Dubai, United Arab Emirates, [10th], November 2021: Yesterday, Jersey Finance launched a significant study into the attitudes towards the Islamic finance wealth management market by Muslim High Net Worth Individuals (HNWIs) at its Dubai Flagship event, “Jersey and the GCC: An Enduring Partnership in the Gulf” to help mark its 10th year anniversary of operating in the GCC.
The event demonstrated the importance of the relationship between Jersey and the UAE as a hub for GCC financial wealth management and focussed on the common issues faced by many HNW families and businesses, such as the transition of wealth from one generation to the next, sustainable finance and the need for good corporate governance.
Launching the report, Faizal Bhana, Director for Middle East, Africa and India, Jersey Finance said: “This study provides unique insights into the evolving needs of Muslim high-net worth individuals, and highlights what private wealth managers, financial services providers and international jurisdictions need to do in order to meet those needs. Jersey already has a longstanding presence in the Gulf region and has a wealth of experience in Shar’ia compliance, succession planning and asset protection, placing us in the top rank for jurisdictions supporting the needs of Muslim family offices, ultra-high net-worth and high-net worth individuals.”
“We are delighted to be launching this landmark study at a time when Jersey Finance marks 10 years of presence in the UAE, and with so many key figures coming together to mark this occasion.”, he continued.
Key findings of the ‘Global Attitudes to Islamic Wealth Management’ report include:
- 96% of Muslim HNWIs are actively planning or preparing for wealth succession, with over half (57%) planning to seek tax advice, and nearly two-thirds (63%) seeking Shari’a compliance advice
- The Islamic finance investor base is becoming ever more sophisticated, demanding greater professionalism from financial service providers, whilst continuing to adhere to Shar’ia principles
- Islamic HNWIs are taking an active interest in ESG and ethics in making financial decisions yet over half rely on their own knowledge to do so, presenting an opportunity for private wealth managers to offer more advice and a codified approach to ethical finance
- Venture Capital is becoming an increasingly important staple asset class for Muslims HNWI investors who take a keen interest in early-stage high-growth opportunities in fintech and the digital economy, including in the GCC
- Crypto and digital assets are polarizing opinion with a significant majority believing this asset class will have the same or high importance in the future, but debate in the industry on the Shar’ia compliance of cryptocurrency
- The UK continues to rank as the main staple jurisdiction for Muslim HNWI investors thanks to its legal framework, superior property rights, and inherent compatibility with Islamic law, including for financial transactions and wealth succession. Jeresy is favored by Muslim HNW families and family offices for these services, especially investment trusts
The report compiles attitudes to private wealth, fiduciary planning and succession by Muslim families, taking into account the views of over 2,000 respondents across the key markets of the UK (London), Asia (Kuala Lumpur), the GCC and Africa (South Africa).