9 783030 040932

ISBN 978-3-030-04093-2

PALGRAVE STUDIES IN ISLAMIC BANKING, FINANCE, AND ECONOMICSSeries Editors: Mehmet Asutay · Zamir Iqbal · Jahangir Sultan

Information about Islamic fi nance in European countries is usually provided by professional-style reports, offering practical data on implementation of standardized products. However, precise developments about material legal provisions applicable to contracts and their actual legal regime are not often detailed. In order to fi ll this gap, 15 researchers from across Europe contributed to this project. They describe the state of actual Islamic fi nance in 10 European countries, as well as applicable EU law. By combining legal analysis with statistical description of existing practices and social demand, this book provides an exhaustive account of the current potential of Islamic fi nance in Europe.

Mohyedine Hajjar is an expert in Islamic fi nance specialized in training and consulting. His interventions focus on governance, ethical control, and the dual compatibility between Islamic fi nance operations and civil law. His research focuses on a comparative conceptualization of fundamental theories between civil law and Islamic law. He is currently teaching Islamic Law at Paris VIII University and Catholic Institute of Paris, France. He is also an associate researcher in Islamic Finance at CEFN at Paris I University (Panthéon-Sorbonne), France. He is an author of many articles on Islamic fi nance. He published a book on Islamic mutual funds and has submitted two books on Islamic investment norms and foundations of Islamic law. He is also a translator and has submitted two translated books to be edited.

Islamic Finance in Europe

Edited by Mohyedine H

ajjar

PALGRAVE STUDIES IN ISLAMIC BANKING, FINANCE, AND ECONOMICS

Islamic Finance in Europe

A Cross Analysis of 10 European Countries

Edited byMohyedine Hajjar

Palgrave Studies in Islamic Banking, Finance, and Economics

Series EditorsMehmet AsutayBusiness School

Durham UniversityDurham, UK

Zamir IqbalIslamic Development Bank

Jeddah, Saudi Arabia

Jahangir SultanBentley UniversityBoston, MA, USA

The aim of this series is to explore the various disciplines and sub- disciplines of Islamic banking, finance and economics through the lens of theoretical, practical, and empirical research. Monographs and edited collections in this series will focus on key developments in the Islamic financial industry as well as relevant contributions made to moral economy, innovations in instruments, regulatory and supervisory issues, risk management, insurance, and asset management. The scope of these books will set this series apart from the competition by offering in-depth critical analyses of conceptual, institutional, operational, and instrumental aspects of this emerging field. This series is expected to attract focused theoretical studies, in-depth surveys of current practices, trends, and standards, and cutting- edge empirical research.

More information about this series at http://www.palgrave.com/gp/series/14618

Mohyedine HajjarEditor

Islamic Finance in Europe

A Cross Analysis of 10 European Countries

Palgrave Studies in Islamic Banking, Finance, and EconomicsISBN 978-3-030-04093-2 ISBN 978-3-030-04094-9 (eBook)https://doi.org/10.1007/978-3-030-04094-9

© The Editor(s) (if applicable) and The Author(s), under exclusive licence to Springer Nature Switzerland AG 2019This work is subject to copyright. All rights are solely and exclusively licensed by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed.The use of general descriptive names, registered names, trademarks, service marks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use.The publisher, the authors and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication. Neither the publisher nor the authors or the editors give a warranty, express or implied, with respect to the material contained herein or for any errors or omissions that may have been made. The publisher remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.

This Palgrave Macmillan imprint is published by the registered company Springer Nature Switzerland AGThe registered company address is: Gewerbestrasse 11, 6330 Cham, Switzerland

EditorMohyedine HajjarPantheon-Sorbonne UniversityParis, France

v

I’m grateful to the Chair of Ethics and Financial Norms of Paris I (Panthéon-Sorbonne) University for the academic support they provided, especially Professor Pierre-Charles Pradier for his precious council through the preparation of this work. My specific regards to all my friends and contacts who supported me in this three-year adventure, especially for their help in mobilizing of some contributors to fill up the research group.

I want to thank also all the contributors to this volume, for their com-mitment in this common project and their support for the Islamic finance industry each one on his way. For many aspects, I have been the first to benefit from their precious expertise.

