Islamic finance in europe a cross analysis of 10 european countries

PALGRAVE STUDIES IN ISLAMIC BANKING, FINANCE, AND ECONOMICS Islamic Finance in Europe A Cross Analysis of 10 European Countries Edited by Mohyedine Hajjar Palgrave Studies in Islamic Banking, Finance, and Economics Series Editors Mehmet Asutay Business School Durham University Durham, UK Zamir Iqbal Islamic Development Bank Jeddah, Saudi Arabia Jahangir Sultan Bentley University Boston, 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 Hajjar Editor Islamic Finance in Europe A Cross Analysis of 10 European Countries Editor Mohyedine Hajjar Pantheon-Sorbonne University Paris, France Palgrave Studies in Islamic Banking, Finance, and Economics ISBN 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 2019 This 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 AG The registered company address is: Gewerbestrasse 11, 6330 Cham, Switzerland Acknowledgments 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 commitment 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 v Contents 1 Introduction  1 Mohyedine Hajjar 1.1 Interconnection Between Society and Islam  4 1.2 Legal Framework of Islamic Activity  5 1.3 Current Situation of Islamic Finance  5 1.4 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  9 Gabriella Gimigliano 2.1 Introduction  9 2.2 The European Union as an Eligible Regulatory Framework of Accommodation 11 2.2.1 A Matter of Fact: Geographical Spread 11 2.2.2 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 vii 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 39 Bibliography 42 3 Islamic Insurance and European Union Legal Framework 47 Ciro G Corvese 3.1 Introduction 47 3.2 Insurance Companies and Access to the European Market 49 3.2.1 The Creation of a Single European Insurance Market: Three Generations of Directives 49 3.2.2 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 59 3.3 Islamic Insurance and the European Insurance Industry 59 3.3.1 Introduction 59 3.3.2 Islamic Insurance: Takāful and Its Main Characteristics 60 3.3.3 Is Takāful a Mutual? Mutual Insurance Companies: Features and Legislative Framework 63 3.4 Final Remarks 71 Bibliography 74 Part II Status of Islamic Finance in Some European Countries 2019  77 4 Status of Islamic Finance in Austria in 2019  79 Hafsa Lamrani 4.1 Introduction 80 4.2 History of Islamic Finance in Austria 81 4.2.1 Islam and Muslims in Austria 81 4.2.2 The Current Situation of Islamic Finance in Austria 86  CONTENTS  ix 4.3 The Islamic Banking Sector in Austria 89 4.3.1 BAWAG PSK 90 4.3.2 Erste Group Bank 92 4.3.3 UniCredit Bank Austria 92 4.3.4 Raiffeisen Zentralbank Ưsterreich (RZB)/ Raiffeisen Bank International (RBI) 93 4.3.5 Raiffeisenlandesbank Oberưsterreich 93 4.3.6 Raiffeisenlandesbank Niederösterreich-Wien  93 4.3.7 Oberbank  93 4.3.8 Hypo NOE Gruppe 93 4.4 Takāful Sector in Austria 94 4.4.1 UNIQA Versicherung Group AG  94 4.4.2 FWU 95 4.5 Islamic Financial Companies in Austria 96 4.5.1 My Islamic Finance Österreich  97 4.5.2 INAIA Finance 98 4.6 Legal Framework of Islamic Finance in Austria 98 4.7 Academic Situation of Islamic Finance in Austria101 4.8 Conclusion102 Bibliography105 5 Status of Islamic Finance in France in 2019109 Mohyedine Hajjar 5.1 Introduction109 5.2 France and Islamic Finance: Assessing the Potential Market110 5.3 How Far Is French Legal Framework Suitable for Islamic Finance Operations?112 5.3.1 Proceedings of the Senate 112 5.3.2 AMF’s Explanatory Note on UCITS 114 5.3.3 “ Fiducie” Regime 114 5.3.4 Tax Instructions115 5.4 Recent Evolution of Islamic Finance Practice in France119 5.4.1 An Analysis of the SGAM “AI Sharia Liquidité” UCITS 120 5.4.2 An Analysis of the “CAAM Islamic”/“AMUNDI Islamic” UCITS 121 5.4.3 Insurance of Muslim Place of Worship in France 121 x  CONTENTS 5.4.4 Analysis of Chaabi Harmonis Banking Account 122 5.4.5 Swisslife’s “Life Insurance” Investment Product 123 5.4.6 Ṣukūk Orasis 124 5.4.7 Ṣukūk Al Farooj125 5.4.8 Ṣukūk ’istisna · ¯ᶜ from Medialink127 5.4.9 Islamic Real Estate Financing by Chaabi Bank127 5.4.10 Amâne Exclusive Live from Vitis Life128 5.4.11 Ethraa Family Takāful129 5.4.12 Noorassur Individual Health Takāful130 5.4.13 Analysis of Chaabi Damanis Banking Account130 5.4.14 Concluding Remarks on French Islamic Finance Market131 5.5 Islamic Finance Training132 5.5.1 Executive MBA in Islamic Finance132 5.5.2 Diploma in Islamic