Sovereign wealth fund could start in 2028

There is broad parliamentary support for a quick start to a fund that could tap “revenue streams that we haven’t touched yet.”

Cayman could have a sovereign wealth fund by January 2028. The potential start date emerged as a government motion to explore a Cayman sovereign wealth fund received unanimous parliamentary approval on 5 Oct.

Deputy Leader of the Opposition Kenneth Bryan urged the government to move promptly with the fund. “We look forward to getting this developed quickly so we can start applying the necessary funds to it by the next budget,” he said.

Premier and Minister for Financial Services and Commerce André Ebanks, who noted that government would need to find “the relevant expertise” before starting the fund, agreed that Bryan’s suggested timeline of January 2028 was feasible.

Ebanks said that if government could make a start, avoid having to reinvent the wheel and set aside a small amount in the 2028/29 budget that would not place undue pressure on public finances, the initiative could get underway.

Seed capital as low as $100,000 was mooted to establish the fund. But for it to become a significant driver of change in Cayman it would need larger sums invested over time.

When reports of the government’s sovereign wealth fund first appeared, some Compass readers questioned how it would be financed. Ebanks was keen to assuage Parliament that it doesn’t have to be funded by fee increases.

He said, “For anybody wondering, ‘Oh gosh, will they now increase fees or this and that?’ There are potential measures … where we don’t have to worry about the current revenue streams.”

Ebanks stressed that the fund could be backed by “revenue streams that we haven’t touched yet.”

Following the approval of the motion, the next step is to establish a cross-party working group to determine the structure and purpose of the fund. Bryan said the committee would need to return to Parliament with recommendations by October 2027, for any funding to be included in the 2028/2029 budget cycle.