Each year the island’s investment funds sector channels more than £50bn from global investors directly into development and infrastructure in UK cities, according to a new report which highlights the ‘vital role’ played by the Channel Islands in strengthening the UK’s economic resilience and global competitiveness has been highlighted by a new report.
The report comes from TheCityUK, the industry organisation that aims to promote the financial services industry in the UK, as long-term partner Guernsey Finance looks to do for the island in external markets.
It has been pulled together and published in partnership with Jersey Finance and Guernsey Finance.
It highlights the distinct yet complementary strengths each island brings to the British family of financial centres across funds, private wealth, corporate services, insurance and cross-border investment, underpinned by deep expertise and consistently high regulatory standards.
‘There is a fantastic set of stories here to tell,’ said Miles Celic, the long-serving chief executive of TheCityUK.
‘Investment in social housing, food tech – and one of my favourite stats about Guernsey is that 40% of the cranes operating in the UK are financed through here – these are all fundamental real examples of the difference that is made to the UK at a national, regional and community level that’s made possible by what’s happening in Guernsey.’
He described the islands as ‘a really exciting part of the British family’, with a lot of innovation and competitiveness.
‘One of things here that doesn’t get fully appreciated is the scale. £1tn-worth of investment sits here in Guernsey, an enormous amount of money for island of 25 sq. miles, and it acts as an important conduit and partner to British cities.
‘The international capital flows that go through Guernsey into the UK is an enormous sum, equivalent to the UK defence budget or the economic output of Glasgow and Edinburgh, and that is a massive advantage for the UK.’
TheCityUK said that ‘as long-standing partners of the United Kingdom and key parts of the wider British family, the islands form a highly specialised network of international finance centres that channels significant global capital into key areas of the UK economy – including infrastructure, housing, digital connectivity and sustainable technologies.’
It described both islands as mature and well-regulated, offering investors confidence, transparency and stability to deploy capital in the UK.
‘Together, they amplify the UK’s global financial reach – funnelling investment into communities, supporting businesses, and helping people to save for the future, buy a home, invest and manage risk.’
The report highlighted that more than 70% of direct foreign investment through Guernsey investment funds went direct to the UK in 2023, with Guernsey funds channelling £58bn of international capital into the country.
The local captive insurance sector supports four out of 10 of the companies in the FTSE 100.