News

A landmark new report has highlighted the role that Guernsey plays in powering the UK’s economy, once again emphasising Guernsey’s position as a growth engine that continues to punch well above its weight.

A new Frontier Economics report, “The Value of Guernsey’s Funds Industry to the UK’s Growth Ambitions”, has revealed that Guernsey-based funds are responsible for directing £58 billion into the UK every year. In turn, these investments are estimated to deliver £300 million per year to UK GDP, sustaining over 7,000 jobs nationwide. Thanks to its unique regulatory environment, Guernsey continues to attract international firms interested in investing in the UK, with more than 90 percent of Guernsey-based funds sourced from overseas.

In other words, thanks to its pro-business regulatory environment, Guernsey serves as an ideal base of operations for companies looking to invest in Britain. The report highlighted that Guernsey-to-UK investment is drawn from 63 countries, with a growing share from Asia-Pacific and Africa. Guernsey also boasts The International Stock Exchange (TISE), a regulated listing venue for alternative asset securities, which attracts business from over 35 countries. The report notes that, over a 10-year lifetime, establishing a fund in Guernsey rather than Luxembourg has the potential to save investors 2-3 million euros (£1.7-2.6 million, $2.3-3.5 million).

And beyond commercial competitiveness, Guernsey is also recognised for its contributions to projects which deliver social and economic benefits to local communities. Examples highlighted in the report include wind farms on the UK’s North Sea coast, high-speed broadband, and student accommodation across major UK university towns.

For Commonwealth businesses in particular, Guernsey remains a ‘super-connector’, providing an ideal conduit for firms interested in investing in the UK, but who have bespoke regulatory needs. Its tax-neutral status, political stability, and strong legal framework provide the ideal conditions for international businesses.

CWEIC is proud to continue its Strategic Partnership with the States of Guernsey, helping to connect this internationally-respected financial services hub with the Commonwealth.