Tuesday 11 December 2018
Jersey Finance, an organization created to promote Jersey as an international financial center (IFC) of excellence, has unveiled a white paper marking a milestone in the region as the only IFC to set up an office in the Dubai International Financial Center (DIFC).
The report, titled ‘Wealth Structuring and the International Financial Centers: Perspectives from the GCC’, was launched at Jersey Finance’s new office in the DIFC.
With an estimated USD 1 trillion of wealth set to transition between families and generations in the Middle East during the next decade, the report highlights the opportunities that await high net worth investors and wealth management companies in the region.
The white paper explores the future role of wealth structuring and IFCs in the GCC region, as the world faces increased global regulation coupled with growing demands for financial and wealth compliance.
Looking at the sentiment of clients in the region, the report shows they are gradually refining their views on their structures in place – 75 percent of clients now stress test their existing wealth structures, whilst 42 percent see reputation as a critical factor when selecting an IFC.
The use of offshore jurisdictions is highly driven by the geopolitical climate and fears of instability (25 percent) and succession planning (25 percent) followed by privacy and confidentiality (17 percent), asset protection (17 percent), tax efficiency (8 percent), and diversification of jurisdictions and assets (8 percent). This is adding more impetus to clients’ initiatives towards global asset/wealth diversification, wealth structuring and use of IFCs noted for their expertise, regulatory robustness, and transparency.