Islamic Finance in Luxembourg and global interest from pension funds
By Daud Vicary Abdullah - March 22, 2011
I returned to Malaysia over the weekend following a few days in Luxembourg meeting with clients, regulators and educational establishments. For a small country with a great deal of focus on financial services, there is an increasing level of awareness regarding the benefits of Islamic Finance and certainly a good deal of support from the Central Bank. Indeed, the regulator is a full member of the Islamic Financial Services Board (IFSB), and will be the first European host of the IFSB Summit meeting in May 2011. Elsewhere in the country educational establishments are running courses in Islamic Finance and many financial institutions are looking at ways to develop their business in IF.
On a more global note it is interesting to see the increasing interest in Sharia’a compliant investments from pension funds around the world. Already some of these institutions have made investments and are few are looking at making acquisitions into Islamic Financial Institutions. Their interest certainly is a bolster for the development of Islamic Finance and gives further credibility to the term that “Islamic Finance is good for business!"
Daud Vicary Abdullah is the Global Leader of Islamic Finance at Deloitte and has more than 35 years experience within the finance and consulting industry, working in Asia, Europe, Latin America, and the Middle East. He is a regular commentator in the media on matters relating to Islamic Finance and has written and contributed to a number of books on the subject, including co-authoring the book Islamic Finance: Why It Makes Sense.