As critical catalysts of foreign direct investment (FDI) into both developed and developing economies, investment hubs play an essential role in the global economy. Yet they are threatened by shifting public perception and increasingly restrictive regulation.
While investment hubs are often dismissively referred to as tax havens, it is essential to distinguish between them. Undeniably, the fight against tax abuse through tax havens is crucial and justified. Painting investment hubs with the same brush, however, does a major disservice to developing countries that benefit from the FDI flows facilitated by these key intermediaries through the structuring of safe and secure investments into otherwise challenging destinations.