Acknowledgments

vii

1 Introduction 1Mohyedine Hajjar1.1 Interconnection Between Society and Islam 41.2 Legal Framework of Islamic Activity 51.3 Current Situation of Islamic Finance 51.4 Academic Situation 5

Part I Legal Framework of Islamic Finance in EU Legislation 7

2 Financial Undertakings, Shari ᶜa Rules, and the Internal Market Framework: Challenges and Opportunities 9Gabriella Gimigliano2.1 Introduction 92.2 The European Union as an Eligible Regulatory

Framework of Accommodation 112.2.1 A Matter of Fact: Geographical Spread 112.2.2 A Matter of Policy: Common Ground Between

Islamic Finance and the “Capital Market Union” 15

2.2.3 A Matter of Law: The “Internal Market” as an EU-Based Legal Framework 16

2.3 The Mainstream Normative Approach to Islamic Financial Undertakings 20

contents

viii CONTENTS

2.4 The Mainstream Normative Approach: Some Doubts and Critical Remarks 24

2.5 Addressing Alternative Normative Approaches: Some Starting Points 32

2.6 Concluding Remarks 39Bibliography 42

3 Islamic Insurance and European Union Legal Framework 47Ciro G. Corvese3.1 Introduction 473.2 Insurance Companies and Access to the European

Market 493.2.1 The Creation of a Single European Insurance

Market: Three Generations of Directives 493.2.2 The Most Important Changes to the Legislative

Framework: (a) Directive 2009/138/EU (Solvency II) and (b) Directive 2016/97/EU (Insurance Distribution Directive) 53

3.2.3 Brief and Partial Notes 593.3 Islamic Insurance and the European Insurance Industry 59

3.3.1 Introduction 593.3.2 Islamic Insurance: Taka ful and Its Main

Characteristics 603.3.3 Is Taka ful a Mutual? Mutual Insurance

Companies: Features and Legislative Framework 63

3.4 Final Remarks 71Bibliography 74

Part II Status of Islamic Finance in Some European Countries 2019 77

4 Status of Islamic Finance in Austria in 2019 79Hafsa Lamrani4.1 Introduction 804.2 History of Islamic Finance in Austria 81

4.2.1 Islam and Muslims in Austria 814.2.2 The Current Situation of Islamic Finance in

Austria 86

ix CONTENTS

4.3 The Islamic Banking Sector in Austria 894.3.1 BAWAG PSK 904.3.2 Erste Group Bank 924.3.3 UniCredit Bank Austria 924.3.4 Raiffeisen Zentralbank Österreich (RZB)/

Raiffeisen Bank International (RBI) 934.3.5 Raiffeisenlandesbank Oberösterreich 934.3.6 Raiffeisenlandesbank Niederösterreich-Wien 934.3.7 Oberbank 934.3.8 Hypo NOE Gruppe 93

4.4 Takaful Sector in Austria 944.4.1 UNIQA Versicherung Group AG 944.4.2 FWU 95

4.5 Islamic Financial Companies in Austria 964.5.1 My Islamic Finance Österreich 974.5.2 INAIA Finance 98

4.6 Legal Framework of Islamic Finance in Austria 984.7 Academic Situation of Islamic Finance in Austria 1014.8 Conclusion 102Bibliography 105

5 Status of Islamic Finance in France in 2019 109Mohyedine Hajjar5.1 Introduction 1095.2 France and Islamic Finance: Assessing the Potential

Market 1105.3 How Far Is French Legal Framework Suitable for Islamic

Finance Operations? 1125.3.1 Proceedings of the Senate 1125.3.2 AMF’s Explanatory Note on UCITS 1145.3.3 “ Fiducie” Regime 1145.3.4 Tax Instructions 115

5.4 Recent Evolution of Islamic Finance Practice in France 1195.4.1 An Analysis of the SGAM “AI Sharia

Liquidité” UCITS 1205.4.2 An Analysis of the “CAAM Islamic”/“AMUNDI

Islamic” UCITS 1215.4.3 Insurance of Muslim Place of Worship in France 121

x

5.4.4 Analysis of Chaabi Harmonis Banking Account 1225.4.5 Swisslife’s “Life Insurance” Investment Product 1235.4.6 Sukuk Orasis 1245.4.7 Sukuk Al Farooj 1255.4.8 Sukuk ’istisna ᶜ· from Medialink 1275.4.9 Islamic Real Estate Financing by Chaabi Bank 1275.4.10 Amâne Exclusive Live from Vitis Life 1285.4.11 Ethraa Family Taka ful 1295.4.12 Noorassur Individual Health Taka ful 1305.4.13 Analysis of Chaabi Damanis Banking Account 1305.4.14 Concluding Remarks on French Islamic

Finance Market 1315.5 Islamic Finance Training 132

5.5.1 Executive MBA in Islamic Finance 1325.5.2 Diploma in Islamic Economics and Finance

(DEFI) 1335.5.3 Executive Master Principles and Practices of

Islamic Finance 1345.5.4 Chair of Ethics and Financial Norms (CEFN/

CENF) 1345.5.5 Islamic Banking and Finance Certificate 1355.5.6 Master II Islamic Finance 1365.5.7 Certificat en Economie et Finance Islamique

