Assisting Clients with Sharia Law Family Wealth Issues

Sharia law, or Islamic law, plays a significant role in the personal and financial affairs of up to nearly two billion individuals and families globally, particularly amongst high net worth individuals (HNWIs) with assets spanning multiple jurisdictions. In the context of trusts and investment vehicles, the intersection between Sharia principles and English law presents both complex challenges and unique opportunities. English law firms, especially those with cross-jurisdictional expertise, are increasingly called upon to advise clients seeking to structure their affairs in a manner that is compliant with both English legal frameworks and Sharia law. Edwin Coe, and specifically our Contentious Trusts & Estates team, can assist clients in navigating these intricate legal landscapes.

Current Issues and Recent Disputes

Recent years have seen an increase in the number of cases litigated under Sharia law in Muslim majority jurisdictions such as the Middle East region and other parts of the world . These cases often concern the interpretation and application of Sharia principles to trusts, inheritance, and investments.

For example, courts in the United Arab Emirates and Malaysia have dealt with disputes over the validity of English-style trusts in the context of Sharia-compliant inheritance rules. In several instances, English law firms have successfully partnered with local law firms to represent mutual clients, ensuring that the resulting legal structures and dispute resolutions are recognised in both jurisdictions. These collaborations have proven vital in cases involving the distribution of multi-jurisdictional estates, the enforcement of foreign judgments, and the structuring of Sharia-compliant investment vehicles for international clients.

Such successes underline the importance of cross-jurisdictional cooperation, clear communication, and a nuanced understanding of both legal systems. Edwin Coe is able to leverage its international network and can provide comprehensive solutions that meet the diverse needs of clients operating in a global yet culturally sensitive context.

Challenges Faced by Clients

Clients seeking assistance with Sharia law claims from English law firms often encounter several challenges:

• Legal Complexity: The divergence between Sharia and English law—particularly in areas like succession, trust validity, and investment restrictions—can create confusion and require sophisticated structuring.
• Cultural Nuances: Understanding the social, familial, and religious context of Sharia law is essential. Misinterpretations can lead to structures that are potentially legally sound under English law but ineffective or unenforceable under Sharia principles.
• Procedural Barriers: Cross-border matters may involve conflicting laws, differing evidentiary standards and rules on disclosure, and challenges in the recognition and enforcement of judgments.
• Communication: Ensuring all parties, including local counsel and family members, are fully aligned can be difficult, particularly where language barriers or differing expectations exist.

Navigating these obstacles requires a firm with both technical legal expertise and a proven track record in cross-cultural collaboration.

A Unique Position of Strength

Edwin Coe stands out among English law firms for its deep experience in advising HNWIs on trusts and investment vehicles in the context of Sharia law. The firm’s multidisciplinary approach combines technical excellence in English trusts law with a nuanced appreciation of Sharia principles in the context of disputes. This is particularly exemplified by Partner and Head of Contentious Trusts & Estates, Shams Rahman, whose expertise in international estate planning and cross-jurisdictional dispute resolution has earned him recognition among clients and peers alike.

Shams Rahman’s experience encompasses:

• Advising high net worth clients with assets in the UK and Sharia law jurisdictions on compliant trust structures
• Collaborating with non-UK law firms to deliver seamless solutions for mutual clients, ensuring both legal and cultural considerations are addressed
• Resolving complex disputes involving issues such as forced heirship, charitable endowments (waqf), and Sharia-compliant wills in respect of cross-border assets
• Providing clear, practical advice that bridges the gap between English and Sharia legal requirements

Edwin Coe’s commitment to ongoing professional development, cultural sensitivity, and collaborative working ensures that clients receive advice that is not only legally robust but also tailored to their individual circumstances and values. The firm’s international network further enhances its ability to deliver effective cross-border solutions.

Conclusion

For clients navigating the intersection of English law and Sharia law—particularly in relation to trusts, investment vehicles, and estate planning—the choice of legal adviser is crucial. Edwin Coe and Shams Rahman, offer a unique combination of legal expertise, cross-jurisdictional experience, and cultural awareness. By working collaboratively with clients and overseas counsel, we help to ensure that legal solutions are both compliant and effective, providing reassurance and peace of mind to high net worth individuals and families with complex, international affairs.