Cayman Pursuing More Islamic Business With Arabic Language Facility

by Amanda Banks, for LawAndTax-News.com, London

21 March 2007

The introduction of a new Arabic language facility by the General Registry in Cayman will trigger more valuable business from the Islamic region, according to international law firm, Ogier.

Ogier partner Gray Smith, who practices Cayman law from London, observed this week that the move demonstrated Cayman’s recognition of the Middle East as an important area for new business.

“We can now use both Arabic and English names on all documents when setting up a company and can also open bank accounts in both names. Previously we had to use only an English translation. The same ethos was applied to Chinese characters a few years ago and that was of huge benefit in Hong Kong, where both English and Chinese are used widely,” he explained .

Mr Smith went on to add that Cayman law particularly lent itself to Islamic finance structures because of its flexibility. It has become a centre for “sukuks” – bond issues that are Shari’ah compliant, prohibit interest payments and require tangible assets or equity as collateral.

“It’s straightforward, the processes are relatively easy and it’s very flexible, allowing for the drafting of articles and agreements that comply with the restrictions of Islamic law. Cayman is also a lighter regulation jurisdiction and a widely recognised international finance centre which suits Middle East companies looking for investments,” he revealed.

The Ogier partner also predicted further inflows of money into the Middle East as clients are increasingly marketing their funds outside the region.

“The inflow to Middle East funds is a new growth area. Furthermore, the establishment of the Dubai Finance Centre will enable the listing of Cayman funds on the Dubai Stock Exchange and dual listing, in Cayman and the Middle East or the Middle East and the UK,” he stated.

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