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In this article, we will talk about Islamic Finance in Mauritius and major milestones in the development of this sector.
Introduction
Mauritius has a reputation for peaceful coexistence and racial tolerance, as well as economic and political stability, thanks to its diverse population of Europeans, Africans, and Asians. The island is 1,865 square kilometres in size and is located in the Indian Ocean in a handy time zone (GMT +4) that allows same-day transactions from the United States, Europe, the Middle East, Australia, and Asia. It is now establishing itself as a key international business platform in this part of the world. It is because of the fact that 1.3 million residents have the highest adult literacy rate in Africa. Free primary and secondary school education has a big influence on it.
Mauritius is a prominent regional location for offshore fund structuring and administration, as well as investment, mainly in India, Asia, the Middle East, and Africa. In Mauritius, unit trust and partnership schemes, as well as foreign recognized schemes.
Islamic Finance in Mauritius
Mauritius is a major player in the Islamic financial sector. Indeed, a mix of fiscal and non-fiscal variables has made Mauritius an especially appealing jurisdiction of Islamic financial products. Mauritius has previously established a number of Shari’ah-compliant global funds. Moreover, there is growing interest in the country as a site to create Sukuk utilizing Shari’ah-compliant trusts as vehicles.
Because of its favorable taxation regime, Mauritius has attracted a number of Shariah-compliant funds. In general, Mauritius levies a 15% flat rate of income tax.
The Bank of Mauritius, the country’s central bank, has also applied for membership in the Islamic Financial Services Board (IFSB). The Bank joined as an Associate Member of the IFSB in November 2007. In May 2009, the Bank of Mauritius co-hosted an Islamic capital markets seminar in Mauritius with the IFSB and the Financial Services Commission (FSC). The purpose of this event was to bring Mauritius to the attention of the global Islamic financial community.
The Century Banking Corporation, the first Islamic bank authorised by the Bank of Mauritius, was created on March 31, 2011. It is the result of a strategic partnership between Qatari investors through Domasol Limited and the British American Investment Group. It focuses on wholesale banking, treasury, and wealth management in Africa, Asia, Mauritius, and the Middle East.
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