Competitiveness Strategies
for Small States
Islands and Small States Institute
Commonwealth Training Workshop
Malta, June 2013
Agenda
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Overview: The Cayman Islands
Department of Commerce and Investment
Competitive Advantages
Investment Promotions – Strategy / Incentives
Opportunities for diversification
Current Projects / Goals
Most recent success stories
Areas for Improvement
Overview: The Cayman Islands
General Overview
The Cayman Islands is a British Overseas
Territory located in the Caribbean, with ready
access to markets in the Americas and the UK.
We’re a preferred jurisdiction for the structuring
and domiciling of sophisticated financial services
products because of our solid credentials, based
on our three core tenets of integrity, stability and
quality.
Our integrity results in a strong commitment to a
responsible and responsive business
environment.
Cayman’s stability is grounded in the fact that
we’re a mature, well-established provider of
global financial services.
And the quality of our service offerings lies in
the depth and breadth of experience available.
M iami, Fl.
Gulf of M exico
Cuba
Cayman Islands
Overview: Cayman Islands Stats
THE CAYMAN ISLANDS AT A GLANCE
SURFACE AREA
CAYMAN
ISLANDS
GRAND
CAYMAN
CAYMAN
BRAC
LITTLE
CAYMAN
Land (sq. miles)
Inland Waters (sq. miles)
Islands Total (sq. miles)
93.0
9.0
102.0
69.4
6.6
76.0
14.9
0.1
15.0
8.7
2.3
11.0
Islands Total (sq. kilometers)
264.1
196.8
38.8
28.5
2007
2008
2009
2010
2011
56,005
(1.8)
11
55,036
(1.7)
56
11
55,517
0.9
56
11
3.1
3.4
EXCHANGE RATE: CI$1.00 = US$1.20
SOCIAL INDICATORS
Population - Year End
Growth Rate (%)
Proportion of Caymanians (%)
Student Staff Ratio (Reception to Secondary)
Doctors per 1,000 year end population
54,986
3.4
11
57,009
3.7
11
2.7
2.6
2.6
Economic Indicators
GDP at current basic prices ($M)
Real GDP Growth (%)
2007
2,637
4.3
2008
2,661
(0.4)
2009
2,510
(6.9)
2010
2,411
(3.4)
2011
2,469
1.1
Per Capita GDP1 at current basic prices ($)
Employed Labour Force
Unemployment Rate (%)
Consumer Price Index (June 2008=100)
Inflation Rate (%)
Merchandise Imports ($M)
Merchandise Exports ($M)
Total Recurrent Revenue - Central Gov't ($M)
Total Expenditure - Central Gov't ($M)
Currency in Circulation ($M)
CI Dollar Prime Lending Rate
48,744
35,081
3.8
96.2
2.9
860.0
17.9
513.0
552.0
81.9
8.0
47,528
37,450
4.0
100.1
4.1
879.4
12.4
522.2
653.3
83.7
4.9
44,552
35,958
6.0
98.6
(1.5)
735.9
16.0
470.6
620.0
87.4
3.3
43,560
34,983
6.2
98.9
0.3
688.3
11.1
515.7
578.2
85.2
3.3
44,657
35,267
6.3
100.2
1.3
762.0
18.1
549.9
622.1
89.7
3.3
All Bank & Trust Licences3
Mutual Funds
Company Registrations
Insurance Licences
Visitor Air Arrivals ('000)
Cruise Ship Arrivals ('000)
Value of Approved Developments ($M)
Property Transfers ($M)
Total fixed and mobile phone lines
419
9,413
87,109
793
291.5
1,715.7
505.1
545.5
0
419
9,870
93,693
805
302.9
1,553.1
508.8
558.1
0
404
9,523
92,867
807
272.0
1,520.4
434.2
397.0
0
371
9,438
91,206
768
288.3
1,597.8
330.5
307.2
137,242
358
9,258
92,664
766
309.1
1,401.5
251.5
632.1
132,349
Notes:
1 Per
capita GDP estimated using mid- year population figures.
2 Currency
in circulation plus demand deposits with commercial banks.
3 Excluding
Nominee Trust Licences
Overview: Department of Commerce &
Investment
• License and regulate local commercial activity within
specific industries
• Facilitates appropriate business investment
opportunities
• Encourages creation of local and international ventures
that generate income, employment, linkages and
domestic competitiveness in key areas.
Competitive Advantages
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Strong ethical business climate (good anti-corruption
legislation)
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No direct taxes (income, property, inheritance)
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Location & Accessibility
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Educated workforce
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Public-Private sector partnership
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High Standard of Living
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Full International Ownership
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No limitations on expatriation of profits
Strategy to Engage Investors
• Targeted growth sectors
• Partnerships with local private sector
• Reinforce positive business relationships
• Create awareness among potential investors
• Conduct market intelligence to assess
opportunities/threats in marketplace
Incentives for Investors
Financial Services Sector
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Expedited processing of key work permits
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Seven-year work permits for accredited professionals
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Key employee designation for senior staff
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Certificates of Substantial Business Presence
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Certificates of Direct Investment
Other incentives
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Waivers/Reduction on business licenses and fees for specific periods
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Waivers/Reduction on stamp duty on office rental space for specific periods
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Concessions on import duty on materials for tourism development and film projects
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Incentives are also granted on a case by case basis
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Cayman Brac and Little Cayman
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Up to 75% reduction on work permit fees for staff located in the Sister Islands
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50% reduction on Trade & Business License fees for businesses located in the Sister
Islands
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100% concession on building materials
Potential New Industries for Cayman
• Renewable Energy
• Environmental technologies
• Healthcare
• IT & Software
• Training & Education
• Creative industries
• Professional services
• Transportation & Logistics
Goals for 2013-14
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TRADE & BUSINESS LICENSING SERVICES
Goal: Processing of applications for Trade & Business Licences and Local Company (Control) Licences in
compliance with relevant laws.