(CEFI) 1375.5.8 Islamic Asset Management and Takaful

Insurance Certificate 1385.5.9 Certificate in Islamic and Participative

Finance 1385.5.10 Islamic Finance Digital University (UNEFI) 139

5.6 Islamic Finance Media and Scientific Publishing 1405.6.1 Academic Research 1405.6.2 Specialized Journals 141

5.7 Conclusion 143Bibliography 145

6 Status of Islamic Finance in Germany in 2019 149Ugurlu Soylu6.1 Introduction 1496.2 Historical Outline of the German Market 150

CONTENTS

xi

6.3 Present Situation 1526.3.1 First Islamic Bank: KT Bank 1536.3.2 Product Range of KT Bank 154

6.4 Legal Issues and Solutions for Islamic Compliant Products 154

6.5 Performance and Evaluation 1556.6 Remaining Challenges: Regulatory and Governance

Issues 1576.7 Conclusion and Outlook 157Bibliography 158

7 Islamic Finance Under Irish Law 159Edana Richardson7.1 Introduction 1597.2 Legislative and Regulatory Framework 1607.3 Islamic Finance Structures 164

7.3.1 Sukuk 1647.3.2 Islamic Investment Funds 1717.3.3 Islamic Mortgage Alternatives 175

7.4 Conclusion 180Bibliography 181

8 Developments and Prospects for Islamic Finance in Italy 185Sabrina Iannazzone8.1 Introduction 1878.2 The Early Stage of Islamic Finance 188

8.2.1 From the ‘Arab Finance’ to Islamic Finance 1888.2.2 The Influence of Migration Phenomenon on the

Development of Islamic Banking and Finance 1898.2.3 Islamic Banking Takes Its First Steps in Italy

Through a Mortgage Plan 1928.3 Islamic Banking and Finance in Italy: Is It Possible? 194

8.3.1 Accommodating Islamic Banking and Finance Within the Italian Banking Framework: Pros 194

8.3.2 Cons: The Deposit-Guarantee Scheme 1958.3.3 Collective Investment Undertakings Open the

Door to Islamic Investment Deposits 196

CONTENTS

xii

8.3.4 Benefits of the Asset Management Companies: Società di Gestione del Risparmios s—To Integrate Islamic Banking 198

8.3.5 ‘Associazione in partecipazione’ Might Help Understand Islamic Banking and Finance’s Mechanisms 198

8.3.6 The European Passport Could Facilitate the Islamic Banking and Finance’s Growth in the Near Future 199

8.4 Italian Ethical and Cooperative Banking Models Can Give a Boost to the Accommodation of Islamic Finance into the Italian Regulatory and Economic Framework: How Feasible? 2008.4.1 The Religious Background 2008.4.2 The Regulatory Framework of Ethical Banking

and Finance in Italy 2028.4.3 Requirements and Proposals by the Bank of Italy 2028.4.4 A Comparison of Two Models of Ethics in

Finance and Corporate Social Responsibility 2038.4.5 Socially Responsible Investments as a Liaison

Between Two Ethical Financial Systems 2058.5 From Potentiality to Recent Developments 208

8.5.1 Associazione Bancaria Italiana and Commissione Nazionale per le Società e la Borsa: Considerations on Practical Issues 208

8.5.2 The Untapped Potential for Stocks, Mutual Funds, and Sukuk in Italy 209

8.5.3 The Italian Association of Financial Analysts and Advisors Examined Various Options to Issue Sukuk in Italy 211

8.5.4 An Overview of the State of the Art and Possible Reasons for the Italian Delay in Regulating Islamic Banking and Finance 213

8.5.5 Islamic Finance in Education and Academia 2158.5.6 The Crucial Role of Political Initiative and

Fiscal Reforms for the Future of Islamic Banking and Finance in Italy 216

CONTENTS

xiii

8.6 S ukuk and SMEs: Prospects for Shar ı ʿa- Compliant Mini-Bonds in Italy 217

8.6.1 Favorable Legislation and Predominance of Small and Medium Enterprises in Italy Represent Compelling Reasons 217

8.6.2 A Feasibility Study on the Issuance of S˙uku‐k by

an Italian SME 2208.7 Concluding Remarks 222Glossary of Selected Foreign Words 224Appendix 226Bibliography 228

9 Islamic Finance in Luxembourg in 2019 235Jihad Laarab9.1 Abbreviations 2359.2 Introduction 2369.3 Luxembourg and Islamic Finance: A Cross- Border

Market with High Potential 2379.3.1 Key Dates of Islamic Finance in Luxembourg 2379.3.2 Demand and Supply 2399.3.3 Geographical Location Is Strategic:

Luxembourg Is Located in the Heart of Europe 2469.4 Legal Framework Adapted to Islamic Finance in

Luxembourg 2469.4.1 Islamic Investment Funds 2469.4.2 Securitization Vehicles 2489.4.3 Takaful 249

