Cayman Islands Partners

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Cayman Business

The Cayman Islands is globally recognized as a leading offshore business hub, attracting individuals and companies from around the world across various industries and services.

Main Industries in the Cayman Islands

The primary industries driving the Cayman Islands economy include financial services, tourism, and real estate development. While tourism and real estate are vital contributors, financial services are widely regarded as the cornerstone of the island’s economy. Together, finance and tourism account for around 60% of the nation’s GDP. Although tourism faced challenges during the COVID-19 pandemic, it is gradually recovering as the country reopens. Meanwhile, the financial services sector maintained strong growth throughout the pandemic and continues to be the largest business sector in the Cayman Islands.

An Economic Overview of Cayman Finance

One of the key factors contributing to the Cayman Islands’ prominent offshore business reputation is the absence of direct taxation. This has helped the islands attract a diverse range of businesses, with approximately 70,000 companies operating within its borders. These include thousands of mutual funds, insurance companies, law firms, accounting practices, and banking institutions.

As a renowned international financial hub, the Cayman Islands’ financial services offerings align with global standards and best practices. The country’s appeal is further strengthened by its stable regulatory environment, strong infrastructure, and economic and political stability. Combined with a highly skilled and diverse workforce, these factors make the Cayman Islands an attractive destination for businesses and industries from around the world.

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Construction and Real Estate Business

The construction and real estate sectors in the Cayman Islands are robust and highly profitable. Despite the challenges posed by the COVID-19 pandemic, construction and development remained active, though the situation did bring about unique obstacles. While the closure of borders significantly reduced stayover tourism, the introduction of appealing “staycation” rates, remote work opportunities for foreigners, and staffing adjustments helped maintain economic stability.

The construction industry, despite its growth, faced issues such as staffing shortages and difficulties in sourcing materials as global supply chain disruptions became more apparent. However, the demand for real estate has remained exceptionally high. From luxury beachfront homes and condos to affordable housing and commercial properties, demand continues to outstrip supply.

To meet this rising demand, a growing number of premium hotels and properties are being developed, ensuring that the needs of residents and visitors are met in a timely and efficient manner. The strength of the construction and real estate industries underscores the Cayman Islands’ position as a thriving and dynamic market.

Tourism and Ancillary Businesses

The tourism sector took a significant hit during the pandemic, despite efforts from both the government and private sector to mitigate its impact. Thousands of workers in hospitality, food and beverage, housekeeping, and leisure industries were forced to seek alternative employment as their jobs were scaled back or eliminated. Many long-established businesses were unable to survive and had to close their doors permanently. Tour operators, restaurant staff, and scuba diving operators particularly struggled in the absence of customers and guests.

However, some major resorts, including the Ritz-Carlton and the Westin, took advantage of this challenging period to embark on extensive renovations and refurbishments that had long been planned for the future. Now that the situation is improving, these properties are welcoming guests and employees back to newly updated and refreshed environments.

Restaurants and tour operations are also slowly returning to normal, although challenges remain in rehiring staff and training new employees to meet the rising demand. Industry leaders, real estate firms, and visitors alike hope that the Cayman Islands will soon fully recover as COVID-19 restrictions and travel protocols ease, bringing the island back to “business as usual.”

The Cayman Islands has a diverse range of industries beyond those already mentioned, and we’ll explore more of them elsewhere on our website. However, it’s clear that financial services, real estate, construction, and tourism-related businesses will continue to drive the island’s economy in the years to come. Whether you’re a local, resident, or a visitor, the Cayman Islands remains a prime destination for business and growth in a variety of sectors.

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