Economics and Finance (DEFI)133 5.5.3 Executive Master Principles and Practices of Islamic Finance134 5.5.4 Chair of Ethics and Financial Norms (CEFN/ CENF)134 5.5.5 Islamic Banking and Finance Certificate135 5.5.6 Master II Islamic Finance136 5.5.7 Certificat en Economie et Finance Islamique (CEFI)137 5.5.8 Islamic Asset Management and Takāful Insurance Certificate138 5.5.9 Certificate in Islamic and Participative Finance138 5.5.10 Islamic Finance Digital University (UNEFI)139 5.6 Islamic Finance Media and Scientific Publishing140 5.6.1 Academic Research140 5.6.2 Specialized Journals141 5.7 Conclusion143 Bibliography145 6 Status of Islamic Finance in Germany in 2019149 Uğurlu Soylu 6.1 Introduction149 6.2 Historical Outline of the German Market150   ṢUKŪK MARKET IN TURKEY  323 The Turkish government is currently working to increase this market share to 15% by 2025 It is expected that new participative banks such as Vakif Participation and Ziraat Participation will take part in the ṣukūk market For instance, in 2016, Kuveyt Türk Bank issued a Level ṣukūk compliant with Basel III and with a maturity of ten years for US$350 million This transaction is currently the first issuance of ṣukūk investment grade by a Turkish Participative Bank The amount of this issuance is the highest ever issued abroad This ṣukūk was issued by KT ṣukūk Company, an SPV established specifically to carry out the operation This issuance has been rated BBB− by Fitch Rating and is listed on the Irish Stock Exchange However, despite the viability of the ṣukūk market in Turkey, we can notice that there is currently only few corporate ṣukūk issuance in the country In June 2016, the participative banks were the only corporate ṣukūk issuers in the country However, efforts have been made, and some participative banks have attempted to fill these gaps by allowing leasing companies (LACs) to play a part in the issuance of ṣukūk In addition to the numerous sovereign issuances made by traditional players in the Islamic finance industry (such as Turkey, Indonesia, Malaysia, the United Arab Emirates and some Middle Eastern countries) and new issuing countries (such as the UK, South Africa, Hong Kong and Luxembourg), numerous international corporate ṣukūk issuance, mainly from issuers located in the Gulf Cooperation Council (GCC) countries and in Southeast Asia, have been achieved in recent years.7 On a global scale, corporate ṣukūk issuance accounted for 36% of total international ṣukūk issuances in 2014 and 39% of volume in 2015 However, things have changed over the past years and in contrast to historical trends where issuance was driven by sovereigns, corporate issuers dominated the market in 2016, producing a volume of US$47.3 billion, representing a share of 63.2% The participation of new issuers (in particular, the UK and Luxembourg, both rated AAA by Standard & Poor’s) has been warmly welcomed by other market players as sovereign issuance in these countries opens the way to companies’ participation to the ṣukūk market  M. YEGIN, “The emergence of the Turkish ṣukūk market”, YEGIN CIFTCI Law Firm, January 2015 324  D MATRI However, corporate ṣukūk are not limited to issuers from GCC or Southeast Asia Between 2012 and 2014, two corporate ṣukūk issues were carried out in France, one in Germany and one program was approved by the Turkish government Of the ṣukūk issued by companies in GCC and Malaysia, 49 are listed on the London Stock Exchange, 29 are listed on the Irish Stock Exchange, 16 are listed on the Luxembourg Stock Exchange and 13 are listed on the Frankfurt Stock Exchange While providing an alternative source of financing for Turkish companies, this variety of ṣukūk can also be useful in bridging the funding gap for some projects, particularly for infrastructure construction and the establishment of private-public partnerships (PPPs).8 13.3   Analysis of the Existing Legal and Regulatory Framework The legal and regulatory framework for ṣukūk has been gradually established in Turkey through a number of reforms in the public and private sectors The initial legislative act relating to the introduction of ṣukūk in Turkey was a communiqué (statement) issued by the Capital Markets Board of Turkey in April 2010 entitled Communiqué on the Principles pertaining to Lease Certificates and Asset Leasing Companies This communiqué which has now been repealed, concerned only ṣukūk al-ijāra