Jersey’s role in Shariah-compliant structuring

By Claire Le Brocq, Vanessa Blanchet, Vicky Stables and Kathryn Miller

The global Islamic finance industry is growing at pace, with forecasts from the London Stock Exchange Group estimating it will reach US$6.67 trillion by 2027.

This expansion is being driven by demographic shifts, intergenerational wealth transfers and a broader desire among ultra-high-net-worth (UHNW) families and corporates to align wealth with ethical, values-based principles.

As new generations inherit and shape the financial legacies of their families, the demand for Shariah-compliant structures continues to rise, particularly across the Middle East and Asia. 

These clients are increasingly focussed on more than just wealth preservation, they are seeking solutions that combine governance, flexibility and a clear expression of cultural or religious values.

In this evolving landscape, Jersey stands out as a jurisdiction with the legal, regulatory and professional infrastructure to support both the technical and cultural nuances of Shariah-compliant structuring.

A proven centre for Shariah-compliant solutions

Jersey has long been recognised for its credibility in Islamic finance. With decades of experience supporting clients from the Gulf and Asia, the jurisdiction is trusted for its robust, tax-neutral framework and politically stable environment.

This reputation was further reinforced by a statement of practice from Revenue Jersey confirming that profits arising from Murabaha contracts are not subject to income tax, an important clarification that positions Jersey favourably for Islamic structuring.

Its proven legal ecosystem, supported by experienced professionals and a well-regarded financial services regulator, continues to attract clients who value both certainty and innovation.

Flexible structures to meet evolving needs

Jersey’s legal framework offers a variety of vehicles that can be adapted to meet Shariah-compliant requirements. From incorporated cell companies (ICCs) and private trust companies (PTCs) to joint venture vehicles and conventional trust arrangements, the Island provides the flexibility to tailor structures around the specific needs of clients and their advisors.

These options allow for the creation of frameworks that are compliant with Shariah principles, while also meeting the operational, tax and governance needs of international families or corporates.

Standard Murabaha structures are common but the jurisdiction’s strength lies in its ability to respond to complexity, accommodating multilayered asset holdings, diverse beneficiary bases and cross-border requirements with ease.

Balancing onshore governance with offshore strength

As client profiles become increasingly global, so do their structuring needs. It is now commonplace to see cross-border frameworks where governance may be onshore within a jurisdiction where Shariah courts can enforce Islamic principles, while assets are structured offshore to protect privacy, enhance tax efficiency, or reduce exposure to political instability.

Jersey’s ability to integrate into these frameworks makes it a compelling option for clients who want the best of both worlds. Whether managing luxury assets, international real estate, or intergenerational wealth, Jersey offers a level of asset protection and discretion that onshore locations may not be able to match.

Values-driven wealth planning

Today’s clients are increasingly focussed on aligning their financial strategies with ethical considerations. This trend is especially relevant within Islamic finance, where many Shariah principles such as fairness, stewardship and social responsibility, resonate closely with environmental, social and governance (ESG) priorities.

There is growing interest in Shariah-compliant investments not just from Muslim clients but also from those who see Islamic finance as a framework for sustainable, values-aligned investing.

In some cases, families dedicate a portion of their wealth to be invested in a way that supports social or environmental goals, which coincidentally (or deliberately) align with Shariah principles.

This presents an opportunity for forward-thinking advisors and jurisdictions to offer more holistic support, where financial performance and ethical objectives are not mutually exclusive.

Cultural understanding matters

Establishing a technically sound structure is only part of the equation. True success in this space requires deep cultural understanding. For fiduciaries, this means more than following transaction checklists, it involves appreciating the principles, traditions and sensitivities that underpin Islamic financial decisions.

It is important that experience goes beyond technical knowledge and to understand the importance of relationships, the need for discretion, and the value clients place on working with people who ‘get it’. Services should be relationship-focussed, built around a clear understanding of the client’s goals, beliefs and cultural preferences. It is this combination of technical rigour and human insight that makes the difference in complex, values-led structuring.

Jersey’s ongoing opportunity

As global markets continue to shift, with geopolitical instability, economic uncertainty and generational change all playing a role, Jersey’s position as a safe and adaptable jurisdiction becomes even more relevant.

The Island is uniquely placed to respond to the changing needs of clients, offering a combination of legal robustness, regulatory clarity and professional expertise. As demand for Shariah-compliant solutions continues to grow, we expect Jersey to remain at the forefront of innovation supporting everything from traditional family wealth structuring to modern investment themes, including digital finance and impact investing.

This article was first published in Jersey First for Finance (17th Edition).

This article has been carefully prepared, but it has been written in general terms and should be seen as broad guidance only. This article cannot be relied upon to cover specific situations, and you should not act, or refrain from acting, upon the information contained within this article without obtaining specific professional advice. Please contact Equiom to discuss these matters in the context of your particular circumstance. Equiom Group, its partners, employees, and agents do not accept or assume any liability or duty of care for any loss arising from any action taken or not taken by anyone in reliance on the information in this article or for any decision based on it.