Luxembourg is a long-standing partner to the financial communities of Muslim countries in Asia and the Middle East.
To these markets the Grand Duchy offers financial services that can be designed and delivered to conventional or Islamic finance standards. This makes Luxembourg an ideal base from which to offer shariah compliant products and services to European Muslims.
Shariah-compliant investment funds
As the leading centre for internationally distributed investment funds, with numerous service providers experienced in Islamic finance, Luxembourg is an ideal location for the set up, administration, and cross-border distribution of shariah-compliant investment vehicles.
The Luxembourg toolbox contains a wide selection of regulated and unregulated investment vehicles, any of which can be used to establish a Shariah-compliant investment fund. Luxembourg is also a major centre for structured finance, favoured by High Net Worth Individuals and Sovereign Wealth Funds.
Islamic finance ecosystem
Luxembourg’s expertise in the cross-border distribution of investment products and services is at the disposal of Islamic asset managers.
In fact, a number of major banks, legal and audit firms, fund administration companies and other service providers in Luxembourg have active and well-trained Islamic finance teams.
Recognising the existence of different interpretations of shariah law, Luxembourg does not have a standing shariah authority. Nevertheless, the financial centre welcomes standardisation as an important driver for growth of the sector in Europe.
Luxembourg’s toolbox of investment vehicles can be adapted without difficulty to Islamic finance standards. The CSSF, Luxembourg’s financial regulator, has experience of authorising and regulating these structures.
First in islamic finance
Luxembourg, an established partner:
- 1st European country to authorise an Islamic insurance company
- 1st European market to list a sukuk in 2002
- 1st European Central Bank to join the IFSB
- 1st Sovereign State to issue a euro-denominated sukuk