This initial communiqué introduced an onshore special-purpose entity called an asset leasing company (“ALC”) to act as the issuing entity of the lease certificates (ṣukūk) Following the issuance of this Communiqué, amendments to the tax laws were introduced in February 2011 by Bucket Law N°6111 (the “Bucket Law”).9 The purpose of these reforms is to create a taxation regime closer to Conventional Instruments through a set of exemptions Bucket Law N°6111 has introduced exemptions from notary fees, taxes on the land registry and some registration fees relating to the transfer of property and  For instance, since December 2015, Turkish companies have been seeking US$350 billion to complete a backlog of planned projects until 2023, most of which could be provided by Islamic funding  Tax Amnesty Law n°6111 of 25 February 2011   ṢUKŪK MARKET IN TURKEY  325 intangible assets to ALCs.10 The legal structure of the contemporary ṣukūk market in Turkey was established in 2012 and 2013 with the adoption of the new Capital Markets Law in December 2012, including Article 61 which regulates ṣukūk.11 In June 2012, the Public Finance Law No 4749 was amended to facilitate the issuance of sovereign ṣukūk.12 In April 2013, Article 7/A of the Public Finance Law was amended to allow the issuance of ṣukūk by the Turkish Treasury and public institutions Article 7/A states that leasing companies are authorized to buy, sell, redeem, lease and transfer securities of tangible assets (including movable and immovable property) and intangible assets belonging to the state In order to facilitate the issuance of ṣukūk, Article 7/A of the Public Finance Act also authorizes the Deputy Prime Minister for Economic and Financial Affairs to establish a leasing company (“ALC”) and to transfer to an ALC some property assets belonging to the State In order to support the efforts of the Capital Market Board to promote the issuance of ṣukūk in Turkey, tax legislation has been amended to introduce certain exemptions for ṣukūk ijāra issuers In this context: • profits from the sale of a portfolio of assets by a lender to an ALC are now exempt from corporate income tax; • ṣukūk’s settlement-delivery to ṣukūk holders is exempt from value-­ added tax (VAT); • The sale of portfolio of assets is exempt from the payment of certain fees, such as registration fees of the property deed and other fees; and • Income of ṣukūk holders holding ṣukūk with a maturity of five years or more is exempt from withholding tax; Documents relating to the transfer of assets and leases executed by and between lenders and ALCs are exempt from the payment of the tax stamp 10  These exemptions were introduced by the amendment of Article 123/4 of the Tax Law n° 492 Changes were also made to Article 15/C of Law n°5520 on the taxation of enterprises and Article 75 of the Income Tax Law n°193 11  See Article 61 of the Capital Market Law n°6362 12  Cf see Law n°4749 on Public Finances; Law on Public Financing of December 2014 and Law n°5393 on Municipalities 326  D MATRI Despite these initiatives, exemptions were applied mainly to ṣukūk ijāra, and did not sufficiently cover other ṣukūk structures, which created uncertainty among potential issuers and sellers To remove this uncertainty and encourage other ṣukūk issuance, the Turkish bill on improving the investment environment (the “Omnibus Bill”) was promulgated on August 2016, introducing tax exemptions for all the types of ṣukūk In this regard, the omnibus bill amended stamp duty, value-added tax and royalty laws This reform notably introduced an exemption from the payment of the stamp duty for all the documentation related to the issuance of a ṣukūk as well as the exemption from customs duties unlike the old regulation that provided this type of exemptions only for ijāra ṣukūk In addition, the Omnibus Bill amended the Corporate Tax Law, introducing corporate income tax exemption to the income derived from sale and purchase back of all assets and rights by and between ALCs and originators This exemption ensured originators and ALCs (issuers) that no corporate income tax would be levied on the income derived from sale and purchase back of ṣukūk assets Nevertheless, it should be noted that Article 7/A of the Public Finance Law No 4749 only covers the structuring of ṣukūk al-ijāra While, since 2013, the law on capital markets now allows the issuance of various forms of