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    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

  • Mohyedine Hajjar Editor

    Islamic Finance in Europe

    A Cross Analysis of 10 European Countries

  • Palgrave Studies in Islamic Banking, Finance, and Economics ISBN 978-3-030-04093-2 ISBN 978-3-030-04094-9 (eBook)

    © 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

    Editor Mohyedine Hajjar Pantheon-Sorbonne University Paris, 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.


  • vii

    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, Sharī 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


  • 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: Taka ̄ful and Its Main

    Characteristics 60 3.3.3 Is Taka ̄ful 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


    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 Österreich (RZB)/

    Raiffeisen Bank International (RBI) 93 4.3.5 Raiffeisenlandesbank Oberösterreich 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 Austria 101 4.8 Conclusion 102 Bibliography 105

    5 Status of Islamic Finance in France in 2019 109 Mohyedine Hajjar 5.1 Introduction 109 5.2 France and Islamic Finance: Assessing the Potential

    Market 110 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 Instructions 115

    5.4 Recent Evolution of Islamic Finance Practice in France 119 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

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    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 Farooj 125 5.4.8 Ṣukūk ’istisnā ᶜ· from Medialink 127 5.4.9 Islamic Real Estate Financing by Chaabi Bank 127 5.4.10 Amâne Exclusive Live from Vitis Life 128 5.4.11 Ethraa Family Taka ̄ful 129 5.4.12 Noorassur Individual Health Takāful 130 5.4.13 Analysis of Chaabi Damanis Banking Account 130 5.4.14 Concluding Remarks on French Islamic

    Finance Market 131 5.5 Islamic Finance Training 132

    5.5.1 Executive MBA in Islamic Finance 132 5.5.2 Diploma in Islamic Economics and Finance

    (DEFI) 133 5.5.3 Executive Master Principles and Practices of

    Islamic Finance 134 5.5.4 Chair of Ethics and Financial Norms (CEFN/

    CENF) 134 5.5.5 Islamic Banking and Finance Certificate 135 5.5.6 Master II Islamic Finance 136 5.5.7 Certificat en Economie et Finance Islamique

    (CEFI) 137 5.5.8 Islamic Asset Management and Taka ̄ful

    Insurance Certificate 138 5.5.9 Certificate in Islamic and Participative

    Finance 138 5.5.10 Islamic Finance Digital University (UNEFI) 139

    5.6 Islamic Finance Media and Scientific Publishing 140 5.6.1 Academic Research 140 5.6.2 Specialized Journals 141

    5.7 Conclusion 143 Bibliography 145

    6 Status of Islamic Finance in Germany in 2019 149 Uğurlu Soylu 6.1 Introduction 149 6.2 Historical Outline of the German Market 150