Welcome to another promising year – a year brimming with boundless opportunities across our business landscape. It holds the potential for business entities to reap success, marked by meaningful accomplishments, as they continue to evolve in response to the shifting dynamics and emerging technologies globally. Indeed, we are happy to produce this 17th edition, as we share insights and highlight the exciting developments unfolding locally and internationally.
The year kicked off with the Government of Barbados encouraging Barbadians and friends of Barbados to either come home or come to Barbados to participate in We Gatherin', the 52-week festival which touches all eleven parishes. The celebration of culture, heritage and community was originally conceptualised to be held in 2020 to provide opportunities for Barbadians, visitors, investors and friends of Barbados, while encouraging collaboration, celebration, participation and investment in events and projects across the island. From an investment perspective, the Barbadian diaspora especially, is encouraged to utilise this opportunity to seek out the several opportunities to establish businesses of substance on the island.
On the global stage, Invest Barbados is pleased to lead the charge on Barbados' participation in Expo 2025 Osaka in Kansai, Japan. At the Expo, under the theme Designing Future Society for Our Lives, eight billion people from across the world will converge in one space for six months commencing April 13, to share ideas and witness innovations that are designed to address challenges facing humankind. Barbados will be joining 158 countries, regions and nine international organisations in Osaka. We will be flying our national flag high and proud, depicting the theme, Barbados is Life: Empowering People -Transforming the World. The Barbados Pavilion at Expo 2025 Osaka promises to feature a diverse showcase of the available business opportunities, as well as who we are as people, our heritage, stability and culture.
Barbados' participation in the Expo will create a symbiotic relationship where the jurisdiction can learn from leaders in innovation, particularly as it relates to digital technologies and artificial intelligence (AI). In understanding how AI works, the more it can be seen that such technology is nothing to fear, but rather one to embrace as it can enhance operations, making everyday tasks in the home or in business more efficient.
The world is a mere five years away from the culmination of the United Nation's target for achieving the Sustainable Development Goals (SDGs). Barbados' commitment to empowering its people through sustainability and innovation in addition to contributing to global transformation through the advocacy for fair economic policies, are in alignment with the SDGs and will be showcased through a combination of business, cultural and other wholesome, educational and fun activities representing Barbadiana.
Incentivising Innovation and Sustainability
Barbados continues to be a leading voice in shaping international discussions on critical issues such as climate transition financing, climate change mitigation and North-South dialogue. Such leadership enhances the country's status as a trusted partner for investors seeking to align with global sustainability and responsibility goals. As such, the Bridgetown Initiative 3.0 – first launched in 2022 – robustly led and promoted by our esteemed Prime Minister, The Hon. Mia Amor Mottley, was published late last year in sustained efforts to reform the global financing system, prioritising climate-vulnerable nations such as those in the Caribbean. In Barbados, the government offers attractive incentives to investors that include up to 50% tax credits and refundable tax credits on zero-emission and marine rehabilitation projects.
In the research and development (R&D) and pharmaceutical spheres, Barbados is committed to fostering innovation, development and collaboration with creatives across multiple industries. Plans are in train for the establishment of a 'patent box' regime to encourage innovation. This initiative allows companies to apply a lower corporate tax rate to profits earned from patented inventions and other intellectual property. An investment in R&D activities in Barbados will benefit from a refundable R&D credit of 50% of eligible expenditure. Qualifying activities include fields such as medical sciences, engineering and technology, natural sciences and financial technology. Furthermore, income arising from intellectual property located in Barbados is subject to a particularly favourable 4.5% tax rate.
Similarly, with the development of a regulatory framework, Barbados continues to advance the establishment of a local pharmaceutical sector in collaboration with Guyana and Rwanda. This initiative seeks to secure a stable supply of medicines for Barbados, CARICOM partners and other African countries, particularly in response to global health challenges, creating exciting opportunities for investors.
Competitiveness in Business and Digital Transformation
As we remain committed to ensuring that Barbados continues to be a premier jurisdiction for investment and global business, maintaining a seamless and efficient business environment stands as one of our top priorities. As such, the Government of Barbados prioritises initiatives that will enhance the sector and solidify Barbados' competitive position stage. On the horizon is the soon to be established GovTech Barbados Ltd, a statutory corporation that will be responsible for a whole of government approach to the ongoing digital transformation of government with an aim to improve the quality and timeliness of service delivery. This is vital to enhancing the ease of doing business in Barbados and will ultimately lead to public sector modernisation and innovation. Moreover, initiatives such as 'Barbados Delivers', a programme geared towards removing barriers to economic growth and the recently launched Business Barbados, an entity designed to further enhance the local business climate, are all essential to positioning Barbados as an investment jurisdiction of choice and fostering a business-friendly environment that supports sustainable growth.
Looking Ahead
As we look ahead, we continue to monitor emerging developments across our key markets of Canada and the USA, which has been a topic of keen interest. As new policies and approaches to trade, taxation and investment take shape under fresh leadership, business and investors alike will be closely monitoring potential shifts in strategy. While it may still be too early to predict the full extent of these changes, we remain confident in Barbados' resilience and adaptability. Our unwavering commitment to preserving the island's reputation as a global financial centre ensures that we will continue to facilitate an environment conducive for investment.
Equally important, we anticipate further profitability in the global business sector, and by extension the Barbados economy, which experienced three consecutive years of growth and a robust performance of 4% increase in real GDP in 2024, surpassing the estimated global growth rate and continuing its expansion. This, in addition to the nation's diversified range of thriving sectors, a robust investment pipeline, responsive industry stakeholders and a welcoming investment climate, makes the future look bright and Invest Barbados is excited to continue this journey together with you!
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