Grenada’s Citizenship by Investment (CBI) program continues to hit new heights. The Investment Migration Agency (IMA) Grenada has recently published CBI statistics for Q3 2024 revealing the program’s record number of application processing and revenues. Despite a sharp decline in new applications due to the increased investment thresholds per the Memorandum of Agreement signed in March 2024, which significantly increased investment requirements since August 2024, IMA Grenada has efficiently processed CBI applications from the backlog. This efficiency has contributed significantly to the program’s overall success.
Q3 Statistical Highlights
The CBI program saw a significant influx of applications in Q3, with 178 received, exceeding the total number from the first half of 2024. The peak of the demand was in July and August when 140 applications were filed. Grenadian authorities decided to delay the implementation of the Memorandum and increase the investment thresholds due to Hurricane Beryl. In September, only 38 new CBI applications were received. According to the Investment Migration Insider, by the end of 2024, it’s projected to receive around 435 CBI applications, a dramatic decrease from 2,297 in 2023.
The IMA Grenada processed 337 CBI applications in July 2024 alone, setting a record for the highest number of applications processed in a single month in the program’s history. In August and September, the agency further processed 92 and 136 applications, respectively, making a total of 565 applications processed in Q3 and 1,491 applications in the first three quarters of 2024. If this efficiency level is maintained, IMA Grenada can easily surpass last year’s processing achievements in the remaining months.
Out of the 565 CBI applications processed in Q3, 521 were approved, resulting in a rejection rate of 7.8%. Considering the total 2024 numbers, with 1,411 approvals out of 1,491 applications, the rejection rate is even lower at approximately 5.6%.
The NTF vs. Real Estate Investment Options
There are two main avenues to qualify for Grenada’s CBI program: contributing to the National Transformation Fund (NTF) or investing in a government-approved real estate project. The minimum investment threshold for the NTF option starts at $235,000, which enables a family of four to qualify for Grenadian citizenship. Alternatively, the real estate option requires a minimum investment of at least $270,000 in the case of joint investment and $350,000 if there is a sole investor.
In Q3 2024, investors overwhelmingly preferred the real estate investment option over the NTF contribution. Out of 178 new CBI applications, nearly 75% (133 files) chose real estate, while only 25% (45 files) opted for the NTF contribution. However, this imbalance is vanishing in approved applications: Out of 521 approved applications processed in Q3, 257 chose the NTF, while 264 chose the real estate option. The totals for the first nine months of 2024 reveal a slight preference among investors for the real estate option over the NTF contribution. Specifically, 56% of approved applications (794 out of 1,411) were for real estate investments, while the remaining 44% (617 out of 1,411) opted for the NTF contribution.
New Citizens and Generated Revenues
In Q3 2024, Grenada granted 1,827 new citizenships through the CBI program, bringing the total to 4,861 for the first nine months of the year. So far in 2024, 1,828 individuals qualified for Grenada’s passports through the NTF contribution, while 3,033 obtained Grenadian citizenship by making real estate investments.
Grenada’s CBI program has significantly bolstered the central government’s revenues. From January to September 2024, NTF contributions amounted to approximately EC$281.7 million (≈US$104.2 million, EC$1 = US$0.37). Government fees for real estate investment options totaled EC$132.3 million. The combined revenue of EC$414 million, along with other associated revenues of EC$36.1 million, highlights the substantial financial contributions from both avenues of the CBI program, playing a crucial role in the country’s economic development. However, associated expenditures reached nearly EC$59.8 million, resulting in a total net revenue of EC$390.3 million.
Real estate investments through the CBI program have also shown remarkable growth. The inflows to project developers’ escrow accounts have been substantial, highlighting the program’s role in stimulating the real estate sector and contributing to infrastructure development. The total real estate investments year-to-date amounted to almost EC$465.2 million, reflecting investor confidence in Grenada’s real estate market.
Reports citing local agents have noted that the government’s revenues from the CBI program surpassed EC$500 million in October. Officially, this data is expected to be publicly disclosed by January 2025.
Nationality Distribution
The geographic distribution of applications year-to-date highlights the program’s wide-reaching appeal. Chinese and Nigerian investors emerged as the top beneficiaries of the CBI program in Q3, making up almost 48.2% of all applications. Chinese nationals made up the largest group, constituting 24.4% of the total. Close behind were investors from Nigeria, contributing 23.8%. Other notable sources of applications included Ukraine (5.9%), the USA (4.9%), Lebanon (4.3%), and Pakistan (4.3%). Lesser but still significant contributions came from South Africa (3.4%), Vietnam (3.1%), Turkey (2.5%), India (2.2%), Iraq (2.2%), Egypt (1.9%), Algeria (1.5%), and Syria (1.2%). Investors from other countries collectively represented 14.4% of the applications. This diverse applicant base demonstrates Grenada’s ability to attract investors from various regions, leveraging its strategic advantages and investor-friendly policies.
Conclusion
Grenada’s CBI program has achieved new heights in Q3 2024, driven by efficiency in processing backlogged applications. The program’s continued success is a testament to Grenada’s strategic vision and its commitment to providing a conducive environment for global investors. As the program progresses, it is poised to further enhance Grenada’s economic landscape, attracting more high-net-worth individuals and fostering sustained growth.