The first-ever Saudi-Caribbean Summit, a historic event meant to strengthen alliances, fortify partnerships, and open new avenues for collaboration between the Kingdom and the Caribbean nations, took place in Riyadh on Thursday.

What is the significance of this summit? How will it affect investors, especially those holding Caribbean passports?

The importance of the Saudi summit with the CARICOM countries

Boosting economic relations

The summit contributes to establishing a future strategic partnership between the Kingdom and the Caribbean Community (CARICOM), which includes countries providing Citizenship by Investment (CIB) programs. It delineates the primary objectives and mechanisms for political dialogue, trade facilitation, investment promotion, and tourism cooperation. The summit is poised to enhance trade and investment flows between Saudi and Caribbean investors in sectors including tourism, food industries, agriculture, energy, and financial services. It also facilitates the exchange of experiences, research, and modern technologies.

Fostering diplomatic relations, opening new embassies

The meetings are expected to enhance diplomatic relations between the two parties, possibly leading to the opening of Caribbean embassies in Saudi Arabia or facilitating travel by introducing electronic visa application processes or signing visa waiver agreements. The Kingdom recently took a remarkable initiative, allowing citizens of St. Kitts and Nevis to apply for visas electronically or upon arrival at one of the Kingdom’s international entry points.

Direct air flights

To further boost the ties between countries in the region and Saudi Arabia, it was announced during the summit that the Kingdom will discuss implementing a direct flight to Caribbean nations through its newly established airline, Riyadh Air. A direct 12-hour flight between Saudi Arabia and the Caribbean was successfully tested on Nov. 15 to serve as a potential “gateway” to South America and facilitate travel to Caribbean countries.

Political desire to cooperate

During the summit, leaders and ministers from Saudi Arabia and CARICOM countries revealed that deep and comprehensive cooperation has begun to emerge, driven by a political will from both regions to build bridges between the Middle East and the Caribbean.

Saudi Investment Minister Khalid Al-Falih emphasized in his opening speech that the partnership between the Kingdom and CARICOM is marked by a new and exciting chapter with the historic and important inaugural Saudi-CARICOM Roundtable Meeting. Among the attendees were prominent Saudi private sector entities, including the Public Investment Fund, Aramco, Saudi National Bank, SABIC, and the Saudi Fund for Development. He added, “The Caribbean is a high-priority economic investment and business opportunity for Saudi Arabia. We want to build steps by connecting you with Saudi investors, with a keen eye on investing in your region.”

CARICOM Chairman and Prime Minister of Dominica, Roosevelt Skerrit, pointed out that there are tremendous opportunities for significant investment with the Saudi government and the private sector. There are many areas for cooperation, including tourism, agriculture, financial services, energy, gas, technology, industry, real estate, infrastructure, and transportation. He added, “We want to build on the steps already taken by connecting CARICOM countries with Saudi investors who have globally impressive success stories.”

Concessional loans to support Caribbean countries

Before the summit, the Saudi Fund for Development (SFD) signed a memorandum of understanding (MoU) with some Caribbean countries to provide concessional loans for the development of these countries. This includes an MoU with Dominica to provide a concessional development loan of $41 million for the infrastructure rehabilitation project in the capital, Roseau. In the second deal, the fund will allocate $40 million to the Needs must Power Plant expansion project in St. Kitts and Nevis. This initiative is focused on bolstering the energy sector and improving energy quality and access for its people.

It’s worth noting that SFD has already employed $670 million in the CARICOM region to finance 12 development projects in the Caribbean Community. This includes concessional loans for the expansion of the University of the West Indies in Antigua and Barbuda, the climate-smart infrastructure project in Grenada, and the rebuilding and rehabilitation project of St. Jude Hospital in Saint Lucia.

Credibility of CIB Programs

It’s noteworthy that the summit reflects the sincere intention of Caribbean countries to deepen cooperation and partnership with Gulf countries.  It also reflects the strategic position of these countries on the world’s political and economic map.

Five countries from CARICOM provide reliable Citizenship by investment programs: Antigua and Barbuda, Dominica, Saint Lucia, Saint Kitts and Nevis, and Grenada. These programs aim to attract reputable investors and businessmen and grant them citizenship by contributing an amount starting from $100,000 to the country’s economy. In exchange for this investment, Caribbean countries offer multiple benefits, including visa-free access to more than 130 destinations worldwide, containing the Schengen Area, as well as tax exemptions on inheritance, foreign income, and capital gains, in addition to the ease of doing business and the opportunity to invest in promising and diverse sectors.