Isle of Man is set to see a positive economic growth of 3 to 4% within 2014, according to the director of the island’s financial services.
"If maintaining this growth in 2014/2015, the Island’s economy will have grown for 32 years in succession," John Spellman, director of financial services for the Isle of Man Department of Economic Development exclusively told PBI.
The new government report ,’Vision 2020′, forecasts that Isle of Man’s economy can grow by 3 to 4% every year to 2020, with the e-Business sector being a key source of growth.
According to the report, Isle of Man will continue the move from traditional offshore to inpatriate and expatriate markets for the mass affluent, corporate and HNWIs.
"This will result in fewer, but higher value customers with a higher expectation of service and product needs," the report says.Isle of Man has 34% of its economy in financial services activities and that’s the primary source of wealth of its HNWIs. Spellman said 2/3 of Isle of Man’s assets are from non-Europeans, and mainly Middle Eastern families who are increasingly seeking for family offices advice.
"In the Isle of Man we want to guarantee a future niche in the market for international clients who need a safe, transparent and secure haven for their wealth," Spellman added.
In a recent briefing in London, Spellman revealed that the government is working on further legislation to embrace more private banking activity on the island with initiatives to enhance consumer protection and information exchange.
"HNWIs are becoming more difficult to serve as their needs increase in sophistication, especially now that high profile investors have lost confidence in where to place their wealth" he said.
As for HNWI business outlook for 2014, Spellman said wealthy investors will continue to create their own portfolio assets investing directly into businesses and established companies. HNWI will also keep on joining into venture businesses, following the traditional example of US investors.
Spellman also sees a lot of foreign investments from HNWIs for the next months, looking positively on emerging market’s equities, namely South America.