RATIONALISE LICENSING FUNCTIONS ACROSS GOVERNMENT AGENCIES
Goal: To determine the extent to which the number of government agencies involved in the licensing of local
businesses can be reduced in order to reduce the burden of business owners to obtain annual permission for
operating approved businesses.

MIGRATION OF DCI TO ONLINE SERVICES
Goal: To enhance the business climate allowing 24/7 transactions with DCI

CONVERSION OF SEZA TO ELECTRONIC DOCUMENT STORAGE
Goal: Improve efficiencies regarding SEZA process

INTRODUCTION OF A BUSINESS NAME REGISTRY
Goal: To create a centralized database for the names of businesses operating in Cayman.
Goals for 2013-14
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ON-GOING REVIEW AND UPDATE OF COMMERCE LEGISLATION
Goal: The modernization of legislation concerning local commercial activity. Revisions to the current law are
almost complete, however, there is a need to run a dual system in order to transition into some of the more
advanced considerations of these revisions.
 ENFORCEMENT AND MONITORING ARM WITHIN DCI
Goal: To monitor and ensure that all local businesses are compliant with local and commerce-related laws. The
unit will investigate complaints and conduct on-site inspections as well as work to collect outstanding fees.
 DEVELOP A FAIR TRADE UNIT
Goal: Ensure a level playing field in local commercial activity that addresses concerns regarding unfair competition
and discriminatory pricing practices.
Goals for 2013-14
 FOREIGN DIRECT INVESTMENT LEAD GENERATION
Goal: To diversify investment interest in the Cayman Islands, by determining a framework and action
plans for new niche markets.
Activities:
•Support / drive investment in the mature sectors (Financial Services and Tourism) through image
building, lead generation and targeting, investor servicing and aftercare and policy activities;
•Target large foreign investors or special interest groups with large scale projects
•Facilitate discussion with government Depts/statutory bodies/boards and existing private sector
stakeholders
•Promote and enhance the image of the Cayman Islands through representation at both local and
overseas conferences and events;
•Develop, disseminate, and maintain collateral material on investing in the jurisdiction such as Projects
Catalogue and Investment Guides
Goals for 2013-14
 SECRETARIAT TO THE SPECIAL ECONOMIC ZONE AUTHORITY (“SEZA”)
Goal: To license all enterprises/companies who wish to operate within the Special Economic Zone (“SEZ”)
and service the SEZA in the fulfillment of its role in regulating activity in special economic zones on behalf of
the government.
 BUSINESS AFTERCARE PROGRAMME
Goal: To support investment efforts in the mature sectors (Financial Services and Tourism) and new niche
markets through reactive and proactive management of existing investors.
Activities:
•Create and maintain an investor information wiki which contains details on the jurisdiction to respond
effectively to investors;
•Assist with the investment approval and business establishment procedures including regulatory compliance
(handholding);
•Proactively assist companies to grow their local presence by keeping in contact, ensure that workflow
between government and investor is efficient and effective, obtain feedback from investor on ways to enhance
experience and forward to the appropriate party, gain investor trust.
Goals for 2013-14

