The Financial Services sector also came to prominence over the years
The financial services sector in Mauritius has a rich history dating back to the 17th century when the island was used as a regional payments and settlements hub by traders.
Following the economic liberalisation in India in 1991 and the creation of the Mauritius Offshore Business Activities Act (MOBAA) in Mauritius in 1992, there was a rise of activities in the Mauritius Offshore Sector.
In 1994, the Government abolished the foreign exchange control by suspending the Foreign Exchange Control Act in order to enable free repatriation of capital.
Later in 1996, a deemed foreign tax credit was conceived as a simple and practical approach to the domestic fiscal treatment of foreign investment returns.
In the 2000s, Mauritius embarked on a transformation period with the view of establishing a more stable and reputable financial centre. In 2001, the MOBAA was repealed and replaced by the Financial Services Development Act. Subsequently, in the same year, the Financial Services Commission (FSC) was set up to replace MOBAA, to regulate and supervise all non-banking financial services, and the Financial Services Promotion Authority (FSPA) was instituted to promote the non-banking financial services sector.
In 2007, the Financial Services Act was adopted and refined in 2010. It simplified the regulatory regime of the global business sector by distinguishing between Mauritian companies conducting business in Mauritius (domestic companies) and those conducting business outside Mauritius.
In 2015, the Ministry of Financial Services, Good Governance and Institutional Reforms was created and the Government has since then embarked on a strategy to further graduate Mauritius as a full-fledged International Financial Centre.