Why Guam is a good place for foreign investors
Beyond its beautiful beaches and temperate weather, Guam offers attractive and competitive incentives to foreign investors who are interested in setting up a business here. Here are the main reasons why Guam is a good place for foreign investors:
- Business Friendly Political Environment
Guam’s government is committed to providing a conducive business-friendly environment. At the same time, it continues to maintain a stable political climate while fostering and diversifying economic development throughout the island. The government and its investment and business entity, the Guam Economic Development Authority (GEDA), stand ready to offer assistance in ensuring potential success for new business enterprises in the island.
Complementing the government’s efforts, Guam has an active and thriving business community composed of multicultural and multinational business community groups that are eager to give additional support to prospective business investors and entrepreneurs. These include the Guam Chamber of Commerce, the Small Business Development Network (SBDN) and the Citibank Women in Business Program.
Guam’s infrastructure is considerably more advanced compared to its neighboring small island nations and developing nations within its region. As such, its infrastructure is built according to U.S. standards and, therefore, meets business expectations. These include:
Telecommunications – Many international telecommunications providers such as Sprint, AT&T, IT&E connect the U.S. and Asia through Guam’s undersea fiber-optic cables. ISDN, DSL, cable modem lines abound on the island and also wireless broadband connections, wifi hotspots are well-established. Cellular services are widely available and placing a call to Guam is just like making in-state calls in the U.S.
Financial Services – Guam has a well-established financial services system which is part of the U.S. banking system. Guam offers a full array of services for personal and commercial banking. Major commercial banks, investment banks, savings and loans institutions, venture capital firms, insurance companies, investment advisors, and accounting firms have branches in Guam. Financial institutions that are located in the island include: Citibank, Bank of Hawaii, First Hawaiian Bank, ANZ Bank, USAA, AIG, Guahan Insurance, Ernst & Young, and Deloitte.
Transportation – Guam is very accessible by air with many international and domestic commuter airlines flying regularly to and from Guam. Guam also has the largest U.S. deep sea port in the Western Pacific. As of 2014, the port handles about 90 percent of the island’s total imports and about 100,000 cargo containers pass through the port annually.
Real Estate – Guam has a well-developed residential and commercial real estate market and in Guam, non-islanders are allowed to own real estate land and/or property. Commercial property includes both office and warehouse spaces with a majority of the office spaces are located in the capital and the warehouses are located in the Harmon Industrial Park.
- Investor Incentives
Guam offers a comprehensive program of incentives for prospective investors to operate their business on the island. The GEDA administers this program and it is divided into three categories: tax incentives, manufacturing and trade incentives, and tourism, immigration, and foreign investment incentives. Check out the GEDA’s website for more information on these incentives.
Geographically, Guam is about 1,500 miles from both Manila, Philippines, and Tokyo, Japan, and about 3,800 miles west of Honolulu, Hawaii. Its location makes Guam an important military strategic position within the Asia Pacific region and the U.S. has both a military air base and naval base with an estimated 7,000 personnel stationed there. Guam adheres to rules of U.S. law, jurisdiction and courts, taxing system, currency (U.S. dollar), and is directly overseen by the federal government.
For foreign investors looking for investment opportunities in the near future, consider Guam as one of those highly promising destinations, given its solid and well-established infrastructure, stable and secure government, and a comprehensive list of incentive programs. Not only that, foreign investors can also get to experience and enjoy the warm hospitality offered by the people of Guam.
Friendly people, great food, gorgeous weather, and investor friendly — what not to love in Guam?