COMPETITIVE BENCHMARKING
Goal: To benchmark the factors that affect investor selection of the Cayman Islands versus other competing
jurisdictions, focusing on products & services, tax policy, government fees & incentives, and marketing &
branding programmes.
Activities :
•Conduct market research and benchmark exercises to be used by members of the Investment Promotion
team
•Compile data for Cayman’s inclusion in the key benchmarking publications such as “The Cost of Doing
Business”
•Research the local sectors to identify opportunities for investors and local entrepreneurs
•Monitor all information on the jurisdiction and stay abreast of new developments
•Conduct quality research to determine our competiveness in the marketplace
Goals for 2013-14
 HOSTING OF LOCAL SMALL BUSINESS CONFERENCES
Goal: Organise a small business expo to coincide with World Entrepreneurs’ Day in April 2014 to give
micro / small businesses a platform for business to business and consumer awareness / activities.
 PROVISION OF TECHNICAL ASSISTANCE TO SMALL BUSINESSES
Goal: To provide technical assistance to entrepreneurs and small business owners in the Cayman
Islands.
 SUPPORT THE FILM COMMISSION
Goal: To establish The Cayman Islands as the premier Caribbean film location and production center
within the international film / advertising industry.
Success Stories
Success Stories (cont’d)
Areas for Improvement & Reform
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Attracting and retaining staff critical to the execution of the departments
objectives
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Budget constraints
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Inter-Agency support
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Copyrights / Patents Laws
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Cayman is not party to regional cooperation initiatives such as CARICOM
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More policies to encourage trade - cost of doing business
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Cabinet support
How do we ensure success?
By achieving good GRADES
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Government responsiveness
• Resource acquisition (human / capital)
• Appropriate legal, regulatory and institutional framework
• Diversification / New markets
• Educated Workforce
• Stable business environment / ability to respond to changes
Satisfied investors become our best champions because they
have first-hand experience of our business environment and can
speak from an informed point of view.
Conclusion
The Cayman Islands Government takes a serious approach to FDI as it
believes investment projects are critical to maintaining buoyancy and diversity
in Cayman’s economy. The country is keen to identify, attract, and retain FDI
in sectors and business activities that add high economic value. Projects
which provide local jobs, cause minimal impact on the natural environment,
and increase spending in the local economy are the most appropriate.
Targeted growth sectors include our economic pillars of tourism and financial
services, but other FDI that fits the above mentioned criteria will be welcomed
by the jurisdiction.
The country’s strategy is to partner with the local private sector and build
adequate synergies for efficient facilitation of FDI projects. Local policies are
reviewed on a regular basis with a view to making the Islands more business
friendly.
Contact Information
Ryan Rajkumarsingh
Acting Director
Department of Commerce & Investment
Cayman Islands Government
Suite 126, Government Administration Building
Grand Cayman KY1-9000, Cayman Islands
t: 345.945.0943
e: investcayman@gov.ky
Website: www.dci.gov.ky
Facebook: Invest Cayman