9.5 Academic Situation of Islamic Finance in Luxembourg 2519.6 Conclusion 253Bibliography 254

10 Pioneer Islamic Economics and Banking Experience in Tsarist Russia 257Mohyedine Hajjar and Fatih Habib10.1 Introduction 25710.2 Islam’s Deep Roots in Russia 25810.3 Contribution of Tatar Theologians in Islamic Economics 262

CONTENTS

xiv

10.4 First Known “Islamic Economic Journal” in History 26310.5 Pioneer Islamic Banking Initiatives 26610.6 Conclusion 267Bibliography 268

11 Islamic Finance in Spain 271Germán Rodríguez-Moreno11.1 Introduction 27111.2 Interaction Between Islam and Society 273

11.2.1 Islamic Finance in Medieval Spain 27411.2.2 Starting from Scratch 27511.2.3 Freedom of Religion 27511.2.4 Religious Freedom at the Workplace 276

11.3 The Current Situation of the Islamic Banking and Finance Sector 27811.3.1 Offer or Demand-Led? 279

11.4 The Legal Framework of the Islamic Banking and Finance Sector 28011.4.1 Mutual Insurance Companies 28111.4.2 “ Taka ful Is Not Working” 283

11.5 The Academic Situation of Islamic Banking and Finance 285

11.6 Conclusions 287Bibliography 288

12 Participative Banking in Turkey 291Ibrahim Zeyyad Cekici12.1 Introduction 29112.2 The Figures of the Participative Banks Sector 29412.3 Participative Banks Setting Conditions 30012.4 Legal Framework of Participative Bank Transactions 304

12.4.1 Investment Participative Accounts 30412.4.2 The Credit Cards 30812.4.3 Islamic Credit Operation 30912.4.4 Miscellaneous 315

Bibliography 316

CONTENTS

xv

13 Suku k Market in Turkey 317Dorsaf Matri13.1 Introduction 31713.2 The Sukuk Market in Turkey: State of Play and Prospects

for Evolution 31813.2.1 The Introduction of Sukuk in Turkey 31813.2.2 The Sukuk Market and Its Prospects for

Evolution 32013.3 Analysis of the Existing Legal and Regulatory

Framework 32413.4 Major Barriers to the Growth of the Sukuk Market in

Turkey 32813.5 Conclusion 330Bibliography 331

Arabic Index 333

Latin Index 335

CONTENTS

xvii

Ibrahim Zeyyad Cekici holds a PhD in Law. He is a Lawyer in Paris Bar. He is specialized in Business Law and Islamic Finance. He was the director of the first Islamic Finance executive MBA in the Business School of Strasbourg, Strasbourg University. He wrote a thesis on Islamic Credit Operation in French Law and has authored several papers. He still gives courses and conferences in different universities in France and several countries and advises companies and financial institutions.

Ciro G. Corvese is Associate Professor of Business Law at the Department of Business and Law (University of Siena). He holds a PhD in Banking Law and Legislation (Siena, 1994). The main areas of his research focus on corporate law with special attention to both company law and financial intermediaries’ law. He is editor in chief of the series Profit/Non Profit published by the Pacini Publisher (Pisa). He is a member of the board of the online review Ianus (Department of Business and Law—University of Siena), member of the editorial board of the review Diritto della banca e del mercato finanziario and member of the board of auditors of the online review Ricerche giuridiche (University “Ca’ Foscari”—Venice).

Gabriella Gimigliano holds a PhD in Banking Law and Law of Financial Markets. She is a senior researcher in Business Law and, since September 2018, holds Jean Monnet Chair in EU Money Law, at the University of Siena, Italy.

Fatih Habib is a journalist, translator and editor at Alif edition in Kazan, Russia, holds a master’s degree in journalism from the University of Kazan.

notes on contributors

xviii

He is a translator and an editor specializing in Islamic Tatar history. His translations and publications are in the Arabic, Russian and Tatar languages.

Mohyedine Hajjar holds a PhD in Law, and two Advanced Postgraduate Degrees (DEA) in Business Law and General Private Law and an MSc in Language, Literature and Civilization of the Arab World. He is an expert in Islamic finance, and specialized in training and consulting in the field of Islamic Finance. His interventions focus on governance, ethical control (Shari ᶜa Boards) and the dual compatibility between Islamic finance oper-ations and civil law to ensure the introduction of Islamic finance in civil law. His research focuses on a comparative conceptualization of funda-mental theories between civil law and Islamic Law. He is Lecturer of Islamic Law at Paris III University and Catholic Institute of Paris. He is also an associated researcher in Islamic Finance at Chair of Ethics and Financial Norms (CEFN) at Paris I University (Panthéon-Sorbonne). He is the author of many articles on Islamic finance. His book on Islamic mutual funds has been published and he had submitted two books on Islamic investment norms and foundations of Islamic Law. He is also a translator and had submitted two translated books to be edited.

