George Town, Grand Cayman, Cayman Islands (PRWEB) December 22, 2014
Cayman Enterprise City, Cayman’s knowledge-based special economic zone, has contributed an estimated CI$ 20.1 million to Cayman’s economy during the 12 month period ending September 2014. During this period the number of companies operating from within the special economic zone has increased from 60 to 110. CEC commissioned an analysis of the zone’s impact and as a direct result of the zone’s growth, it is estimated that CI$ 14.28 million has been spent in the local economy. This direct impact is inclusive of estimated set-up and maintenance costs for each existing special economic zone company (including attorney fees, annual registered office fees, incorporation and annual registration fees paid to the CI Government, etc.), monies spent by special economic zone companies on fit-outs of their respective office spaces and monies spent by tenants of the special economic zone on purchases of real estate (inclusive of stamp duty monies paid to the CI Government; established purchases only).
CEC also estimates an indirect impact of about CI$ 5.83 million which includes monies conservatively estimated to have been spent by the special economic zone company employees and is based on the number of persons employed by SEZ companies as at 30th September 2014 (adjusted to account for the attrition and each individual employee’s actual start date), their estimated average salary, based on industry specific salary benchmarks for the US and Canada and an assumption that such Zone Employment Certificate holders spend an average of 50% of their salary within the local economy.
“We have seen significant growth and a significant economic impact – exponentially growing from last year – and we expect that to continue into the future,” says Cayman Enterprise City CEO Charlie Kirkconnell.
CEC estimated that the economic impact of the zone from its launch in February 2012 through September 2013 was CI$ 12.6 million. The new figures therefore bring the total impact of the special economic zone on Cayman’s economy to CI$ 32.8 million. CEC also continues to refer business to 120 local services providers creating significant business opportunities for local non-zone companies.
CEC itself projects to add another CI$ 300 million to the local economy over the next 8 years with construction of its new 850,000-square-foot campus. A 50-acre site has been acquired and the developers project to break ground in early 2015. Until the campus is completed, zone companies are housed in four zone buildings in George Town. Cayman Enterprise City now also includes two tier 3 data centres through CEC’s partnership with Brac Informatics Centre. These data centres have been designated as part of the special economic zone and offer tenants the opportunity to co-locate servers and make managed services available for zone tenant’s use.
Cayman Enterprise City is designed for companies in specific industries: Internet and technology, media, commodities and derivatives and biotechnology. Entrepreneurs can launch a startup, or companies can expand operations overseas by setting up a branch in the zone to take advantage of Cayman’s jurisdictional benefits, along with a host of concessions granted by the Cayman Islands Government. A number of flexible licensing packages are available and CEC offers full service corporate relocation services that include fast-tracking applications.
124 companies from 18 different countries are now set up in the zone, conducting business and generating tax-exempt active income in the Cayman Islands, with another 14 companies signed up and preparing to enter the zone at various times over the next 3 months. About 65 percent are from North America and most are internet and technology companies.
Mr. Kirkconnell is satisfied with the number of companies CEC has attracted so far but recognizes that there is always room for improvement.
“We are very excited by the success of the zone over the last 12. As is the case with every business person, I would like to see us further ahead than where we are, but will close the year strongly and build upon our success so far in 2015.
About Cayman Enterprise City
Cayman Enterprise City is a Special Economic Zone in the Cayman Islands focused on knowledge-based industries, technology companies and specialized services businesses. With a dedicated Government Authority and guaranteed fast-track processes, International companies can quickly and efficiently establish a genuine physical presence in Cayman. Businesses can take advantage of Cayman’s jurisdictional benefits which include zero corporate tax, zero income tax and zero capital gains tax, along with a raft of special zone concessions and incentives. These concessions were designed to attract international companies from five specific high-tech sectors; internet and technology, media and new-media ventures, biotechnology, commodities and derivatives, and academia.
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