Demand in the offshore industry
Over the last twenty years increasing client demand for offshore facilities has not only resulted in an ever-growing number of International Financial Services Centres ("IFSC") but also in more competition amongst the existing centres.
The political and economic catalysts that influenced the growth of the offshore industry in the 1980s and 1990s will continue to influence growth in the next two decades.
These catalysts are:
- Political and economic instability
- Market globalization and deregulation
- The lifting of trade barriers
- Trends towards steady global economic growth
- A global relaxation of foreign exchange controls
In addition to political and economic catalysts, there are also specifically global tax related catalysts that continue to influence the growth of the offshore industry.
These include:
- High tax regimes
- More effective tax recovery
- The opportunities of utilising double tax treaties