Sabrina  Iannazzone has been committed to conducting research on Islamic banking and finance for six years. She developed a solid academic background in Islamic studies, politics and international relations at the Orientale University in Naples, Italy. Throughout her study programs, she carried out fieldwork in Istanbul, Turkey, and Paris, France, on risk man-agement in Islamic finance and the development of Islamic financial instruments within the European market, respectively. She presented part of the related research results, in the form of a short article, on the occa-sion of the Sarajevo Islamic Finance and Economics Conference 2014: “Derivatives in Islamic Finance: Does Ethical Finance need them?”

She independently designed and implemented her research projects and successfully collected primary sources in several countries. She devel-oped good connections with the Comité Indépendant de Finance Islamique en Europe (CIFIE), Ecole de Management in Strasbourg, France, Associazione per lo Sviluppo di Strumenti Alternativi e di Innovazione Finanziaria (ASSAIF) in Milan and the Bank of Italy in Rome, among oth-ers. She actively contributed to the Durham Islamic Finance Summer School, UK, and the Turin Islamic Economic Forum, Italy, in 2015.

While being a policy advisor in foreign affairs at the European Parliament in 2016, she contributed her insights on Islamic finance to the discussions

NOTES ON CONTRIBUTORS

xix

of the high-level expert groups of sustainable finance, green economy and Euro-Mediterranean partnership. Recently, she disseminated core con-cepts and the added values of Islamic finance in the Galileo online maga-zine (no. 234, March 2018), in Italy. She is working as a consultant in Brussels, Belgium.

Jihad Laarab is a business process expert. She holds a master’s degree in Banking and Finance from Université Paris X with five years of experience in capital market and risk management at Société Générale Credit and Investment Bank.

Hafsa Lamrani is a consultant with a history of working in the financial services industry, and conducting general studies and research. Her work focuses on Islamic Finance and Corporate Finance. She holds an Executive MBA with specialization in Islamic Finance and an MSc in Corporate Finance. She is the author of many articles on Islamic finance and risk management. She is working on a project about gover-nance in Islamic banks.

Dorsaf  Matri is working as a consultant with the World Bank (IFC, IBRD) in Washington, DC, where she is advising Treasury Departments and Financial Regulation Authorities on Capital Markets financing and Anti-Money Lundering (AML)/Combating the Financing of Terrorism (CFT) issues. She is also the general counsel and head of compliance of Lutetia Capital, a Hedge Fund based in Paris and London.

Prior to this, she worked for the law firms Linklaters and Gide Loyrette Nouel. She was also a member of the Financial Law Committee of Paris Europlace created under the aegis of Christine Lagarde.

Dorsaf holds a PhD in Law with Honors from the Paris I Panthéon- Sorbonne University (Paris I) and is an attorney admitted to the Paris Bar.

A former visiting researcher at the University of Harvard Law School, she has authored several papers and books on financial law and is a Lecturer at the Sorbonne Law School.

Edana Richardson is Lecturer in Law at the University of Maynooth, Ireland, having previously worked as a solicitor in the London and Abu Dhabi offices of an international law firm. Richardson lectures in Islamic finance law and company law at undergraduate and postgraduate levels. She is a graduate of Trinity College Dublin, where she completed her undergraduate law degree (2006) and PhD (2011), and the University of Cambridge, where she completed her master’s law degree (2006). Richardson’s research interests include Islamic finance and capital

NOTES ON CONTRIBUTORS

xx

markets law, and her works have been published in journals and edited collections in Ireland both nationally and internationally.

Germán Rodríguez-Moreno is Associate Professor in Islamic Finance at the IE Business School. He has developed an expertise in Takaful (Islamic Insurance), waqf (Islamic charitable trusts) and other aspects of Islamic finance. His latest publication is “Waqf-based Takaful Model: A Challenge for Social Entrepreneurship” (2018). He is a member of the Observatorio de Finanzas Islámicas (Islamic Finance Observatory) in Spain. City of London trained, Germán is an English solicitor with 20  years of expe-rience as a corporate lawyer doing M&A work all around the world. He is a former head of legal at Aviva, a large international insurance company. Prior to qualifying as a lawyer, Germán obtained a First Class BA (Honours) and an MSc in Politics at Stirling University, Scotland. He then worked as a freelance journalist, during which time he co-authored a book and pub-lished on different Latin American issues. He has lived in Madrid since July 2008.

Ugurlu  Soylu As former Managing Director at Kuwait Turkish Participation Bank’s Financial Services Germany, Ugurlu Soylu was the initiator and pioneer of establishing the first Islamic Bank in Germany and Eurozone.

Ugurlu Soylu has served as lecturer at various universities and is a regu-lar speaker in international conferences. He has delivered numerous invited talks/keynote speeches and has authored several articles and papers.

He holds a master’s degree (German Diploma) in Economics from the University of Mannheim, the “Harvard” of Germany. Prior to joining Kuwait Turkish Participation Bank, he has served as a teaching and research assistant in the Department of Economics at the School of Law & Economics, University of Mannheim.

