department for paying taxesR i t th b i ith th N ti l I Register the business with the National Insurance Scheme for social security payments

Apply to the Grenada Industrial Development Apply to the Grenada Industrial Development Corporation for investment incentives and assistance to obtain permits and licenses

d i d d f b id i d d f b i

Grenada’s business climate is one of the best in the

Grenada is open and ready for businessGrenada is open and ready for business

Grenada s business climate is one of the best in the region◦ Provides low cost of doing business

A i l d N h A i M k◦ Access to regional and North American Markets◦ Educated and willing workforce◦ Attractive tax incentives and benefits

Grenada is a very safe and comfortable place to do business◦ Excellent environment for a good life and education◦ Excellent environment for a good life and education◦ Great place to raise a family◦ Our people are friendly and welcoming

EMBASSY OF GRENADACOMMERCIAL SECTION

T-5-2-52 Tayuan Diplomatic CompoundT 5 2 52 Tayuan Diplomatic CompoundChaoyang District, Beijing, CHINA

Phone: 010-6532-1208 / Fax: 010-6532 1208Phone: 010 6532 1208 / Fax: 010 6532 1208Email: beijingembassy@grenadagov.org