Offshore centres are poised to benefit from the enormous growth
forecast in Islamic finance over the next few years, says
Ogier's Head of Banking and Finance in Asia.
Anthony Oakes, who leads the banking and finance team in the
firm's BVI and Cayman-focused Hong Kong office, says that the
combination of increasing appetite for Islamic finance products,
new variations on existing products and an increased interest in
the role of offshore centres in Islamic finance point to a
developing area with huge potential.
Research by the International Shar'iah Research Academy for
Islamic Finance estimated the total value of global Islamic finance
at around $900 billion in 2009 – that figure had reached $2.4
trillion by 2015, with forecasts reaching $3.4 trillion in 2018 and
$5 trillion by 2020.
Anthony, who published a chapter on Islamic finance in the
Cayman Islands in a recent industry publication, said: "The
traditional market in the Middle East remains strong, but we are
also seeing growth in Asia, Malaysia and Indonesia.
"At the same time, the industry is developing new products
– we are seeing more Shariah compliant retail and corporate
banking and trade finance products coming online.
"A further interesting development is happening in
non-Islamic countries, where access to Islamic capital markets is
being sought – a good example is the sukuks issued by the
Hong Kong government in 2014 and 2015.
"Offshore centres, and particularly Cayman, are
well-positioned to take advantage of this growing area because of
their flexibility and efficiency, and because their underlying
legal systems are based on the trusted, well-established and
familiar English legal framework."
Anthony was named one of the top ten offshore lawyers in Asia by
Asian Legal Business in its Offshore Client Choice List 2016 and
recently wrote the chapter on the Cayman Islands in The Islamic
Finance and Markets Review.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
Jersey's Royal Court has ruled that a house and land in St Helier which were left in a will to a UK body with charitable status (the "Charity") which could not take ownership of them could pass to a company...
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).