Islamic finance in Europe (78)

Continuation

Following this successful launch, an Islamic home finance product, a 10-year murabahah contract, was introduced.

This was met with strong demand.

That home financing has been a key expectation of French retail clients.

Currently, there are plans to launch a similar Shari’ah-compliant deposit scheme aimed at:

-      small

-      and medium-sized

enterprises.

The French tax authorities are also planning to issue additional guidelines dealing with other Islamic finance concepts, including:

-      musharakah

-      and mudarabah

in the near future.

From the research paper of European Central Bank

(Authors: F.Mauro, P.Caristi, S.Couderc, A.D.Maria, L.Ho, B.K.Grewal, S.Masciantonio, S. Ongena and S.Zaher)