By Sean Costello Chief Representative Officer for the GCC and India, Jersey Finance
The opening of the Jersey Finance representative office in Abu Dhabi in early 2011 was a consolidation of Jersey's presence in the Gulf region. The centre acts as a local hub to help communicate the breadth and depth of Jersey's offshore financial capabilities and to carefully position the Jersey brand in the marketplace. There has been an increase in the number of Jersey based trust companies and finance houses which have continued to expand their capabilities in the United Arab Emirates as a result.
Regulatory links
This physical presence is complimented by the recent strengthening of regulatory links between the jurisdictions. Earlier this year, Jersey signed a Double Taxation Agreement with Qatar, following the signing at the end of last year of a Memorandum of Understanding between the Central Bank of the United Arab Emirates and the Jersey Financial Services Commission. Such agreements make it easier and more straightforward to conduct business between Jersey and the nations of the Gulf Cooperation Council (GCC) and therefore play an important part in encouraging increasing business flows between the two locations.
Jersey's finance industry has been working hard at highlighting the benefits of the jurisdiction as a leading international banking centre to the Gulf business community - and these efforts are paying off. The proportion of bank deposits in Jersey emanating from the Gulf currently stands at 13% of the total, with a significant increase in the last two years.
Meanwhile, to enhance Jersey Finance's business development efforts, the Abu Dhabi office has established a Jersey Advisory Group (JAG) to further strengthen ties between Jersey and the GCC. The eminent group consists of senior individuals based in the region, including banking heads, wealth management advisers, senior partners at major law firms and corporate listings specialists. The group provides guidance and support to aid the business development strategy of the Abu Dhabi office in the wider region. JAG meetings are chaired annually by either the Chairman or Chief Executive of Jersey Finance as part of their regional visit programme.
Flexible structures
One of the key selling points for Jersey is the industry's dedication to offering tailored products and services and its flexibility to appeal to the region's unique cultural and financial requirements. There is a demand for trusts, property holding structures and foundations and Jersey already boasts an expanding range of Shariah-compliant financial products, including Islamic asset management and fund domiciliation, Special Purpose Vehicles (SPVs), Sukuk structures and Islamic private wealth management.
Two-way commitment
As well as Jersey-based organisations making in-roads in the Gulf region, UAE-based businesses continue to establish themselves in the island. Most recently Abu Dhabi Commercial Bank (ADCB) opened an offshore office in Jersey. Deepak Rochlani, Executive Vice President, Head of Liabilities & Wealth Management Group, ADCB, explains, 'The launch of Offshore Banking through our Jersey Branch is a testament to ADCB's continued commitment to the UAE banking sector and is expected to facilitate further positive growth in the industry. With Offshore Banking our customers will get local access to international wealth solutions from a secure and highly regulated jurisdiction. The launch of ADCB Offshore Banking through our Jersey branch is another stride towards helping our customers to achieve their financial ambitions.'
It is clear that the growing links between Jersey and the GCC are testament to its appeal as the jurisdiction of choice for Gulf investors.
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