His doctoral thesis’ (not yet finished) topic is on “Socio economic change in Islamic societies”.

NOTES ON CONTRIBUTORS

xxi

Transliteration signs Arab letters Transliteration signs Arab letters

’ ء Z ظb ب ʿ عt ت Gh غth ث F فj ج Q قh ح K كḣ خ L لd د M مdh ذ N نr ر H هz ز W وs س Y يsh ش Les longues voyelless ص A اd ض U وt ط I ي

trAnsliterAtion signs

xxiii

Fig. 5.1 SICAV performance Salam-pax Ethical Fund of Funds (15 October 2018). (Source: http://www.boursorama.com/) 123

Fig. 5.2 PhD theses defended on the interaction between finance and Islam. (Author’s compilation from information collected from the site: www.theses.fr) 141

Fig. 9.1 The growth of Islamic funds. (Adapted from Thomson Reuters global Islamic asset management outlook 2015 unlocking potential) 241

Fig. 9.2 Growth of Islamic financial assets projected at 2021. (Adapted from ICD, Thomson Reuters, Islamic finance development report 2016 resilient growth) 242

Fig. 9.3 Gross domestic product. (Adapted from OECD, Data. https://data.oecd.org/fr/gdp/produit-interieur-brut-pib.htm) 243

Fig. 9.4 Bank Assets. (Adapted from BIS statistics explorer. http://stats.bis.org/statx/srs/table/a5) 243

Fig. 9.5 Share of authorizations for cross-border distributions. (Adapted from PWC Benchmark your global distribution 2017. https://www.pwc.lu/en/fund-distribution/docs/pwc-publ-gfd-march-2017.pdf) 244

Fig. 9.6 Assets under management AuM of Islamic funds, 1st quarter of 2017. (Adapted from Thomson Reuters, MIFC estimates Islamic funds gearing up 2017. http://www.mifc.com/index.php?ch=28&pg=72&ac=180&bb=uploadpdf) 245

list of figures

xxv

Table 4.1 Distribution of Muslims in Austria according to federal states 82Table 4.2 Volume of the SRI fund market in Austria between 2005 and

2011 84Table 8.1 Differences between mini-bonds and sukuk 219Table 9.1 Muslim population of Luxembourg 240Table 9.2 Muslim population by region 240Table 9.3 Origin of the initiators of the Luxembourg collective

investment funds June 2017 (billions of Euros) 244Table 12.1 Islamic contracts use in Turkey’s Islamic Banks 293Table 13.1 Recent sukuk issuances 321Table 13.2 Sovereign sukuk Issues (2011–2015) 322Table 13.3 Private sukuk issues (2011–2015) 322Table 13.4 Bond market in Turkey 322

list of tAbles

333© The Author(s) 2019M. Hajjar (ed.), Islamic Finance in Europe, Palgrave Studies in Islamic Banking, Finance, and Economics, https://doi.org/10.1007/978-3-030-04094-9

ArAbic index1

1 Note: Page numbers followed by ‘n’ refer to notes.

AᶜAqida, 2

FFiqh, 2, 10, 25, 120, 136Fiqh al-Muᶜamalat , 2

GGharar, 2, 9, 37, 61n17, 284

HHala l, 97–100, 210, 214

IIja ra, 27n65, 37, 38, 115, 115n20,

118, 161, 193, 216, 246, 305, 310, 326, 327, 330

Ijara wa-iqtina ’/ijara muntahiya bittamlik, 175, 175n86, 176, 178n98, 179, 193

Ijtiha d, 25, 32Istisna ᶜ, 115, 118–119, 216, 246

MMaslaha, 207Maysir, 9Mudaraba, 12, 12n10, 16, 16n27, 27,

27n65, 27n66, 28n71, 35n99, 36, 37, 48, 60–62, 115, 119, 199, 212, 226, 246, 250, 284, 304, 305, 307

Murabaha, 12, 12n9, 14, 21, 27n65, 27n66, 37, 115–117, 119, 127, 154, 155, 162, 175, 175n85, 176, 177, 179, 193, 216, 237, 246, 296, 305, 308, 312

334 ARABIC INDEX

Musha raka, 16, 16n27, 27n65, 27n66, 119, 124, 155, 162, 175, 175n87, 176, 178, 179, 246

QQur’a n, 9, 10, 25, 99

RRiba, 2, 9, 12, 12n8, 37, 61n17, 125,

262, 274n9, 284

SSharı ca

Sharı ca Advisor(s), 220Sharıso-compliant, 10, 11, 13n12,

14, 14n15, 15, 16, 18, 18n34, 19, 22n46, 22n47, 25, 26, 28–30, 28n71, 37, 38, 40, 41, 48, 49, 56, 59, 63, 68, 80, 85, 89, 90, 94, 98, 101, 103, 187–189, 192, 193, 197, 198, 203, 205, 206, 209, 211–223, 226, 228, 236, 249, 272, 274, 284, 319

