Archive for July, 2011

Special Economic Zone to be launched in Cayman

Monday, July 25th, 2011

A special economic zone is to be launched by the Cayman Islands, in partnership with Cayman Enterprise City (CEC). The zone is aimed to attract global science, technology, commodities and derivatives, media, as well as educational entities to the jurisdiction.

On July 18, an agreement was signed to allow CEC the exclusive right to construct, develop, operate and maintain the special economic zone. The government of the Cayman Islands has announced its intention to start establishing the legislative framework for CEC to operate. More than USD 327 million is to be invested over the next 8 years.

CEC is to develop 5 “parks”: Cayman Internet Park, Cayman Media Park, Cayman Biotech Park, Cayman Commodities Park, and Cayman International Academic Park.

Cayman Premier, McKeeva Bush, commented on the deal: “CEC represents an opportunity for the Cayman Islands to diversify its economic base. It’s also worth noting that this project requires no government investment, as it will be completely privately funded, and the developer also has not requested waivers for duties on materials or stamp duties.”

Cayman economy to grow in 2011

Thursday, July 14th, 2011

Although there was a fall in GDP in 2010, the economy of the Cayman Islands is expected to return to growth in 2011. This was stated by Premier and Finance Minister McKeeva Bush.

When “The Cayman Islands’ Annual Economic Report 2010” was released, Bush commenting on it saying that the positive trend would be repeated through to 2014. These expectations were based on local economic forecasts as well as on the prediction of modest worldwide growth, coupled with the anticipated results of government action in the private sector.

According to the report, the Cayman Islands’ GDP fell by 4% in 2010, which was an improvement on the 7% decline seen in 2009. This decline is attributable to problems in the construction, real estate and financial services industries. As a result, real GDP per capita decreased from KYD 43,363 (USD 52,107) in 2009 to KYD 42,605. Inflation averaged 0.3% in 2010. However, due to rising international food and oil prices, it is predicted to increase to 1.9% in 2011.

The report shows that there were 2 opposing trends in the financial services sector. On the one hand, new company registrations and new partnerships rebounded, while, on the other hand, the report reveals downturns in mutual fund registration, stock exchange listings, insurance licenses and bank and trust licenses.

In accordance with the date provided in the report, the availability of banking credit improved. Domestic credit from commercial banks grew by KYD 171.3 million. Public sector financing from the local banking sector was up by 16.8%, and credit to the private sector rose by 5%.

It is expected in the report that GDP will show a growth of 0.9% in 2011, which will be partially fuelled by a strong recovery in tourism (in 2010 it was up by 5.2%).

According to “The Cayman Islands’ Annual Economic Report 2010”, the Cayman Islands’ government can anticipate a robust performance in the financial services industry.