New report reveals growing economic impact of Cayman’s financial services industry

Early findings from a Cayman Finance-commissioned research paper published on 19 Sept. show the expanding financial services industry has a larger role in islands’ economy than previously calculated.

The latest report, which was undertaken by respected UK-based consultancy Capital Economics, estimates the sector accounted for 44% of the islands’ economy in 2023 and 45% of government revenue in 2024. That’s higher than previous estimates of 40.2% and 42%, respectively.

The higher numbers reflect the steady growth of the financial services industry in Cayman. Cayman Islands Monetary Authority (CIMA) data shows substantial expansion in the funds sector, with private fund registrations increasing by 39% and mutual fund registrations by approximately 10% since 2020. In insurance, CIMA granted a total of 21 new international licenses in the first half of 2025 alone, as commercial insurance, reinsurance and captive sectors continue to expand.

According to the survey, which was completed by Capital Economics analysts that visited Cayman, financial services generated $2.5 billion of economic activity in 2023, accounting for 44% of the territory’s GDP that year.

That’s the direct impact, but once researchers included money spent by financial service firms and workers in the Cayman Islands – the indirect and induced impacts – then the sector accounted for 62% of the total economy in 2023.

Generating government revenues

The financial services also play a greater role in propping up government finances than previously calculated.

According to the report, the sector generated $510 million in direct government revenues in 2024. That accounted for 45% of the total, compared with 42% in 2022. The previous government’s decision to increase financial fees, which took effect in January 2025, means the industry’s direct fiscal contribution may increase further in the future.

Again, if indirect effects, such as activity produced in other sectors, are included, the industry’s share of government revenue increases to 65% of the total with $734 million.
“These findings show that financial services do even more for Cayman than many realised,” said Steve McIntosh, CEO of Cayman Finance, which commissioned the research.

The finance sector’s contribution to the islands’ economy and tax revenue is well understood by most Caymanians. But one of the more surprising facts to emerge from the report was that finance sector workers in the islands are mostly female and Caymanian.

According to the analysis, 54% of the sector’s 6,724 jobs are held by Caymanians. That compares favourably to other important sectors such as construction and tourism, where the proportion is just 29% and 17% respectively.

Meanwhile 60% of finance sector workers in the jurisdiction are female. “The financial services industry is not just the largest driver of government revenue and economic output, but also an engine of opportunity for Caymanians, especially women,” said McIntosh.