Cayman Islands – Overview:
The Cayman Islands is a United Kingdom Overseas Territory located in the northwestern region of the Caribbean Sea and comprises three Islands: Grand Cayman – the largest, where the majority of residents live -- Cayman Brac and Little Cayman. The official language is English, and of the more than 40,000 residents, 50 per cent are foreign nationals. They hail from various countries including Jamaica, Cuba, Honduras, United States, Canada and the UK.

A parliamentary democracy since 1831, Cayman is, to a large degree, self-governed through its democratically elected Legislative Assembly. Elections are held every four years when the terms of all Members of the Legislative Assembly (MLAs) expire. Following every election, the MLAs select from amongst themselves by ballot, five members to serve on Cabinet and assume responsibility for Government Ministries. In addition to the five Government Ministers, Cabinet also includes three ex-officio appointees who are responsible for three Portfolios of government administration.

The Cayman Islands is known for its stable macroeconomic environment. Its integration into the global economy coupled with dynamic growth in its two main economic sectors -- financial services and tourism – have delivered a high standard of living for the average Caymanian citizen. GDP per capita was estimated at CI$36,529 in 2004 and the rate of inflation was 4.4 per cent.

In addition, a high literacy rate, low unemployment and relative low rate of inflation have facilitated the development of modern infrastructure, including high quality telecommunications and transportation systems, education and healthcare programmes.

Economy
Since the 1960s, the Cayman Islands has successfully invested its “historic capital” – English common law and tax neutrality (both dating back to the time of the first settlement in the 1700s) – in the development of its financial services sector for which it is internationally recognised. Over the past 15 years in particular, the Cayman Islands has focused on building world-class specialisation in institutional business and developing strong international cooperation arrangements with the US and other countries. Today, the Cayman Islands financial services industry encompasses banking, funds and investments, captive insurance, vessel registration, companies and partnerships, trusts, structured finance and the Cayman Islands Stock Exchange (CSX).

The tourism sector is the other economic pillar of the Cayman Islands attracting more than two million visitors a year. With an estimated contribution of 50 per cent to GDP and 27 per cent to employment, tourism is a key driver to economic growth in the Cayman Islands. Tourists spend more than CI$900 million a year, CI$30.7 million of which accrue to the Government and related statutory authorities.

Infrstructure
The Cayman Islands maintain excellent infrastructure in transportation, utilities, telecommunications and postal services. The main airport, Owen Roberts International, handles close to 1,000,000 international and domestic passengers each year. The national flag carrier, Cayman Airways, services destinations in the U.S. and Caribbean and provides domestic service. International carriers serving the Cayman Islands include American Airlines, US Airways, Delta, Northwest, Continental, Air Jamaica, Air Canada and British Airways.

The Port of George Town is operated by the Port Authority and mainly consists of cruise ships (approximately 75 per cent) followed by cargo (20 per cent) and tankers (3 per cent). Electricity and water are provided throughout the islands by a private sector and government owned sources. Cayman’s telecommunications have been recognised as being some of the best developed and strongest in the Caribbean.

Investment
The Cayman Islands Investment Bureau (CIIB) is charged with facilitating and securing appropriate long-term inward and local investment in the Cayman Islands, in partnership with government agencies and the private sector. The CIIB provides a broad range of consultation, liaison and coordination services, geared towards foreign and local investors. The CIIB also provides information on investing in key business sectors in the Cayman Islands, as well as information on the country’s investment climate and related laws and regulations. As an investment intermediary, the bureau can assist in setting up a new business. It can also assist potential investors by introducing them to local industry, government and other service providers.