Bermuda and Islamic Finance: Meeting Market Challenges

Fawaz Elmalki • Posted 01/02/2011 • Under Articles

Islamic finance has significantly surpassed its niche industry status to become a growing component of the international financial system. As is the case for conventional finance transactions, investors, businesses and bankers involved in Islamic finance transactions seek jurisdictions which offer modern and effective legal regimes, tax neutrality, an independent location for international investors, accessible and pragmatic regulators and sophisticated service providers that are responsive, timely and thorough. As Islamic finance has grown over recent years and new structures have developed, offshore service providers have developed useful and efficient tools to facilitate Islamic finance transactions. In particular, companies, partnerships and trusts established in Bermuda have become commonplace in Islamic finance. Bermuda’s strength and its growing popularity in Islamic finance may be attributed to a number of factors.