André Ebanks, Cayman Islands Premier and Minister for Financial Services and Commerce, speaking at a Cayman Finance industry roundtable in London in September.
- Foreign direct investment from the Cayman Islands to the UK rose 142% year-on-year, from £41.0bn to £99.3bn, according to recently released ONS figures
- Cayman is now the seventh largest source of inward FDI, accounting for 4.7% of the UK total, in a year when overall inward investment fell
- CIMA figures show portfolio investment in the UK by Cayman funds more than tripled to US$733bn in 2024, while the net assets of Cayman funds run by UK-based managers rose 5.5% to US$653bn
- Investors’ holdings in Cayman funds are reported to tax authorities in more than 120 countries under the OECD’s CRS, including HMRC in the UK. Cayman transmitted CRS data on 1,640,000 accounts, covering balances, investments, shareholdings, and identifying taxpayer details in 2024
- Cayman complies with FATF anti-money laundering recommendations supporting its role as a trusted jurisdiction for investment
Cayman funds and investment structures are bringing almost £100 billion (US$130 billion) into the United Kingdom, after investment more than doubled in a year, according to Cayman Finance analysis of recently released figures from the Office for National Statistics (ONS) and the Cayman Islands Monetary Authority (CIMA).
Foreign direct investment (FDI) from Cayman to the UK stood at £99.3bn at the end of 2024, making Cayman the seventh largest source of inward FDI. The total was £58.3 billion, or 142%, higher than a year earlier. The Cayman Islands now accounts for 4.7% of all inward FDI in the UK, up from 1.9% at the end of 2023. The growth came in a year when inward investment in the UK fell overall, with the total inward FDI position declining by £75.4 billion to £2,127.6 billion.
| Cayman investment in the UK | End-2023 | End-2024 | Change |
| FDI | £41.0bn | £99.3bn | +142% |
| Share of total UK inward FDI | 1.9% | 4.7% | +2.8pts |
Sources: ONS; Department for Business and Trade, Cayman Islands trade and investment factsheet
The scale of the increase is significant in the context of the wider UK economy. UK real GDP grew by 1.1% in 2024, an expansion of roughly £28 billion in real terms. The £58.3 billion rise in Cayman investment over the same period was more than double that figure.
The direct investment figures are matched by growth in portfolio flows and Cayman funds investing directly in UK financial assets. Data obtained from the Cayman Islands Monetary Authority (CIMA) shows that Cayman funds held US$733 billion of UK portfolio assets at the end of 2024, up from US$217 billion a year earlier. The total included US$479 billion of UK equities and US$238 billion of long-term debt securities.
Samantha Widmer, Director and Head of Funds & Capital Markets, Cayman Finance, said: “At a time when attracting investment is a priority for the United Kingdom, the latest ONS data highlights Cayman’s positive contribution to its economy. While overall inward investment fell, investment from Cayman more than doubled to £99.3 billion, making Cayman one of the UK’s largest sources of foreign direct investment. That capital is supporting UK businesses, infrastructure and financial markets.
“UK-based managers also increased the net assets they oversee through Cayman funds by 5.5% last year. These figures show Cayman’s success and the UK’s growth ambitions are increasingly aligned. Cayman provides a trusted, internationally recognised platform for global investment, and the UK continues to benefit from the capital, expertise and opportunities this relationship creates.”
Cayman is the world’s largest tax-neutral fund domicile. It is home to more than 31,000 institutional investment funds, such as hedge funds, private equity funds and venture capital funds. Cayman funds managed US$16 trillion in total assets at the end of 2024, with a net asset value of US$9.2 trillion. UK-based portfolio managers regularly use Cayman funds for international investments. Investment managers in the UK ran 1,014 Cayman funds with net assets of US$653 billion at the end of 2024, up 5.5% on the previous year.
Cayman’s tax neutral status allows funds to pool capital from institutional investors around the world, including pension funds, sovereign wealth funds and insurers, and allocate it to companies and infrastructure in markets such as the UK. Institutional asset managers register funds in Cayman for several reasons, including the ecosystem of qualified, experienced and regulated service providers which has evolved to support them.
The benefit of tax neutrality is that the income is not taxed in multiple countries, and complex double taxation treaties do not need to be applied. Investors in Cayman funds remain fully liable to pay tax on investment income and capital gains in their home jurisdictions, and holdings are reported directly to the domestic tax authorities of more than 120 countries signed up under the OECD’s Common Reporting Standard. In 2024, Cayman transmitted CRS data on 1,640,000 accounts, covering balances, investments, shareholdings, and identifying taxpayer details.
| Cayman funds and the UK (CIMA) | 2023 | 2024 | Change |
| Portfolio assets held in the UK | US$217bn | US$733bn | +238% |
| Net assets of funds run by UK-based managers | US$619bn | US$653bn | +5.5% |
Source: CIMA Investments Statistical Digest
Widmer and Steve McIntosh, CEO of Cayman Finance visited the UK in September as part of a Cayman Islands delegation that included Premier of the Cayman Islands and Minister for Financial Services and Commerce, André Ebanks and representatives from CIMA to meet investment managers, distributors, and legal advisers. The visit is part of Cayman Finance’s ongoing engagement with UK investment professionals and will provide insight into developments affecting Cayman’s funds and investment structures.
