IM Yearbook 2020/21

INDUSTRY OVERVIEW
DOUBLING
DOWN ON
PROGRESS
What was once a niche industry has matured and proliferated with a host of new
investment migration pathways emerging around the globe. Amid changing market
dynamics and growing opposition, the sector is now rising to the challenge of
advancing positive trends and fast-tracking its own transformation journey.
The investment migration sector
began the year with nothing but
prosperity on the horizon. The
sector had evolved globally, with more
than 100 countries offering various forms
of investor visa options, including many
of the world’s richest countries such
as the US, UK and Australia. Growing
wealth in many of the sector’s main
source markets ensured that demand
from high-net-worth individuals
continued to expand at a robust pace.
Global organisations, including the
International Monetary Fund (IMF)
and the World Economic Forum (WEF),
described investment migration as one
of fastest growing economic enablers of
modern times for many small states.
A few months later, the sector is
contending with a wave of disruptive
forces. Amid the upheaval caused by
Covid-19, growth is shifting, investor
priorities are changing, and the level
of scrutiny is rising. The sector is still
growing, but also facing powerful
headwinds. The general consensus is that
investment migration’s future is full of
potential, but the industry must truly come
together to effectively address the genuine
concerns of international institutions.
Beyond the surface of this billion-dollar
industry, a lot of new and innovative
ideas are emerging that have the power to
transform investment migration into a tool
for sustainable and inclusive development.
A Long History
Investment migration is not a new
phenomenon. Some industry experts point
out that it was common in the Roman
Empire to grant citizenship in exchange for
money, while others say that in 17 th century
France, under Louis the Great, it became
a widespread practice to sell noble titles
to affluent commoners to finance wars.
Investment migration today is understood
to have its origins in the Caribbean when
St. Kitts and Nevis launched the first
citizenship-by-investment programme in
1984 as a tool for economic development.
Since then, the business model has
quickly evolved and was developed
further with the introduction of the golden
visa concept by Portugal. In 2010, four
EU member states hosted golden visa
programmes, just seven years later, nearly
half of all member states established
them. Investment migration has grown
into a global industry and is featured in
immigration law in most UN recognised
countries, albeit in different forms and
shapes. Globally, some 60 countries are
actively promoting their programmes, with
30 of them being the most relevant and
attracting the largest share of applicants.
Countries such as the US, Canada,
Australia, and the UK – all offering paths
for immigrant investors – have long been
among the favourite destinations of
high-net-worth individuals. Citizenshipby-investment
programmes are estimated
to receive 5,000 applications per year,
while tens of thousands of wealthy
migrants are acquiring golden visas
globally, generating billions in investments
that are being mobilised to create jobs
and encourage economic activity.
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Investment Migration Yearbook 2O2O/2O21