The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

THE DEPUTY prime minister is targeting Saudi Arabia as a key source of investment capital for The Bahamas with the Government seeking to “match” the $6bn worth of projects already approved during its second year.

Chester Cooper, in a video recorded following his trip to the oil-rich Middle Eastern kingdom and World Travel & Tourism Council’s (WTTC) global summit, said he and other officials had met with private investors including a hospital and healthcare developer as part of the Davis administration’s drive to attract increased foreign direct investment (FDI).

While he did not identify or breakdown the $6bn in investments approved since the administration took office on September 16, 2021, he added that he had pushed The Bahamas’ merits as a regional aviation hub in meetings with fellow Caribbean tourism ministers while attending the WTTC event.

Pointing to The Bahamas’ proximity to the US, present air connectivity and existing US pre-clearance and pre-check facilities, Mr Cooper said he hoped “that in the medium-term” direct airlift will be established between this nation and Saudi Arabia.

Confirming that The Bahamas was working towards “visa waivers” for Saudi nationals travelling to this nation, and airline code sharing agreements that would allow for seamless transfer of their luggage between flights, Mr Cooper sought to manage expectations by indicating that this nation’s courting of the Middle Eastern kingdom will not automatically translate into increased business and investment overnight.

Pointing out that the relationship between Nassau and Riyadh has to be “nurtured”, the deputy prime minister said last week’s meetings are “not a one-shot deal” and have to be built upon through continual engagement if The Bahamas is to benefit economically from a nation and region it has not tapped consistently in the past.

Speaking after meetings with both the Saudi foreign and tourism ministers, Mr Cooper said: “The Bahamas has signed an agreement to establish diplomatic relations with Saudi Arabia, and this is a step in the right direction to cement relationships with the kingdom of Saudi Arabia.

“We are advancing this relationship now by doing business, and lining up the possibility for Bahamian companies to do business in Saudi Arabia and Saudi Arabian companies to do business in The Bahamas.” While distance, legal, logistical and other practical difficulties will have to be overcome for that to begin in earnest, Mr Cooper said his meeting with the kingdom’s minister of tourism has also yielded positive results.

“We’ve signed a Memorandum of Understanding (MoU) to co-operate on tourism and investment matters, to co-operate with our Tourism Development Fund and Tourism Development Corporation. You will be hearing soon about some of the steps being taken as a result of this MoU,” Mr Cooper said. “This is a two-way relationship....

“We’ve also met with private investors. We’ve encouraged them to invest in The Bahamas. We’ve had investments in The Bahamas, over the course of the first year, $6bn already approved. We want to match that in our second term, our second year in office, and this will mean adding new sources of investment.

“We believe Saudi Arabia can be a great source of new investment for The Bahamas through their sovereign wealth fund, through the Saudi Fund for Development, and through private investors. As well, in addition to this meeting, we had occasion to tour a new hospital facility, a private hospital here in Saudi Arabia. It was impressive.”

Mr Cooper, noting that the Government has pledged to build two new hospitals, one in New Providence, the other in Grand Bahama, said The Bahamas needed to acquire management expertise through “outsourcing” its existing medical facilities, mentioning those in Abaco and his own constituency of Exuma as possible candidates.

“We must continue to nurture this relationship,” the deputy prime minister added. “We expect these conversations with this private healthcare developer to continue, and business opportunities in this space. We hope to take advantage of these opportunities, make the appropriate linkages with the authorities in The Bahamas and cause there to be even more investment in healthcare, health and wellness, in The Bahamas.”

Mr Cooper said his discussed “multi-destination travel” to the Caribbean by Saudi and Middle Eastern visitors during meetings with his tourism ministerial counterparts from Barbados, Jamaica, Belize, Grenada and the Cuban ambassador to the kingdom.

“We believe, again, that The Bahamas can be a great hub for the Caribbean. We believe we can be a great first step given our location in the [Americas]. We are 30 minutes from Miami, two hours from New York and less than three hours from Toronto. We have pre-clearance, we have TSA [Transportation Security Administration] pre-check. We have Bahamasair, which has a legacy of interconnectivity for the islands of The Bahamas,” the deputy prime minister said.

“We must use that asset, our experience and know how to push through the Caribbean.” Calling for “open skies” within the region, he added: “One of the things we’re also working towards with the Ministry of Foreign Affairs is visa waivers for Saudi travellers to make it easier to come to the Commonwealth of The Bahamas.

“We’re working with our airline partners, including Bahamasair, to create code share inter-airline agreements so when you check your bag in Riyadh travelling to North Eleuthera, you can have that bag arrive in North Eleuthera without having to touch it once in the entire journey. These are some of the things we are working diligently on. We hope that in the medium-term we will have direct airlift from Saudi Arabia to Nassau.”

In the meantime, Saudi and Middle Eastern travellers will have to rely on the near-daily direct, non-stop service to Nassau provided by British Airways flying from Heathrow. Mr Cooper said: “We are making inroads into the Middle East markets. I think we have formed and nurtured some important relationships....

“This is not a one-shot deal. This is a relationship-building exercise, and if we do this right, Saudi Arabia can be an important ally in the business and investment and tourism space, not just for The Bahamas but the entire Caribbean region.”