Sharı ca-compliant governance/ Sharı ca governance, 60, 140, 329

Sharı ca-compliant index, 209, 210Sharı, model, 29, 32, 34, 35, 41,

207, 284

Sharı ca scholars, 28, 29Sharıca Supervisory Board/

Sharıca Board, 29, 284Sukuk

investment s·uku-k, 115, 117, 126sovereign s·uku-k, 109, 212, 238,

249, 319, 320, 322, 325sukuk Ija ra, 124, 319, 325, 326sukuk ’istisna ᶜ, 127sukuk Musha raka, 124

TTakaful, 5, 28, 28n72, 48, 48n1, 49,

60–72, 74, 94–96, 96n38, 103, 111, 129, 130, 149, 152, 161, 249–251, 271, 272, 278, 280, 281, 283–285, 298

Tawarruq, 115–117Tazkiya, 2

WWakala, 60–62, 96, 96n39, 119, 128,

130, 284Waqf

Waqf ahlı, 274waqf khayrı, 274

ZZakat, 22n46, 127, 204, 266

335© The Author(s) 2019M. Hajjar (ed.), Islamic Finance in Europe, Palgrave Studies in Islamic Banking, Finance, and Economics, https://doi.org/10.1007/978-3-030-04094-9

Latin index1

1 Note: Page numbers followed by ‘n’ refer to notes.

AABI, 187, 188, 208, 277Accounting and Auditing

Organization for Islamic Financial Institutions (AAOIFI), 30n79, 198, 278, 284, 299, 303

AL Maali institute, 140Al-Andalus, 272, 274, 274n12Asset management company(ies),

197, 198, 205, 213, 330Associazione in partecipazione,

198–199, 213

BBaFin (Germany’s Federal Financial

Supervisory Authority), 14, 149, 153, 153n17

Banca di Credito Cooperativo, 203, 205

Banca Etica, 203–205Al-Baraka bank, 132n61BAWAG PSK, 87, 90–92, 91n29, 103

CCapital Market Union (CMU),

11, 15–16, 16n25, 40Casa Árabe, 278, 283n48, 285Central Bank of Ireland, 163, 165n27,

165n28, 166n35, 168n45, 172n72, 173n75

Chaabi, 122, 127–128, 130–131CIFIE, 123, 124, 127, 127n50,

128n54, 129, 131, 140Committee of Basel, 303CONSOB, 187, 189, 196n14, 203,

203n25, 208–210Coophalal, 278

336 LATIN INDEX

EErste Group Bank, 92Ethical finance, 3, 80, 188, 203, 204,

207, 215, 223, 227, 228, 251, 253Ethical funds, 92, 103, 104EU Court of Justice, 34, 35n97European Court of Human Right,

99, 100, 104

FFiducie, 114–115Financial Sector Supervisory Board

(CSSF), 237–239, 239n14Financial Service Authority (FSA), 12n7,

13, 21, 22n47, 26, 27, 28n69Forward U (FWU), 94–96, 152, 279

GGulf Cooperation Council (GCC),

323, 324

HHypo NOE Gruppe, 93–94

IINAIA Finance, 96, 98INCEIF, see International Centre for

Education in Islamic financeIndexation, 312, 314Insurance

insurance contract, 28n72, 51n3, 51n4, 52, 56–58, 61, 121, 123

life insurance, 50, 50n3, 51, 51n3, 52, 53, 66, 67, 85, 94–96, 123–124, 128–130, 249, 250

non-life insurance, 49, 51, 51n4, 52, 53, 66, 67, 94

Insurance Distribution Directive (IDD), 53–59, 73

International Centre for Education in Islamic finance (INCEIF), 136, 251

International Institute of Islamic Thought (IIIT), 133, 134

International Monetary Fund (IMF), 1, 1n1, 27n65, 318n2

Iqtisad, 263–267First Islamic economic magazine/

First Islamic economic journal, 263–265

Islamic bank(s), 2, 3, 5, 9n1, 12, 12n7, 12n8, 13, 13n11, 13n12, 15, 15n20, 15n23, 22n45, 23n51, 24n53, 26, 27, 27n65, 28, 28n69, 29n74, 34n96, 35n99, 38, 38n106, 59, 85, 89–94, 97, 98, 101–103, 112, 113, 119, 120, 130–137, 140, 143, 149, 150, 152–157, 163, 187–202, 204, 205, 208, 209, 211, 213–217, 226, 227, 241, 246, 253, 258, 262, 265–267, 272, 278–287, 292–294, 300, 301, 303–305, 307, 310, 311, 315

