The midshore centre could be a gateway for the Kingdom's entry to the Asia's burgeoning markets
Jeddah, 27 November 2016 – Labuan International Business and Financial Centre (Labuan IBFC) is set to play a complementary role as the Kingdom of Saudi Arabia moves forward to achieving its Vision 2030, by offering the corporations and investors in the country a platform to expand into Asia's burgeoning markets.
Saudi corporations and investors will be able to leverage on the diversified and comprehensive solutions and services offered by Labuan IBFC, in their expansion into the region through a currency and tax neutral domicile.
"We are keen to play a strong supporting role in the realisation of Saudi Arabia's Vision 2030 plan designed to transform the economic landscape of the country," said Danial Mah Abdullah, CEO of Labuan IBFC Inc during a press conference after an exclusive closed-door briefing to promote the midshore centre.
He added: "We encourage companies in the Middle East region, particularly in Saudi Arabia, to take this opportunity to expand to Asia's burgeoning markets via Labuan IBFC. As part of Malaysia, it offers a stable base from which the Kingdom's corporations may expand their Asian presence.
"Labuan IBFC's unique position as a midshore centre offers comprehensive and diversified solutions and these include Shariah-compliant solutions as well as facilities, so for example we are able to offer Islamic investment banking and trade financing facilities through the Islamic banks operating in Labuan IBFC."
He went on to add that takaful, including re-takaful are key sectors in the midshore centre, and that Labuan IBFC is home to more than 200 license insurance entities, making it one of the fastest growing risk management markets in Asia.
According to the CEO, a total of 16 new insurance-related identity licences were approved and these including entrance of insurance entities from the Middle Eastern countries such as Qatar and United Arab Emirates.
The midshore centre is also a forefront leader in Islamic wealth management with innovative financial products such as the Labuan international waqf. "In fact, we are the only international financial centre in Asia to have a legislation that offers private foundations and special purpose trusts, including Islamic foundations under which waqf could be structured," Danial said.
The exclusive briefing event in Jeddah was attended by leading local and international businesses as well as Saudi Arabia-based high-net-worth individuals and was primarily focused on Labuan solutions and services.
Labuan IBFC welcomes all aspects of business and financial activity ranging from banking and insurance to international tax, trust and foundation laws, and is already home to more than 13,000 companies, 54 banks and over 200 licensed insurance-related entities. In 2015, it achieved another year of growth fuelled by robust business policies and continued intermediation, with 7.2% increase in new company registrations compared to the previous year.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