ṣukūk including ṣukūk Wakālā, Murābaḥa, Mushāraka and Istis·naˉc, we note, however, that the majority of ṣukūk that have been issued in recent years in the country rested on the Ijāra structure Under ijāra ṣukūk, the most common ṣukūk structure in Turkish practice, the entity seeking to raise funds through an issuance of ijāra ṣukūk establishes a special-purpose vehicle (SPV) for the sole purpose of issuing lease certificates, and then transfers the underlying assets to the SPV. The SPV then leases these assets back to the entity and issues lease certificates based on the proceeds of the lease Lease certificates representing the ownership share in the underlying asset entitle their holders to a pro rata share of the proceeds generated by the asset The SPV is established as a joint stock company upon approval by the CMB The lease certificates may be sold through either public offering or private placement The CMB does not require a prospectus for a private placement sale.13  White & Case, “Building the Turkish ṣukūk market: One step at time”, 2016 13   ṢUKŪK MARKET IN TURKEY  327 The development of ijāra-ṣukūk is mainly due to the existence of a more favorable tax regime for ijāra-type structures even though similar exemptions are not provided for the Wakālā, Murābaḥa, Muḍāraba, Mushāraka and Istis·naˉc structures Thus, it is now more profitable for an investor to issue ṣukūk in Turkey using the Ijāra structure In its report on the development of participative finance in Turkey, the World Bank recommended amending Article 7/A of the Public Finance Act No 4749 to also promote the issuance of other categories of ṣukūk.14 Following the regulatory changes implemented pursuant to the Communique on Lease Certificates (III-61.1) in 2013, the CMB introduced new permitted ṣukūk structures (in addition to the ijāra structure covered under the previous regulation), including muḍāraba, murābaḥa, mushāraka and Istis·naˉc Under the Communique, originators must conduct ṣukūk issuances via ALCs, which may only be established by certain entities such as banks, intermediary institutions, mortgage financing institutions, real estate investment trusts listed on a stock exchange, first- and second-group public companies listed on Borsa Istanbul, companies maintaining a long-­ term investment-grade rating and companies owned 51% or more by the Turkish Treasury Entities listed under the last three categories above may establish ALCs only for issuances in which they also act as originator In other words, only ALCs established by banks and intermediary institutions may issue ṣukūk for an originator other than its founder corporation Originators seeking to issue ṣukūk must liaise with a bank or intermediary institution in order to conduct ṣukūk offerings, unless they obtain a long-term investment-­ grade rating or are ranked among the first- or second-group public companies listed on Borsa Istanbul This obligation and its associated expenses may prove too burdensome for some corporations It follows, therefore, that Law No 4749 does not allow other entities including municipalities to establish an ALC for the purpose of issuing a ṣukūk Thus, while there is already a favorable legal and regulatory framework for ṣukūk in Turkey, many reforms are still needed to broaden the range of issuers and allow for a more diversified category of Islamic financial instruments  World Bank Group (IBRD), “Turkish ṣukūk Market Report”, 2016–2017 14 328  D MATRI In addition to the existence of legal issues, other economic and financial obstacles currently prevent optimal development of the ṣukūk market in Turkey 13.4   Major Barriers to the Growth of the Ṣukūk Market in Turkey Certain conditions are required to develop a viable financial market a fortiori when one wishes to market products such as ṣukūk that require the  establishment of an environment adapted to Islamic financial instruments However, several essential elements are currently lacking on the ṣukūk market in Turkey, such as the absence of liquid instruments in the short term or the impossibility of using ṣukūk as collateral in a financing transaction The structures necessary for the development of this market are also not organized enough For example, rating agencies have not been sufficiently present and intervene on too few transactions There are currently two credit rating agencies on the Turkish market, Fitch Ratings (Fitch) and JCR Eurasia Rating (JCR) Fitch has been present in Turkey since 1999 and has registered 70 companies in the country—45 banks and non-­ bank financial institutions and 25 private and local enterprises Although Fitch is considered reliable by investors, the agency applies a severe rating to companies it evaluates in Turkey, especially private companies JCR has been present in Turkey since 2007 as a subsidiary of Japan Credit Rating Ltd To date, JCR has evaluated (47 financial institutions and (83) private enterprises (non-financial institutions) Overall, the figures for both agencies are quite modest, considering the size and scale of the Turkish market At present, the supply in the ṣukūk market in Turkey remains limited and few issuers offer Islamic financial products to investors We also see the same problem in the conventional bond market Overall, the range of issuers includes the government and some private companies (mainly financial institutions) Clearly, an environment conducive to the bond market is lacking, and therefore, the ṣukūk market remains hampered by structural problems such as the cost of operations and a lack of underlying assets These elements ultimately have a negative impact on the growth of the ṣukūk market.15 15  D.  DEY, “Building the Turkish ṣukūk market: One step at time”, White & Case, 31 August 2016 See also A.CEYLAN and A.BUYUKATAK, “Country Report: Turkey Islamic Finance continues rising in Turkey”, IFN: Islamic Finance News, 2016   ṢUKŪK MARKET IN TURKEY  329 The lack of liquidity is evident in secondary markets, which discourages investors from investing in ṣukūk because of liquidity problems In addition, the majority of ṣukūk on the market are held to maturity by investors, especially participative banks because of the minimal supply on the market In addition, the Turkish market (conventional as well as ṣukūk) lacks a diversified investor base, thus reducing the global demand for these instruments and resulting in an underdeveloped bond market The ṣukūk investor base consists mainly of participative banks Obviously, there is a need for investors in the medium and long term to generate interest in this type of product Despite these shortcomings, the Turkish market still offers strong infrastructures for clearing and settlement procedures Takasbank and Markezi Kayit Kurulusu (MKK) operate under the supervision of the Turkish Capital Markets Board and provide, respectively, the central clearing and settlement infrastructure and the securities register This infrastructure provides a comprehensive ṣukūk database (as well as conventional debt securities) and greatly facilitates access to the secondary market through the benchmarking of instruments on Bursa Istanbul Other factors also hinder the growth of the ṣukūk market in Turkey The Turkish financial market must put in place a suitable legal framework for Sharı̄ʿa governance Such a framework would establish standards (e.g., standardized documentation) in the Islamic financial industry while ensuring the protection of investors and ensuring the Islamic conformity of products The essential elements for the establishment of good Islamic governance are16: (a) establishment of a Sharı̄ʿa board/committee within participating banks and financial institutions marketing ṣukūk; (b) increased risk control on Islamic financial products; and (c) audit of Sharı̄ʿa Committees Indeed, there is evidence in the Turkish ṣukūk market, few standardized standards in Islamic finance necessary to ensure the integrity of financial transactions These standards are essential to protect investors In addition to this point, the country has a low level of savings Turkey has a low level of savings resulting mainly from the absence of a compul World Bank Group (IBRD), “Turkish ṣukūk Market Report”, 2016–2017 16 330  D MATRI sory pension scheme At present, there are several pension funds in Turkey However, they remain optional and are reluctant to invest in ṣukūk as they seek shorter-term investment instruments Volumes to date in the ṣukūk market are quite modest and, as a result, the few investors seeking such instruments (mainly the participative banks) generally buy and hold their securities There is also very little ṣukūk on the secondary market These elements as well as the lack of major market players currently discourage investors from investing in these products The majority of