Mark Twain hailed the Republic of Mauritius, and Bermuda, as two of the most beautiful places on earth. Surrounded by coral reefs and set in azure seas, the physical setting of the two islands is similar – and the commonalities do not end there. Bermuda and Mauritius share similar historical and political pasts and enjoy the potential to share a similarly prosperous economic future.

Like Bermuda has already done, Mauritius is establishing itself as a leading jurisdiction for the conduct of international business. Whereas Bermuda is one of the world's top centres for insurance and reinsurance business, a forward-thinking Mauritian government has been busy signing tax treaties with more than 30 jurisdictions worldwide.

The most influential of them is a double taxation treaty with India, the result of which is that Mauritius now accounts for more direct investment into India than any other country. In addition, Mauritius is becoming an active conduit for inbound investment into China and the African continent. There are now more than 30,000 global business companies set up on the island, and more than 400 investment funds, with assets totaling in excess of $43 billion (US).

Mauritius is increasing its stake in the global economy and although investment fund vehicles currently lead this increase, the Indian Ocean island is well-placed and capable of providing many of the same financial products and services that 'offshore' jurisdictions can. Aided by its political stability and close ties with both the African continent and the Indian sub-continent, Mauritius – with its pro-international business regulators – is poised to become a huge player in the global economy.

Both Bermuda and Mauritius have developed responsible legal and regulatory frameworks together with anti-money laundering standards. These frameworks assist each island in their respective bids to attract international investors seeking to streamline their global operations. Both islands have drawn upon established and proven laws from around the globe, molding them into responsive and responsible legislation best suited for each jurisdiction.

Mauritius has a delicately balanced hybrid legal system, partly based in the French Napoleonic Code – Mauritius was under French rule and used to be called Île de France until the French ceded it to the British in 1814, following a successful British military campaign – common law and statutory legislation. The Companies Act 2001 of Mauritius and other commercial legislation has been specifically drafted to encourage the use of the Republic by international investors.

Bermuda, likewise, has a long history of comparative legal systems, but the result has been a more streamlined development process and system. Less 'friction' occurs as Bermuda's current legislation does not have to be read in the context of an existing, and in some cases voluminous, civil code.

However, as an added comfort to international investors, both islands have access to the United Kingdom's Privy Council as their highest court of appeal.

Bermuda has enjoyed relative prosperity for nearly three decades and continues to be one of the leading offshore jurisdictions. Mauritius has flourished since independence more than four decades ago and is vying to take its place as another leading jurisdiction for international business. The biggest challenge for both is the uncertainty facing all facets of international business in the current global economic climate.

Each island, although similar in many ways, may need to respond to the current global economic situation in very different ways. This will depend on what place is open for them at the global table and what may be required of them in the process.

As American author Willa Sibert Cather once said: "There are some things you learn best in calm, and some in storm". It will be for each jurisdiction to chart its own course through these unsettled times, as even though both islands have weathered their fair share of storms in the past, both literally and figuratively, none so much as this one has the potential to change so much of their respective overall landscapes and the livelihoods of their people in the future.

Adrian Beasley, Chris Brough, and George N. H. Jones, are attorneys in the Corporate/Commercial Practice Group at Appleby. They have each spent a six-month secondment in Appleby's Mauritius office. A copy of this column can be found on the Appleby website at www.applebyglobal.com

This column should not be used as a substitute for professional legal advice. Before proceeding with any matters described herein, persons are advised to consult with a lawyer.