Islamic window(s), 13, 14, 28, 130, 132, 195, 246

Islamic deposit, 14, 162Islamic Financial Services Board

(IFSB), 1, 2n3, 30n79, 62, 198, 227, 237, 278, 281, 283n50, 284, 294, 294n11

Islamic Law, 1–3, 9, 11, 25, 30, 31, 82, 83, 96n38, 98, 99, 104, 111, 120–123, 127, 129, 136, 137, 141, 143, 160, 264–267, 291, 293, 301n45, 303, 305, 312–316

Islamic mortgage, 21, 21n44, 59, 160, 175–179, 193, 309, 311–315

Islamic mortgage insurance, 59Islamic Moral Economy (IME), 23,

23n51, 23n52, 25, 25n59, 29Islamic values, 32

337 LATIN INDEX

KKing Abdulaziz University,

135, 285, 286Kuveyt Türk Bank AG/ KT Bank,

15, 153–156, 156n21, 292, 294, 296, 297, 320, 323

LLeasing, 38, 150, 161, 192,

211, 212, 216, 301n45, 309, 323, 325

Les Cahiers de la Finance Islamique, 141, 142, 142n89

Louvain School of Management (LSM), 253

LUISS School of Government, 215Luxembourg For Finance (LFF),

238, 239Luxembourg School of Finance

(LSF), 251Luxembourg Stock Exchange,

13, 237, 238, 324

MMedialink, 127Minimum capital requirement (MCR),

54, 55Mit Ghamr saving bank, 150Mutual insurance

fixed-premium mutual insurance companies, 281–282

variable-premium mutual insurance companies, 282–283

My Islamic Finance Österreich, 96, 97, 103

OOberbank, 87, 93

PParis-Dauphine University, 134Participative bank(s), 291–317, 320,

323, 329, 330Purification, 2, 304, 315–316

RRaiffeisenlandesbank Niederösterreich-

Wien, 93Raiffeisenlandesbank Oberösterreich, 93Raiffeisen Zentralbank Österreich

(RZB), 87, 93

SSamara Credit Bank, 263Solvency capital requirement (SCR),

54, 55Solvency II, 53–58, 66–68, 72Soviet Union, 258, 261Special Finance Institutions, 292Standard & Poor’s, 317, 318, 323Stockholders, 68–70Strasbourg School of Management, 132Swisslife, 123–124

TTatar scholars, 262–264Tax Briefing, 161, 174Tax instruction, 112, 113, 115–119, 143

UUBAE, see The Union of Arab and

European BanksUndertakings for Collective Investment

in Transferable Securities (UCITS), 14, 14n15, 17n32, 34, 36, 37, 42, 114, 114n18, 120–121, 123, 172, 217, 236, 246

338 LATIN INDEX

UniCredit Bank Austria, 87, 92

The Union of Arab and European Banks (UBAE), 188

UNIQA Versicherung, 94United Arab Emirates (UAE),

95, 150, 239University of Applied Sciences BFI

Vienna, 102University of Luxembourg, 251University of Naples L’Orientale, 215

University of Rome Tor Vergata, 215University of Turin, 215University of Vienna, 102

VVitis Life, 128–129

WWedge Business School, 251

9 783030 040932

ISBN 978-3-030-04093-2

PALGRAVE STUDIES IN ISLAMIC BANKING, FINANCE, AND ECONOMICSSeries Editors: Mehmet Asutay · Zamir Iqbal · Jahangir Sultan

Information about Islamic fi nance in European countries is usually provided by professional-style reports, offering practical data on implementation of standardized products. However, precise developments about material legal provisions applicable to contracts and their actual legal regime are not often detailed. In order to fi ll this gap, 15 researchers from across Europe contributed to this project. They describe the state of actual Islamic fi nance in 10 European countries, as well as applicable EU law. By combining legal analysis with statistical description of existing practices and social demand, this book provides an exhaustive account of the current potential of Islamic fi nance in Europe.

Mohyedine Hajjar is an expert in Islamic fi nance specialized in training and consulting. His interventions focus on governance, ethical control, and the dual compatibility between Islamic fi nance operations and civil law. His research focuses on a comparative conceptualization of fundamental theories between civil law and Islamic law. He is currently teaching Islamic Law at Paris VIII University and Catholic Institute of Paris, France. He is also an associate researcher in Islamic Finance at CEFN at Paris I University (Panthéon-Sorbonne), France. He is an author of many articles on Islamic fi nance. He published a book on Islamic mutual funds and has submitted two books on Islamic investment norms and foundations of Islamic law. He is also a translator and has submitted two translated books to be edited.

Islamic Finance in Europe

Edited by Mohyedine H

ajjar

PALGRAVE STUDIES IN ISLAMIC BANKING, FINANCE, AND ECONOMICS

Islamic Finance in Europe

A Cross Analysis of 10 European Countries

Edited byMohyedine Hajjar