ṣukūk on the Turkish market are based on an Ijāra structure The offer is therefore not diversified enough and should therefore be developed to attract more investors The lack of awareness and knowledge of the ṣukūk market is another problem for Turkey It would be useful for intermediaries such as investment banks and asset management companies to take the time to inform investors about the nature of Islamic financial products and advise them in their choices Finally, conventional and Islamic financial markets remain embryonic in Turkey As is the case with other emerging financial markets, the ṣukūk market in Turkey may have difficulty developing alongside the conventional bond industry due to higher issuance costs and regulatory requirements heavier for Islamic transactions Therefore, the country’s authorities should ensure a level playing field for these two sectors 13.5   Conclusion While there is no doubt that ṣukūk will assume an increasingly important role as a financial instrument for economic development, it is clear that Turkey will be one of the countries that will shape the future of the ṣukūk market on a global scale Although ṣukūk issuance in the country is still at a preliminary stage, the desire to grow the industry is strong from both the government and private sector issuers Yet, despite the stated willingness of the government to develop the ṣukūk market, many structural problems remain and the supply remains limited for investors Efforts still need to be made to ensure a stable environment conducive to the development of this promising market Undoubtedly, Turkey will meet this challenge brilliantly in the years to come   ṢUKŪK MARKET IN TURKEY  331 Bibliography Books E. Brack, Systèmes bancaires et financiers des pays arabes: vers un modèle commun?, L’Harmattan, 2012 Articles A. Ceylan and A. Buyukatak, “Country Report: Turkey Islamic Finance continues rising in Turkey”, IFN: Islamic Finance News, 2016 I. Chapelliere, “Le modèle Turc: une référence pour l’implantation de la finance islamique en France?”, La Revue du Financier n°182, May–June 2010, p. 114.M. DAMAK, S. Mensah, B. Young and K. Nassif, “The Global ṣukūk Market: The Correction Is Here to Stay”, Standard & Poor’s Ratings Services, Ratings Direct, January 6th 2016 M.  Damak, E.F.  Volland, “Global ṣukūk Market Outlook: Another Strong Performance In 2018?”, S&P Global Ratings, January 7, 2018 D. Dey, “Building the Turkish ṣukūk market: One step at time”, White & Case, 31 August 2016 Malaysia World’s Islamic Finance Marketplace, “2016 Global ṣukūk Market: A Record Year For Corporate Issuance”, www.mifc.com, 27 March 2017 S. Kayadibi, I. Tunc, A. Abdul-Wahab, O. Kayadibi, “The Growing Prominence of Turkey in the Global ṣukūk Market: An Overview”, Proceedings of the Second International Conference on Global Business, Economics, Finance and Social Sciences (GB1 4Chennai Conference), Chennai, India, 11-13 July 2014 M. YEGIN, “The emergence of the Turkish ṣukūk market”, YEGIN CIFTCI Law Firm, January 2015 Reports IMF, “Turkey: 2016 Article IV Consultation-Press Release; Staff Report; and Statement by the executive director for Turkey”, IMF Country Report n° 16/104, April 2016 World Bank Group (IBRD), “Turkish ṣukūk Market Report”, 2016–2017 Arabic Index1 A ᶜAqi ¯da, F Fiqh, 2, 10, 25, 120, 136 Fiqh al-Muᶜa ¯mala ¯t , G Gharar, 2, 9, 37, 61n17, 284 H Ḥ alāl, 97–100, 210, 214 I Ijāra, 27n65, 37, 38, 115, 115n20, 118, 161, 193, 216, 246, 305, 310, 326, 327, 330 Ijāra wa-iqtinā’/ijāra muntahiya bittamlik, 175, 175n86, 176, 178n98, 179, 193 Ijtihād, 25, 32 Istisna ¯ᶜ , 115, 118–119, 216, 246 M Maṣlaḥa, 207 Maysir, Muḍāraba, 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 Murābaḥa, 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  Note: Page numbers followed by ‘n’ refer to notes © The Author(s) 2019 M Hajjar (ed.), Islamic Finance in Europe, Palgrave Studies in Islamic Banking, Finance, and Economics, https://doi.org/10.1007/978-3-030-04094-9 333 334  ARABIC INDEX Mushāraka, 16, 16n27, 27n65, 27n66, 119, 124, 155, 162, 175, 175n87, 176, 178, 179, 246 Q Qur’ān, 9, 10, 25, 99 R Ribā, 2, 9, 12, 12n8, 37, 61n17, 125, 262, 274n9, 284 S Sharı̄ca Sharı̄ca Advisor(s), 220 Sharı̄so-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 Sharı̄ca-compliant governance/ Sharı̄ca governance, 60, 140, 329 Sharı̄ca-compliant index, 209, 210 Sharı̄, model, 29, 32, 34, 35, 41, 207, 