3 minute read
The Isle of Man
AN ISLAND FOR ENTERPRISE
Located in the middle of the Irish Sea, almost equidistant between England, Ireland, Scotland and Wales, the Isle of Man is a unique self-governing kingdom, a Crown Dependency that belongs to neither the United Kingdom nor the European Union.
Tynwald, the Isle of Man’s own parliament, was founded more than 1,000 years ago and is recognised as the oldest continuous parliament in the World. The ministerial system of the Isle of Man Government is led by the Isle of Man’s Chief Minister and acts by consensus in the relative absence of party politics.
The Isle of Man strives to be a model of political stability, democracy and transparency, with a strong track record of complying with global standards. To support this goal, the Department for Enterprise oversees the economic development and creation of an environment where local entrepreneurship is supported and thriving, and where more new businesses choose call their home.
The Department is responsible for four Executive Agencies made up of private/ public sector partnerships to promote and develop key sectors and deliver long term, sustainable economic growth for the Isle of Man: Digital Isle of Man, Finance Isle of Man, Business Isle of Man and Visit Isle of Man. Collectively, the functions work hand in hand with the private sector, growing real businesses, generating real jobs and real opportunities for the Island.
In addition to this clear commitment to maintaining the Islands vibrant business centre, there is a real commitment to celebrate and maintain the Island’s natural landscape. Encompassing 95 miles of unspoilt coastline and 169 miles of public footpaths, the Isle of Man is proud to have been named the only entire nation in the World to be awarded UNESCO Biosphere status, making it a truly unique location to both live and work.
Over the years, the Isle of Man economy has proven to be diversified, fast growing and adaptive.
By the 1970s and 80s, package tourism to Europe had rendered much of the Island’s tourism offering obsolete and it was at this point that the Isle of Man Government began using freedom over corporate and taxation laws to grow a new economic sector which would irrevocably shape the Island. The Finance sector emerged in earnest in the 1980s and 1990s, and by 1995 was in its heyday. International banks, Corporate Service Providers (‘CSPs’), Trust businesses and Insurers took advantage of the regulatory and taxation regime designed by the Isle of Man Government and brought new export-led wealth and jobs to the Island. Development projects and the property market took off, and an increased number of people from around the world chose to make the Isle of Man their home.
As a result of this diversification, the Island has experienced phenomenal growth. Apart from 2015/16, the Island’s economy had grown every year since the mid-1980s, an astonishing record given the severe shocks to the global economy in the 1990s and during the 2008 financial crisis. That the Island was able to see out the global financial crisis without entering a recession is testament to the successful strategy of diversifying export and domestic markets and being able to take advantage of mobile sources of wealth.
Although the Island weathered the worst of the financial crisis in the shortterm, structural changes to international finance were underway and the Island began to lose some of its competitive advantage in offshore banking. By this stage, however, the Island had successfully launched a new economic sector, eGaming, which would have a profound impact in the economy. By leveraging existing skillsets and regulatory advantages, the Island was able to rebrand as a centre for innovative technology and global leaders.
The Island today is both very different, yet in some ways very similar. The two largest economic sectors, eGaming and Insurance, are the product of seeds planted in the 1980s and 1990s. But they are combined with global economic developments in the medicinal cannabis and eSport sectors of which the Island has positioned itself well to take advantage of.
Looking to a post-COVID world, the Island’s economy is well placed to continue to grow, with investment taking place in high-tech digital infrastructure and green initiatives that will see the Island well-connected, sustainable and prosperous in the many years to come.
