The Islamic finance sector is playing a progressively more significant role in the global financial community. It is steadily moving from a niche sector to the mainstream as global players open and expand their operations in Muslim regions of the world, and create Islamic investment products to satisfy growing investor demand for Sharia’h compliant banking, investment, and insurance products.
The Luxembourg financial centre is a prime platform for the set up of Islamic Finance operations and boasts the key strengths of a well established, international and dynamic financial centre with a modern and flexible regulatory framework and the support of government and proactive industry leaders to encourage the set up of Islamic Finance in the financial centre. The Luxembourg Stock Exchange was the first European stock exchange to list Sukuk, valued at USD5.5 billion as of September 2008 and a growing number of Sharia’h-compliant investment funds have been approved by the CSSF under the UCITS, non-UCITS and SIF legal frameworks.
KPMG has a local dedicated local team of tax, advisory and audit professionals that work with clients on structuring Islamic investments in Luxembourg. The team is supported by a Global Islamic Financial Services (GIFS) team comprising a global network of professionals with in-depth knowledge of Islamic finance providing practical, value added assistance to clients across a range of specialisms and issues. Members of the team are based in KPMG’s three operating regions: EMA (Europe, Middle East and Africa), Asia Pacific and the Americas with a centre of excellence based in Bahrain.