Press release of 9 August 2012
Press release
9 August 2012
CIFIE’s Shari’ah Board approves the first French sukuk
The Independent Committee for Islamic Finance in Europe (CIFIE) has certified that the “Orasis” ijarah and musharakah sukuk issued by the French distributor of savings and investment products Legendre Patrimoine comply with the standards of Islamic finance, on 29 June 2012.
CIFIE has drawn up a detailed charter setting out the steps and the Shari’ah arguments of the signatory scholars.
In order to verify that the “Orasis” sukuk continue to comply with the principles of Islamic finance, CIFIE will carry out a half-yearly Shari’ah audit of these sukuk.
The role of the Compliance Board (or Shari’ah Board), made up of recognised experts in Islamic law, is to confirm that a financial product is compliant so that it can be marketed as “Shari’ah-compliant”.
Sukuk are Islamic “investment certificates” representing a share in a dedicated vehicle, which itself invests in tangible activities or assets (real estate or movable property, industrial or land assets) that are, of course, lawful (halal) while generating returns. These returns are then paid to the holders of the units as periodic remuneration. These returns are not interest (riba), since they do not remunerate the mere passage of time or the loan, but the economic ownership of real assets serving the real economy.
The “Orasis” offer gives a choice between an “ijarah” contract and a “musharakah” contract. The “ijarah” contract is a lease contract that allows a financial intermediary to purchase assets and make them available to the end client. The “musharakah” contract is a “partnership” contract by which a financial intermediary contributes to the financing of projects or one-off operations in exchange for a share of the results (losses or profits).
This launch is the first of its kind in metropolitan France and confirms a genuine step forward for Islamic and ethical finance in France. It responds to growing demand for halal and ethical investments in France and in Europe. It combines the advantages of responsible investment in renewable energy with respect for the principles of Islamic finance
The fatwa (or legal opinion) signed by three of the jurists of CIFIE’s Shari’ah Board is annexed to the subscription agreement and to the documentation that Legendre Patrimoine makes available to its clients.
For any Shari’ah question, please write to: contact@cifie.fr
For further technical information on the product and for any subscription request:
http://www.legendre-patrimoine.com/sukuk-orasis/
Notes to editors
CIFIE was born of a desire to answer the questions raised by the development of Islamic finance in France and in Europe. Islamic finance cannot be handled properly without taking its environment into account. This is why, in addition to eminent specialists in Islamic law, the committee includes professionals and specialists in conventional finance and French law.
CIFIE is independent and its members live and practise in metropolitan France. Their experience of the French context gives them the perspective needed to carry out their missions.