Islamic Finance and Fiduciary Services
October 7, 2010 in Tax Planning International Review and Forum
Claudio Lema Pose, South Africa, Gerald Buckley and Sandra Louw, Amicorp, Switzerland AG
The debate over Islamic Finance as an alternative to conventional banking/capital market products has grown intensely in the last two years. The raison d’être being that Islamic Finance has successfully kept away the “toxic assets” that severely affected financial institutions during the sub-prime mortgage crisis.
Furthermore, the increase in liquidity in the Gulf countries, fuelled by oil prices and coupled with the new role of the sovereign wealth funds in the global economy have not only resulted in a remarkable growth of the Islamic Finance sector but also to the development of a wide range of Shariah-compliant products.
This tendency is most noticeable in the success of Sukuks (which are similar to asset backed bond) which provide capital requirements for infrastructure projects across the Muslim world. Sukuks that are traded and listed are also particularly attractive for investment or for treasury management purposes. This has led to considerable innovation in structuring Sukuk for leasing (Ijara), infrastructure (Istisna), etc.
This article is an ardent attempt to explore the possibilities of Islamic Finance in the Fiduciary services industry, specifically in relation to investment funds…
The full version of this article is in the BNA International Tax Centre.
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