| 27 January 2023, Friday |

UAE signs historic business pact with Jersey

On Wednesday, the UAE signed a historic investment agreement with Jersey to “help facilitate” financial flows between the two countries and provide investors with “better protection.”

The agreement, Jersey’s first bilateral investment treaty, was signed at the headquarters of the UAE Ministry of Finance in Dubai in an effort to encourage foreign investment and protect both parties’ investments “from all non-commercial risks.”

Mohamed Al Hussaini, Minister of State for Financial Affairs, who signed the agreement on behalf of the government, stated that the agreement reaffirmed the UAE and Jersey’s ambitions to “strengthen economic and investment cooperation.”

“It also reaffirms their commitment to providing an appropriate environment to attract foreign investments in accordance with a legal and legislative system that adheres to best international practices,” Al Hussaini said.

Senator Ian Gorst, who signed the agreement on behalf of the self-governing UK dependency, stated that the “significant treaty” will improve the business environment and increase investment flows between Jersey and the UAE.

“This is Jersey’s first bilateral investment treaty, and its signing between our respective jurisdictions symbolizes our deep friendship,” Gorst said.

“As Jersey celebrates its 60th anniversary as an international finance centre, and the UAE celebrates its 50th National Day, this new treaty reflects the strength of our relationship and will encourage greater economic cooperation for mutual benefit.”

To coincide with the event, Jersey Finance, a non-profit organization funded by the island’s finance industry to promote the island as a financial centre, released a study on global attitudes toward Islamic finance.

Among the 96% of Muslim high net worth individuals preparing for wealth succession, 57% desired tax advice and nearly two-thirds (63%) desired Sharia compliance advice.

According to the study, Islamic finance investors are also taking an active interest in environmental, social, and corporate governance, providing private wealth managers with the opportunity to provide more advice and a codified approach to ethical finance.

The study, which was released to coincide with the organization’s tenth anniversary in the GCC, also discovered that venture capital is increasingly becoming a staple asset class for Muslim high net worth investors who are particularly interested in early-stage high-growth opportunities in FinTech and the GCC digital economy.

Meanwhile, the UK remains the primary jurisdiction for Muslim high net worth investors, according to the study, due to its legal framework, superior property rights, and inherent compatibility with Islamic law, including for financial transactions and wealth succession.

According to the study, which polled over 2,000 respondents in the UK, Kuala Lumpur, the GCC, and South Africa, Muslim high net worth families and family offices prefer Jersey for these services, particularly investment trusts.

“Jersey already has a long-standing presence in the Gulf region and a wealth of experience in Sharia compliance, succession planning, and asset protection, putting us at the top of the list of jurisdictions supporting the needs of Muslim family offices, ultra-high net-worth and high-net-worth individuals.” “Jersey Finance’s director for the Middle East, Africa, and India, Faizal Bhana, stated.

Meanwhile, the new UAE-Jersey agreement will provide investors with “just and immediate compensation for their investments.” “if they are dealt with illegally

The UAE has signed 104 bilateral agreements to protect and encourage foreign investment.

  • The National News