Sukuk issuance will at last be possible in France
At a meeting held in Bahrain, a group of AAOIFI* scholars approved, subject to certain minor technical adjustments, a structure that could allow sukuk to be issued in France under existing law.
This approval is the result of long-term work carried out by various parties under the aegis of the Paris Europlace** Islamic finance commission for more than a year.
The French Shari’ah Board had analysed the structure in question at the end of August 2010 at the request of Paris Europlace, and also gave its opinion, proposals and adjustments.
This important step forward for the development of Islamic finance in France was announced on Thursday 16 December in Dubai by Thierry Dissaux, Chairman of the Fonds de garantie des dépôts, at a forum organised by the Dubai International Financial Centre (DIFC). Arnaud de Bresson, Managing Director of Paris Europlace, announced for his part that the first sukuk could be issued in the first quarter of 2011.
See the document: French Sukuk Guidebook, November 2011
(The participants in the work are listed on page 59.)
*AAOIFI: Accounting and Auditing Organization for Islamic Financial Institutions. It is an independent, not-for-profit organisation. It is responsible for accounting, auditing, governance and Shari’ah standards for Islamic financial institutions. AAOIFI was established under the Agreement of Association signed by Islamic financial institutions on 26 February 1990 in Algiers. AAOIFI was registered on 27 March 1991 in the State of Bahrain as an independent international organisation. AAOIFI is supported by institutional members, 200 members from 45 countries so far, including central banks and Islamic financial institutions. AAOIFI standards have now been adopted in the Kingdom of Bahrain, the Dubai International Financial Centre, Jordan, Lebanon, Qatar, Sudan and Syria. Australia, Indonesia, Malaysia, Pakistan, Saudi Arabia and South Africa have also issued guidelines based on AAOIFI standards.
For further details, see the organisation’s official website.
**Paris EUROPLACE: the organisation responsible for promoting the Paris financial centre to international investors. Paris EUROPLACE was created by the main representative institutions of the Paris financial centre: AFECEI (Association Française des Etablissements de Crédit et des Entreprises d’Investissement), Banque de France, Caisse des Dépôts et Consignations, Paris Chamber of Commerce and Industry, Regional Council of Ile-de-France, Euronext Paris, Euroclear (formerly Sicovam), and the City of Paris. Around these founders, Paris EUROPLACE today brings together more than 150 member institutions. One of the distinctive features of Paris EUROPLACE is that it brings together the full range of players in the financial industry: industrial and commercial companies, banks, brokerage firms, asset management companies, professional associations, consulting firms, law firms and other ancillary professions.