Sectors

Islamic Finance

Jersey offers Islamic investors a flexible legal system, a forward-thinking regulatory regime and a tax neutral environment. This positions our jurisdiction as a clear leader for Islamic financial services. 

Jersey Finance

Overview Latest
Wealth planning

Jersey trusts and foundations are in great demand amongst Muslim clients

Regulation

Jersey supports the regulation of Sukuk issues and other Islamic products

Special Purpose Vehicles

Jersey SPVs have worked with a range of Shariah-compliant Islamic capital market transactions

In brief Jersey has been a leading Islamic finance centre for many years.

Unlike other jurisdictions, we don’t need to amend laws to make things work so all Shariah-compliant structures and contracts can be accommodated and we have extensive expertise in this area.

Islamic Asset and Fund Domiciliation

Jersey is a preferred domicile for developed asset classes, such as:

  • Real estate
  • Private equity
  • Commodity
  • Equity for Islamic fund mandates

Fund regulation depends on the type of investor the funds have, and on whether they’re closed or open-ended. This means a lighter regulatory framework can be used for sophisticated and institutional investors.

Jersey’s SPVs and Sukuk Structures

Our positive reputation for corporate structuring and SPVs sets us apart from other IFCs. While GCC Obligors used to use subsidiary companies as SPVs, Shariah scholars now agree that SPVs should be independent. This means our products can be used together with Sukuk structures.

Jersey-based SPVs have worked with a wide range of Shariah-compliant Islamic capital market transactions. As such, we are ready to provide a number of legal vehicles, including:

  • A Jersey incorporated company which issues Sukuk
  • A limited partnership issuing partnership interests
  • A trust issuing units or trust interests or certificates
Corporate SPVs

While all Jersey companies are governed by the provisions of the (Jersey) Companies Law, a company in a Shariah-compliant transaction can usually be incorporated very quickly.

In fact, we have an urgent incorporation service that allows a company to be incorporated in less than 24 hours, if all the required information is supplied.

Regulatory Support

The Jersey Financial Services Commission (JFSC) supports the regulation of Sukuk issues and other Islamic products. The JFSC processes Islamic products in the same manner as other securities, as Jersey’s laws are broad enough to support all types of Islamic instruments.

Islamic Private Wealth Management – Waqf, Jersey Trusts and Foundations

Jersey trusts provide strong support for generational wealth planning, whether for family groups or for charitable and philanthropic institutions in the Gulf region. This is due to the similarity between Waqfs and trusts, together with our jurisdiction’s international reputation for trust management.

This offering works well with the Jersey Foundation. Introduced in 2009, the Jersey Foundation provides high-net-worth individuals in the Gulf with a positive alternative to trusts. It holds wealth in a forward-thinking structure designed to allow greater control, ensuring that everyone benefits.

Markets served by this sector