gif Islamic Banking
ternational business environment make it attractiveto clients seeking to ensure that their assets are treated according to the rules they establish. “In this way, Bermuda’s business framework, which is well-known for being conducive to asset protection and tax efficiency, can be equally useful to ensure Shariah compliance.”
As Dye highlighted Bermuda clearly exhib- its: “its ability to adapt traditional structures such as insurance companies and trusts with purpose-specific laws and regulations” and this “makes Bermuda an attractive ju- risdiction for new financial structures, such as those used in Islamic financing.”
In addition in terms of wealth management and trusts Bermuda offers various types of trust structures which can be personalised to accommodate varying personal estate planning objectives. Bermuda trusts have the ability to offer a Shariah compliant tax- efficient global solution whereby assets are legally entrusted to a politically stable envi- ronment.
This is also accompanied with higher level of protection and confidentiality which is in- creasingly attractive to investors. Bermuda also offers a foundation which is a corporate alternative to the creation of a trust. Apart from catering to assist with family estate planning matters, Bermuda trust or founda- tion can be anexcellent charitable structure for Islamic instrumentssuch as Waqf.
Bermuda has a wealth of professionals and service providers including trust administra- tors, lawyers and accountants who have the expertise in dealing with complex structured products for investment services and day- today administration. Bermuda also benefits from the existence of the world’s top invest- ment management firms, as well as large independent hedge fund and private equity fund managers. Asset managers can also start their operations in Bermuda because it offers one of the world’s highest standards of living and low taxes together in a prestig- ious international financial centre perfect for managers, investors and entrepreneurs wishing to tap into the sector.
Bermuda offers investment opportunities for, pension funds, sovereign wealth funds, financial institutions, Waqf and endow- ments. Bermuda’s major banking groups and other wealth management firms offer in- novative advisory investment services, and make their services readily available to dis- cuss a wide range of investment drivers from around the world, including bonds, equities, derivatives, structured products, mutual funds, and hedge funds in a Shariah compli- ant way to guide you with your choices.
48 Global Islamic Finance May 2012
A Wealth of Business and Investment Opportunities in Bermuda for Islamic Fi- nance
Bermuda holds a wealth of business and in- vestment opportunities for the avid investor, business professional, and entrepreneur or asset manager wishing to tap into the Sha- riah compliant financing industry. As Islamic finance is so readily embraced in Bermuda with a solid jurisdiction and regulatory frame- work leading the way the investor has every- thing in place for lucrative investment oppor- tunities within Bermuda. Bermuda exudes political stability which is a reassurance to investors and it also has built up recognition and respect as a world renowned financial abode for business and financing.
Bermuda has unrivalled talent from the best of professionals in business and trade to oversee in every stage of planning the in- vestment or project to actually implement- ing and going through with your investment needs. In addition Bermuda’s successful in- frastructure and excellent use of resources give it an edge over other competitor Islamic financial hubs. This is due to the fact that Bermuda has excellent resources in IT, pro- fessional business services and aircraft and transport.
The economic stability is Bermuda is un- rivalled by any other country and it has surpassed the US and UK in its continuing economic growth and development which the country boasts. The standard of living in Bermuda is extremely high and many inves- tors choose the countryas the perfect abode for investments and business opportunities as investors can even move into the country as the standard of living is so high.
The benefits of Bermuda’s tax neutrality is one that investors wishing to tap into the Shariah compliant financing market will enjoy as it gives the opportunity to take ad- vantage if the attractive tax structuring and speed of offering it quickly to the market. In addition Bermuda is located in a prime spot for investments as it is neighbouring huge fi- nancial countries such as the United States which can create ample opportunities for the avid investor. In addition Bermuda has modern corporate and trust laws which are attractive for Islamic finance structures.
The strong growth in the Islamic finance and banking industry offers a number of oppor- tunities for investors and many jurisdictions but Bermuda has scope to further advance with their solid regulatory framework. Ber- muda also welcomes Islamic investment schemes to register on their shores and of- fer a stable environment for Islamic invest- ment funds, projects, financing and bank- ing in a Shariah compliant manner. But for any investor, choosing a jurisdiction can be
a complex and difficult decision although Bermuda has made it an easy choice for of- fering the serious investor a great landscape for Islamic financial investments with lucra- tive profitability and returns.
The growth in the Islamic finance industry has led to its success almost reaching over $2 trillion dollars worldwide however there are still many jurisdictions where the exist- ing regulations and tax laws are ill-adapted to Islamic finance. Bermuda is a country that has had longstanding respect for its regula- tory framework and laws that accommodate Islamic finance straight away so investors do not have to wait around or fear that they are investing in an unstable environment. GIF has explored the various opportunities that Bermuda has to offer and it is now your chance to further investigate what lies ahead for you in Islamic finance investments in the lucrative country of Bermuda.
gif References and Further Reading
• Business Bermuda Brochure pdf File (2012) Business Bermuda, Retrieved from: www.
businessbermuda.org • P. Cox (2011) Special Report Bermuda pdf, The Islamic Globe, Retrieved from The Is- lamic Globe • L Brinded (2012) Bermuda Looks to Posi- tion Itself as Western Shariah Compliant Hub, Euromoney, Retrieved from :http://
www.euromoney.com/Article/2963201/ Bermuda-looks-to-pioneer-Western-Shari-
ah-compliant-hub.html • Evergreen Life Limited (2012) Business Bermuda, Retrieved from www.business-
bermuda.org • Meeting Market Challenges (2010) Conyers and Pearman, Retrieved from:
http://www.conyersdill.com/
publicationfiles/149_10_05_31_Meeting_ Market_Challenges_IFN.pdf • Islamic Finance in Bermuda (2011) PWC, Retrieved from:
http://www.pwc.com/bm/ en/assets/document/pwc_bda_islamic_fi- nance_v2.pdf • Bermuda’s Islamic Finance Initiative (2012) Ber News, Retrieved from: http://bernews. com/2012/01/bermudas-islamic-finance- initiative/ • Bermuda Islamic Finance Assets See Po- tential Growth (2012) Global Islamic Fi- nance Magazine, Retrieved from :http://
www.globalislamicfinancemagazine. com/?com=articles_list&aid=1349 • Bermuda to be first Western centre for Is- lamic finance in favourable tax domicile (2012) Islamic Finance Expert, Retrieved from:
http://ifinanceexpert.wordpress.com/ tag/bermuda-islamic-finance/ • Choosing an Islamic Investment Jurisdiction: Bermuda as a Primary Case Study (2012) Eureka Hedge, Retrieved from: http://www.
eurekahedge.com/news/11_oct_alterna- tive_investment_funds-IFN_Choosing_an_ Islamic_Investment_Jurisdiction_Bermu-
da_as_a_Primary_Case_Study.asp
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