Curacao investment climate finds way up; Aruba again the most attractive

Published by Economisch Bureau Amsterdam on

Aruba once again holds the most attractive investment climate in the Caribbean region in 2024, followed by Sint Maarten. Curaçao’s investment climate is also showing positive development.

For the fourth consecutive year, Aruba has the most attractive investment climate in the Caribbean region, further improving its position compared to 2023. Sint Maarten ranks second due to a strong improvement in its investment climate. The high scores of Aruba and Sint Maarten are attributed to their rapidly growing economies. Curaçao climbs from seventh to fifth place.

Investment index: institutional, economic, and financial variables
Amsterdam Bureau for Economics has been publishing the Caribbean Investment Climate Index (CICI) annually since 2021. The CICI evaluates the attractiveness of the investment climate in seventeen Caribbean countries and compares them. The small scale of most economies, limited access to international capital, and reliance on imports in many Caribbean countries make attracting foreign investors crucial.

The CICI score is composed of eighteen different indicators that reflect the institutional, economic, and financial strength of the countries, thereby influencing the investment climate. For the full list of indicators and a description of the CICI, click here.

The Caribbean region is becoming increasingly attractive for foreign investors
Following the COVID-19 crisis, during which the investment climate drastically deteriorated, and the recovery period, where the investment climate slowly improved, the investment climate in the Caribbean region seems to be developing positively. The CICI scores for twelve countries have increased compared to 2023, while the investment climate in five countries has become less attractive. The scores for Sint Maarten, the Bahamas, St. Kitts and Nevis, and St. Vincent and the Grenadines have risen the most compared to 2023. Additionally, the investment climates of Cuba and Haiti are improving; both countries, traditionally ranked at the bottom of the CICI, are making positive strides. Meanwhile, the investment climate in the Dominican Republic, Puerto Rico, and Trinidad and Tobago has seen the most significant decline.

Aruba and Sint Maarten are the most attractive for investment
Similar to 2023, Aruba and Sint Maarten again achieve the highest CICI scores. The attractiveness of the investment climate in both countries is largely due to their strong economies. Aruba scores highest on institutional indicators. Despite the close scores of Aruba and Sint Maarten, there are differences between the two countries. Sint Maarten, unlike most Caribbean nations, has a growing population, creating dynamism in the labour market and still experiencing limited aging. On the other hand, Aruba is facing a shrinking population, which is accelerating aging. It is important for Sint Maarten to improve its data availability, as it scores below average in this aspect compared to other Caribbean nations.

Curaçao’s investment climate is recovering
Curaçao’s investment climate is improving this year. In 2021 and 2022, Curaçao ranked fourth, but due to a deterioration in the investment climate, it dropped to seventh place in 2023. Recent positive economic developments have contributed to a recovery of the investment climate, placing Curaçao in fifth place in 2024. Nevertheless, high government debt, low labour participation, and population decline remain challenges for the long-term development of the investment climate.

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