Cayman Islands Country Report
The Cayman Islands is a British overseas territory that provides foreign investors with an attractive fiscal regime and one of the highest standards of living in the world, although local politics is becoming increasingly fragmented. Foreign investment is likely to continue into the financial services, tourism, and offshore sectors – mainly determined by international tax planning. Operational risks are low although some complications stem from the prospect of being hit by severe storms in the hurricane season between August and October. Crime rates, including gun crime, are low and the islands are safe compared with other Anglophone jurisdictions in the Caribbean. IHS Markit expects a 2.4% growth rate in 2018.
The operational environment is good. Local infrastructure is modern and extensive, notably in the telecommunication sectors. The provision of utilities services is reliable. Corruption levels are not significantly high, though there is still capacity to promote transparency and accountability within state institutions, including the police. Bureaucratic procedures do not represent a major challenge to the private sector and authorities are committed to fostering a positive business environment at all levels. The islands have a well-educated workforce and labour-related risks are low. Natural hazards may hit the islands but, overall, the government's level of preparedness is adequate.
There is no specific terrorist threat targeting the Cayman Islands assets from domestic or home-grown groups or targeting Western interests such as bars, nightclubs, shops, restaurants, or other places where expats and tourists may gather.
As a British Overseas territory, the Cayman Islands' foreign affairs and defence policy remain the responsibility of the UK government. Overall, there are no significant external threats to the island and interstate war risks are low.
There are no significant trade unions in the Cayman Islands, so strike action is virtually non-existent. Any future incidents of industrial action would be quickly resolved and would not pose property damage risks. In October 2015, environmental activists held protests to oppose a new cruise berthing facility in Georgetown, and future tourism projects could be subject to similar protests if they are perceived to have an adverse effect on the natural environment. Other protest groups have staged demonstrations in the past to demand lower petrol prices.