Cross-border Investment and Finance Structuring

Participants highlighted the impact of new company and investment laws in the KSA, including simplified joint-stock company structures and arbitration-friendly frameworks. These developments have accelerated foreign participation and enabled faster deployment of capital with local alignment.

Participants discussed the importance of legal structures that facilitate joint ventures, provide shareholder protections and facilitate dispute resolution. Emphasis was placed on the need to balance local compliance with international best practices, with examples from KSA’s new Investment Law, the UAE’s updated corporate tax regime and Bahrain’s alignment with FATF standards.

A consistent message across Nairobi, Mombasa and the KSA events was the transformation of traditional family offices into modern platforms. Emerging structures include ADGM-based investment vehicles, hybrid foundations and PTC-led governance schemes. Succession planning and education of NextGen members were also recurring topics.

Professionalisation efforts now include formal board structures, performance benchmarking and third party advisory committees. Families are shifting from opportunistic investing toward portfolio-based strategies with clear mandates, risk tolerances and operational protocols.

Real estate and London debt markets remain a core destination for GCC investment, but diversification is evident. Investors are increasingly interested in senior housing, logistics and data centres. Structured debt vehicles and income-yielding instruments, including sukuk, are gaining popularity.

Increased attention is being paid to sustainability-linked real estate, with green building certifications and ESG-integrated project finance gaining traction. The evolution of UK commercial real estate post-COVID and regional infrastructure growth was cited as a priority for strategic redeployment.

The adoption of AI in portfolio management, the digitalisation of onboarding and the utilisation of cloud-based compliance systems are enabling families to scale and internationalise efficiently. However, inconsistencies in compliance interpretation across jurisdictions remain a pain point. Participants called for greater standardisation and the development of centralised due diligence repositories.

Regulators are becoming more proactive, increasing the compliance burden and cost of onboarding. Firms that invested early in digital transformation are seeing operational benefits in client reporting, risk monitoring and regulatory interaction.

As GCC families expand internationally, maintaining effective control to avoid tax reclassification is crucial. Board meetings, decision-making documentation and strategic separation of GCC and non-GCC structures are now critical pillars of tax and compliance strategies.

Participants also discussed how to implement substance frameworks in Jersey, ADGM and DIFC that meet the standards of both the home and host jurisdictions. Jurisdictional arbitrage is giving way to transparent structuring, with an emphasis on demonstrating genuine decision-making capacity within designated legal entities.

An additional two roundtable events focussed on Shari’a-compliant cross-border finance. They explored evolving Shari’a-compliant financial structures and market expectations.

The sessions convened senior leaders in Islamic finance, real estate, investment, and regulatory affairs to discuss the regulatory, institutional and ESG-linked shifts that are reshaping the landscape. The key Shari’a-compliant cross-border finance discussion points were:

• Regulatory evolution and AAOIFI Standard 62 – Participants noted the significant implications of AAOIFI Standard 62, which mandates a stronger linkage between sukuk structures and tangible underlying assets. This regulatory shift is expected to temporarily contract sukuk issuance while prompting innovation in structuring models, including hybrid long-short formats.
• Market resilience and institutional adaptation – Market sentiment remains optimistic despite regulatory headwinds. Private and mid-sized financial institutions actively engage in real estate finance and demonstrate long-term confidence, particularly in stable markets such as the UK. Key sectors include residential and purpose-specific accommodation (PSA).
• Technology, compliance and integration – Stakeholders emphasised streamlining onboarding and due diligence, particularly across jurisdictions. Proposals included AI-enabled compliance tools and centralised digital platforms, which are described as “Google for due diligence.” These would support a consistent interpretation of regulatory frameworks and accelerate the adoption of Shari’a-compliant finance.
• ESG and ethical finance convergence – The alignment between Islamic finance and ESG principles was a recurring theme. Participants shared how investor expectations – especially from the NextGen – are increasingly focussed on transparency, values-driven governance and impact. Jersey’s reputation for governance, flexibility and integrity was highlighted, although rising compliance costs were noted.
• Jersey’s strategic role – Jersey continues to serve as a trusted partner for Islamic finance due to its legal certainty, multi-jurisdictional capabilities and experience in bespoke Shari’a-compliant structuring. Its ability to bridge GCC values and Western regulatory expectations was seen as a key differentiator.

• Prioritise digital transformation and governance modernisation.
• Segregate regional vs. international investments to manage compliance and tax exposure.
• Adopt institutional-grade asset allocation strategies aligned with global benchmarks.
• Consider hybrid structures combining Jersey trust and regional foundation models.

• Strengthen collaboration across IFCs to deliver integrated platforms.
• Monitor global tax reforms, including BEPS 2.0 and the UAE’s corporate tax regime.
• Educate clients on effective control of risks and evolving substance requirements.
• Facilitate knowledge transfer through regional workshops and digital toolkits.

• Expand support for regional education on structuring trends.
• Deepen outreach to NextGen stakeholders through mentorship and peer forums.
• Reinforce Jersey’s role as a long-term bridge for GCC-UK/EU investment.
• Invest in digital engagement platforms to streamline onboarding and service delivery.

• Reassess sukuk and alternative finance models to ensure alignment with updated standards.
• Integrate ESG metrics and Shari’a screens into long-term portfolio strategies.
• Encourage jurisdictional collaboration to ensure consistent and compliant structuring support.
• Enhance digital infrastructure for compliance and KYC to reduce onboarding friction.