284 Sharı̄ca scholars, 28, 29 Sharı̄ca Supervisory Board/ Sharı̄ca Board, 29, 284 Ṣukūk investment s·uku-k, 115, 117, 126 sovereign s·uku-k, 109, 212, 238, 249, 319, 320, 322, 325 ṣukūk Ijāra, 124, 319, 325, 326 ṣukūk ’istisna ¯ᶜ , 127 ṣukūk Mushāraka, 124 T Takāful, 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, 115–117 Tazkiya, W Wakālā, 60–62, 96, 96n39, 119, 128, 130, 284 Waqf Waqf ahlı̄, 274 waqf khayrı̄, 274 Z Zakāt, 22n46, 127, 204, 266 Latin Index1 A ABI, 187, 188, 208, 277 Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI), 30n79, 198, 278, 284, 299, 303 AL Maali institute, 140 Al-Andalus, 272, 274, 274n12 Asset management company(ies), 197, 198, 205, 213, 330 Associazione in partecipazione, 198–199, 213 B BaFin (Germany’s Federal Financial Supervisory Authority), 14, 149, 153, 153n17 Banca di Credito Cooperativo, 203, 205 Banca Etica, 203–205 Al-Baraka bank, 132n61 BAWAG PSK, 87, 90–92, 91n29, 103 C Capital Market Union (CMU), 11, 15–16, 16n25, 40 Casa Árabe, 278, 283n48, 285 Central Bank of Ireland, 163, 165n27, 165n28, 166n35, 168n45, 172n72, 173n75 Chaabi, 122, 127–128, 130–131 CIFIE, 123, 124, 127, 127n50, 128n54, 129, 131, 140 Committee of Basel, 303 CONSOB, 187, 189, 196n14, 203, 203n25, 208–210 Coophalal, 278  Note: Page numbers followed by ‘n’ refer to notes © The Author(s) 2019 M Hajjar (ed.), Islamic Finance in Europe, Palgrave Studies in Islamic Banking, Finance, and Economics, https://doi.org/10.1007/978-3-030-04094-9 335 336  LATIN INDEX E Erste Group Bank, 92 Ethical finance, 3, 80, 188, 203, 204, 207, 215, 223, 227, 228, 251, 253 Ethical funds, 92, 103, 104 EU Court of Justice, 34, 35n97 European Court of Human Right, 99, 100, 104 F Fiducie, 114–115 Financial Sector Supervisory Board (CSSF), 237–239, 239n14 Financial Service Authority (FSA), 12n7, 13, 21, 22n47, 26, 27, 28n69 Forward U (FWU), 94–96, 152, 279 G Gulf Cooperation Council (GCC), 323, 324 H Hypo NOE Gruppe, 93–94 I INAIA Finance, 96, 98 INCEIF, see International Centre for Education in Islamic finance Indexation, 312, 314 Insurance 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, 263–267 First 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, 162 Islamic 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, 59 Islamic Moral Economy (IME), 23, 23n51, 23n52, 25, 25n59, 29 Islamic values, 32   LATIN INDEX  K King Abdulaziz University, 135, 285, 286 Kuveyt Türk Bank AG/ KT Bank, 15, 153–156, 156n21, 292, 294, 296, 297, 320, 323 L Leasing, 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, 215 Luxembourg For Finance (LFF), 238, 239 Luxembourg School of Finance (LSF), 251 Luxembourg Stock Exchange, 13, 237, 238, 324 M Medialink, 127 Minimum capital requirement (MCR), 54, 55 Mit Ghamr saving bank, 150 Mutual insurance fixed-premium mutual insurance companies, 281–282 variable-premium mutual insurance companies, 282–283 My Islamic Finance Österreich, 96, 97, 103 O Oberbank, 87, 93 337 P Paris-Dauphine University, 134 Participative bank(s), 291–317, 320, 323, 329, 330 Purification, 2, 304, 315–316 R Raiffeisenlandesbank Niederösterreich-­ Wien, 93 Raiffeisenlandesbank Oberưsterreich, 93 Raiffeisen Zentralbank Ưsterreich (RZB), 87, 93 S Samara Credit Bank, 263 Solvency capital requirement (SCR), 54, 55 Solvency II, 53–58, 66–68, 72 Soviet Union, 258, 261 Special Finance Institutions, 292 Standard & Poor’s, 317, 318, 323 Stockholders, 68–70 Strasbourg School of Management, 132 Swisslife, 123–124 T Tatar scholars, 262–264 Tax Briefing, 161, 174 Tax instruction, 112, 113, 115–119, 143 U UBAE, see The Union of Arab and European Banks Undertakings 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, 94 United Arab Emirates (UAE), 95, 150, 239 University of Applied Sciences BFI Vienna, 102 University of Luxembourg, 251 University of Naples L’Orientale, 215 University of Rome Tor Vergata, 215 University of Turin, 215 University of Vienna, 102 V Vitis Life, 128–129 W Wedge Business School, 251 ... II Status of Islamic Finance in Some European Countries 2019  77 4 Status of Islamic Finance in Austria in 2019  79 Hafsa Lamrani 4.1 Introduction 80 4.2 History of Islamic Finance in Austria 81... Hajjar Editor Islamic Finance in? ?Europe A Cross Analysis of 10 European Countries Editor Mohyedine Hajjar Pantheon-Sorbonne University Paris, France Palgrave Studies in Islamic Banking, Finance, ... (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