Cayman Islands Economy
The flourishing economy of the Cayman Islands economy is driven by tourism, with well over 70% of the nation’s GDP. Following tourism, financial services is the next key sector. The standard of living in Cayman is regarded as one of the highest in the region and the dollar value of the local currency is greater than anywhere in the hemisphere. It is pegged to the US dollar at .81 cents..
Over 2 million visitors travel to the Cayman islands each year. The Cayman Islands cruise ship sector is very successful and contributes a large portion of these visitors. Modernized cruise ship facilities and large shopping centres, duty free shopping is a major attraction for visitors.
The Cayman Islands government has reverently worked develop Cayman Islands as an international financial jurisdiction of top repute. The Cayman is a neutral tax jurisdiction with no forms of taxation, no company tax, no business tax. Many large international corporations involved in banking, insurance, trust management and mutual funds services are based in the Cayman, making up the financial services industry. More than 92,000 offshore companies, similar to Seychelles company, or International Business Companies are registered in Cayman. The financial sector is well regulated under the control of the autonomous Cayman Monetary Authority.
Cayman has tried hard to legislate away doubtful business based on drugs or money-laundering and has maintained a good reputation in this respect. It is a leading member of the CFATF (Caribbean Financial Action Task Force), and has signed Mutual Legal Assistance Treaties with the US and UK.