Barbados Offers the Sun, The Sea, the Opportunity

Guests braving arctic temperatures one morning last week to attend a gathering hosted by the Barbados Investment & Development Corporation (BIDC) at New York's Grand Hyatt Hotel were cruelly reminded by Anthony J. Sobers of his island's sunny clime and balmy temperatures. But, azure seas and sandy beaches notwithstanding, Mr. Sobers, who took over as BIDC's Chief Executive Officer in October 2004, is in New York to promote Barbados as a business destination.

Tourism has been the backbone of the island's economy. Not wanting to rely on just one industry for its economic welfare, Barbados has been cultivating its status as an international business center for a number of years now, and is actively pursuing foreign investors. In 1956,the government of Barbados established BIDC as its investment promotion agency to expand business enterprises in Barbados and promote the island's goods and services abroad.

A program of incentives for industry includes special grants designed to help overseas companies offset some of their training costs when setting up shop in Barbados. BIDC's present focus is on information technology, call centers and software development, financial services and insurance, and manufacturing.

BIDC's New York office is on Second Avenue, and there are also offices in Miami, Toronto, and London.

Barbados is less than a five-hour flight from New York, and its proximity to Venezuela also makes it convenient for doing business in South America

With an English-speaking population of 271,000, Barbados is politically stable, with a judicial system based on British common law statutes, unambiguous investment laws, and a government that is committed to free enterprise and actively encourages foreign investment. Barbados became independent in 1966, but it has had a representative government since 1639 and remains a member of the Commonwealth. The country has a literacy rate of 98%; as a result, its workforce is highly educated, skilled, and productive.

A solid infrastructure with reliable power supply, an extensive road network, Internet capability and communications including broadband, serve companies that establish a base on the island. Airport and seaport facilities can compete with those of industrialized countries.

In its quest to become an international business hub, Barbados offers a range of incentives for foreign investors. It imposes no restrictions on foreign ownership and allows full repatriation of capital, profits, and dividends. Corporate profits of for-export-only manufacturers are tax-exempt for 15 years. And components, raw materials, production machinery, computers, and spare parts are exempt from import duties.

Barbados has entered into double-taxation treaties with 11 countries, including the United States, Canada, and Switzerland. It should be of particular interest to U.S. corporations that business convention expenses incurred in Barbados by U.S. corporations or organizations are deductible against U.S. taxes.

"It is important for us to remain focused on the promotion of Barbados as an international financial services center. We see that we can create a new dimension in our economy through services. Our economy does need to diversify, and this seems like a perfect year for us to diversify in," Mr. Sobers told The Sun.

BIDC's function includes identifying and pursuing market opportunities for goods produced in Barbados. "We don't only focus on professional services, but on a range of services available on the island," said Mr. Sobers. "Solar technology is another one of our strengths, so we are looking into that. Traditionally, in Barbados, we've done very well with that sort of technology, so we feel we have the capability of exporting some of it."

BIDC wants to be a one-stop service for investors interested in Barbados. Asked about his ambitions about the agency, Mr. Sobers said, "We want to be known as one of the best promotion agencies in the world."

It may be a tall order, but Mr. Sobers and his colleagues at BIDC are working hard. "How do we reshape ourselves to the point where people understand that we are customer-centered, that we are about providing solutions for customers, that's where I want to see the BIDC go in the future," said Mr. Sobers. In Barbados, it seems, the customer is king.

In early March, BIDC is taking potential investors to Barbados on an introductory trip. Interested investors can contact the agency's New York office.