Bermuda opening its doors to Islamic Finance

The Premier, the Hon. L. Craig Cannonier, JP, MP, hailed his attendance at the Global Islamic Finance and Investment Group (GIFIG), to be ‘very encouraging for Bermuda’, as the Island was further positioned as a viable option for Islamic Finance.  The objective of the GIFIG conference was to identify key global opportunities and barriers facing Islamic Finance and to utilize the Group’s extensive knowledge and expertise to create a global Islamic Finance market that supports growth and prosperity.

The Premier commented:  “Building on the speech and subsequent contacts that were made at the World Islamic Economic Forum (WIFE) held in London in October 2013, where Bermuda was the only country invited to speak from the UK Overseas Territories, this particular trip gave us another strategic opportunity to address the group of UK and Middle East stakeholders and practitioners of various financial industries about the benefits of investing in Bermuda – a message that I believe was well received. 

“I let them know that Bermuda is committed to becoming a viable option for Islamic Finance.  I also advised them that we have further opened our doors to foreign investment from around the World inclusive of the Islamic countries, both in terms of establishing international financial entities and in terms of foreign direct investment in our various infrastructure projects.”  

The Premier further told the Conference attendees that the entire World should support the integration of Islamic law-compliant (Sharia) financial instruments into the global financial system as these instruments, as a requirement of Islamic law, are based on social responsibility, ethical objectives and social equity and that he hoped the UK and the Islamic countries that are members of the G20 will lead the World in those global arenas discussing the global financial system.

The Premier concluded “the next steps for Bermuda will be to document our value propositions and invite the various Islamic Finance stakeholders to the Island to see our potential first-hand.”

Accompanying the Premier were the Minister of Finance, the Hon. E. T. ‘Bob’ Richards, the Secretary to the Cabinet, Dr. Derrick Binns and Assistant Financial Secretary, Mr. Wayne Brown.  Participants at the Conference included heads of Islamic Central Banks from Kuwait, Libya, Malaysia, Bahrain, Oman, Saudi Arabia and the UAE.

(Bermuda Sun / 28 March 2014)

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Alfalah Consulting - Kuala Lumpur: www.alfalahconsulting.com
Islamic Investment Malaysia: www.islamic-invest-malaysia.com

Push for Islamic finance in Bermuda

Cheryl Packwood, the chief executive of Business Bermuda, was in Dubai this month as part of one of her regular trips to the Arabian Gulf.

As the region grows in importance as a centre of Islamic finance, Ms Packwood is keen to publicise Bermuda's role in supporting Sharia-compliant products as well as promoting the territory as a place to do business.

As the group's recent Islamic Finance Report identifies, Sharia is "probably the fastest growing of all financial products and services" with global Islamic banking assets growing to US$1.2 trillion (Dh4.4tn) in 2012. It goes on to say that "increasingly the heart of Islamic finance is in the six nations which together comprise the Gulf Cooperation Council".

The report also outlines the numerous facets that make Bermuda a good place to do business. First, the territory has a 50-year track record in creating new financial products that promote cross-border investment.

Second, it has an advantageous tax environment: there is no tax on income or profits or capital gains. There is no withholding tax and no restrictions on the cross-border movement of capital. Third, Bermuda has a regulated environment that offers transparency, compliance and investor protection.

Fourth, the territory hosts a range of international firms including PricewaterhouseCoopers, KPMG and Deloitte. "No other country in the world has a higher percentage of actuaries, accountants or underwriters among its population," the report says.

"This not only facilitates business but ensures that existing businesses grow."

Finally, as photographs of the dazzling turquoise waters and white beaches show, Bermuda offers pleasant quality of life.

(The National / 23 Dec 2012)

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Alfalah Consulting - Kuala Lumpur: www.alfalahconsulting.com
Islamic Investment Malaysia: www.islamic-invest-malaysia.com