15. Prospects and Challenges for Islamic Investment and Wealth Management in Mauritius

While efforts from small market players to develop Islamic finance in Indian Ocean island Mauritius started in the late 1990s, regulatory initiatives to support the development of the sector were taken in the mid-2000s. Mauritius is a reputed international financial centre (IFC) which sought to embrace Islamic finance to diversify its array of financial products and attract high-net-worth investors in its offshore market. However, after more than a decade of the country’s initiatives to enter the Islamic finance industry, the market remains relatively small and nascent. This chapter examines the prospects and challenges of developing Mauritius as an Islamic investment and wealth management (IIWM) destination. There is limited research carried out within the Islamic capital market segment of Mauritius, specifically in the area of IIWM. Through literature-based analysis, primary data collection through a structured survey and the researchers’ own experience of Islamic finance in the country, the issues, challenges and opportunities facing the industry are assessed. Relevant recommendations to enhance the prospects of the Mauritius jurisdiction as an IIWM centre are thereafter suggested.