Malta is becoming more and more important as a place for Islamic finance, with annual growth rates of 15-20%, and expected revenues of $2 billion in 2014.
What makes this island nation so interesting for Shariah-compliant capital investment are a strong and flexible framework, and comprehensive double tax treaties. Malta also benefits from a geographically favourable location.
The Conduit that is offered by Malta’s international financial centre is well received by Islamic investors who want to invest their funds in a single-purpose company, security funds, alternative investments or the Malta Professional Investment Fund. Well-regulated local structures also allow Protected Cell Companies (PCCs) and Incorporated Cell Companies (ICCs). Malta is also perfectly suited for foundations, also known as Takaful insurance.
FinanceMalta will release further guidelines for this particular type of the financial sector in January 2015. Further accounting for its flexibility, Malta is now the only EU member state to issue official regulations for Shariah-compliant investments. The purpose of these regulations is to prevent initial difficulties with financial statements, and to minimise barriers for communication and different opinions about regulations with local financial service providers.
Another component of Malta’s success is the availability of well-trained and English-speaking workers. Furthermore, more and more students in the country are showing an interest in familiarising themselves with the Islamic financial system.
The office of Dr. Werner & Partner is happy to advise Islamic businesses, while also paying attention to Shariah-compliant implementation, for example, in applying for an investment license (A, B).
