The Government recognizes the value of foreign investment as a means of promoting more vigorous economic development. The taxation system is currently being modified with a view to assisting the economic development process. Principal opportunities for foreign investment are likely to be in the areas of tourism, fisheries, derivative products of the coconut tree and fresh or processed tropical fruits and vegetables. The country is a beneficiary of various trade agreements which allow preferential access to major markets for its exports. Given the acute shortage of labor of all skill levels in the Marshalls, a relatively high proportion of non-Marshall Islanders in the work force is to be expected.
Work permits are available to the foreign investor although stringent rules apply.
In spite of considerable progress in improving the tenure system, including the issuance of 50 year leases, acquisition of land for investment remains a formidable barrier with difficulties caused by the traditional system of multiple rights. The Foreign Investment Advisory Board should be the first point of contact for potential investors, providing detailed information on all requirements. The Board also processes applications for investment licenses. Insurance companies who are applicants must submit both a certificate stating that the company is authorized to transact business in the country of registration or incorporation and a certified copy of the last annual company statement. In addition to an investment license, foreign investors must also obtain a business license from the local government authorities of the area in which they intend to operate.