The Development of Offshore Financial Centres for Islamic Finance in the GCC
Photo by Matthew Guay on Unsplash
What is it about?
This research focuses on the Islamic financial services offered in the offshore jurisdictions in the GCC, particularly the Dubai International Financial Centre (DIFC), the Bahrain Financial Harbour (BFH) and the Qatar Financial Centre (QFC). Through a comparative study it sheds light on the competitive advantages of these jurisdictions. It also examines the opportunities and challenges faced by the GCC jurisdictions vis-à-vis other well-established Offshore Financial Centres (OFCs) including the Cayman Islands which has generally been a preferred jurisdiction for Middle East investors. Overall, the paper delineates the lessons learnt from the best practices of leading OFCs to further the development of Islamic capital markets in the GCC region.
Why is it important?
In view of the economic downturn, high net worth investors (HNWIs) are looking for efficient and secure jurisdictions for investing their funds. Countries worldwide are positioning themselves as strategic locations to tap into part of this growing liquidity available in the GCC. Given the GCC market largely represents Muslim investors, the development of Islamic capital markets worldwide has been a key strategy for attracting these foreign investments.
The following have contributed to this page: Dr Salma Beebee Sairally