Islamic finance on the rise in Cayman
(CNS Business): Islamic finance is growing beyond traditional borders to encompass new markets worldwide and continues to make steady inroads in the European and US markets. The Cayman Islands has also become a hub for this type of fund.
Cayman Finance CEO Jude Scott told CNS Business there are numerous reason for Cayman’s popularity among Islamic investors. As a British overseas territory, Cayman is politically stable and its laws are based on English common law, which is the preferred governing law for Islamic finance transactions. The predictability in how the local court system will deal with cases is also a factor, he said.
Mark Beckford, of Beckford & Co
Islamic finance is one of the fastest growing segments of international financial markets, with annual growth rates predicted to continue at 15-20 per cent. The use of offshore companies is driven by many of the same factors as in conventional banking, as tax efficiency, bankruptcy-remoteness and privacy are considerations common to most cross-border transactions.
However, this type of interest-free finance is not specifically regulated in the Cayman Islands. Watch the video to hear why. Local finance attorney Mark Beckford, of Beckford & Co, also explains the basic philosophy behind Islamic finance and its growth throughout the Caribbean.
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Not sure if this is a smart move. Too many people equate Islamic finance with funding terrorism so any gains could be more than offset by a negative backlash. Don’t be at all surprised if this turns round and bites us in the arse.