Canadian enterprises had direct investments of $10 billion in Bermuda in 2003, according to a study released by the Canadian government yesterday.

The investments meant that Bermuda was the sixth most popular destination in the world for Canadian foreign direct investment and comes as the amount of money invested by Canadians in offshore financial centres increased eightfold between 1990 and 2003.

The study by Statistics Canada reported that the C$88 billion in Canadian investments in offshore financial centres accounted for one fifth of all overseas investment, double the proportion of 1990.

Of that investment, the largest growth in Canadian foreign direct investment (FDI) had occurred in Barbados, Ireland, Bermuda, the Cayman Islands the Bahamas.

Barbados was the third most popular place for Canadian FDI and the top offshore financial centre with $24 billion, Ireland was fourth and the second financial centre with $18.2 billion and Bermuda was sixth and the third most popular OFC with $10.8 billion.

The study noted that the level of FDI did not always reveal the final destination of the investments, saying: "For example, part of the investment directed towards OFCs, especially those in the Caribbean, is likely to be substantially reinvested in the United States."

The study also noted that OFCs were particularly popular for bank investments, insurance and investment services.