By Lindsay Thompson
NASSAU, The Bahamas – An estimated $18 billion in investments are in the pipeline for The Bahamas and will create unprecedented opportunities for Bahamians, Minister of Financial Services and Investments Vincent Peet said Wednesday, November 1.
The Minister was addressing the Bahamas Financial Services Board’s Combined Private Wealth Management Funds Sector Bahamas seminar at the British Colonial Hilton.
Participants examined issues affecting the financial services industry, particularly the country’s financial services sector that contributes about 20 per cent to the Gross Domestic Product and directly employs approximately 4,186 persons.
The Central Bank of The Bahamas 2005 Quarterly Economic Review stated that the industry invested $16.3 million in capital expenditure and contributed upwards of $35.2 million towards Government fees, $2.4 million on staff training and $402.7 million on salaries.
Over the past four years, more than 430 foreign investment projects were submitted to the Ministry of Financial Services and Investments, Minister Peet said. Of that number, 48 are under construction and 181 projects at various preparatory stages.
Such projects include Ginn in Grand Bahama, Kerzner International on Paradise Island, the I-Group in Mayaguana and the Ritz Carlton, also on Paradise Island, the Minister noted.
“The Bahamas is a hot spot for tourism, for investment and for financial services,” he said. “The Government is convinced that these three will enable The Bahamas to continue to grow, to prosper and to be an attractive destination of choice for the well discerning clientele.”
The Government, he added, is also committed to promoting the jurisdiction as a “successful, blue-chip” world-renowned, well-regulated financial centre.
Minister of Financial Services and Investments the Hon. Vincent Peet speaks at the Bahamas Financial Services Board briefing on Private Wealth Management and Funds sector at the British Colonial Hilton.
Minister Peet disclosed that the ministry is coming to the end of its first five-year strategic plan for the sector and has achieved most of its goals.
“However, the Government is not satisfied to rest on its past accomplishments and is determined that The Bahamas remains at the forefront of the financial services industry,” he said.
In this vein, the Government and the Bahamas Financial Services Board contracted last year PriceWaterhouseCoopers to conduct a branding survey of the financial services sector.
“Results showed that The Bahamas rated highly in trust and fiduciary services, private banking and corporate services,” Minister Peet said. “It also reaffirmed that political stability was the number one sought-after attribute of an IFC and The Bahamas’ solid reputation in this area was recognized by the high rating it received.”
The Minister said it was obvious from the survey that there is a need to increase the international awareness and understanding of this country’s capabilities.
“We are also conscious of the fact that competition in the industry will become more intense and that The Bahamas needs to be prepared to compete on a global basis to ensure that we remain an integral player in the international financial services sector,” Minister Peet said.
The results, he added, gave his ministry a basis from which to develop a second five-year strategic plan.
“This plan will enable us to build on our strengths and maximize the potential as identified in the survey,” Minister Peet said. “This Government’s commitment to public private sector partnership continues to be evidenced by the establishment of a Working Group made up of experts from the financial services industry and government, to review the results of the survey and to make appropriate recommendations for this second five-year strategic plan.”
