Islamic Finance Services
Sharia-compliant finance is emerging as a significant and growing part of the global financial services market.
The troubles afflicting conventional banks since 2007 have led to more attention being paid to Islamic alternatives. The abundance of wealth and liquidity in the Gulf region, fuelled by high commodity prices and strong economic fundamentals, has significantly increased opportunities for those looking to the Middle East and Islamic finance. This can notably be seen in the success of Sukuks, the most popular Islamic finance instrument; they are becoming a global phenomenon, attracting more issuers from a larger pool of countries than ever before.
Current challenges:
There appears to be great potential for further growth in the Islamic finance industry, which is still at a relatively early stage. However, there are also a number of challenges associated with developing a new industry.
- Changes in Risk Management approach;
- Regulatory compliance: AIFMD, Basel II / Basel III, UCITS IV;
- Liquidity issue, secondary market;
- Sharia standards and standardisation.
How we can help?
PwC's professionals have the industry knowledge and experience to quickly understand your concerns and provide solutions that are tailored to the scale, diversity and complexity of your business.
- Corporate services
- Advisory
- Tax and Audit services
- Accounting services
Corporate services
- Setting up Sharia-compliant investment vehicles, companies or SPVs in Luxembourg;
- Structuring investment products;
- Assistance in listing Sukuks on the Luxembourg Stock Exchange
- Due diligence, legal requirements;
- Drafting the prospectus.
Advisory
- Assessing Risk appetite;
- Selecting suitable service providers;
- Regulatory and Compliance issues;
- Leveraging your Luxembourg positioning;
- Staff training on Sharia principles.
Tax and Audit services
- Audit services tailored to the specific requirements of Islamic finance investment products;
- Tax optimisation and structuring advice.
Accounting services
- Assistance with accounting reporting;
- IFRS transition coordination;
- Advice on accounting treatments;
- Preparation of group consolidation instructions for subsidiaries and headquarters
Past achievements
- Assistance with the setup and structuring of Sharia-compliant real estate/private equity investment vehicles in Luxembourg;
- In-depth research on market opportunities, challenges, regulations and taxes for entry into certain Middle-Eastern countries or the development of Sharia-compliant services or product lines;
- Assistance in designing a market strategy and in preparing the market entry of Sharia-compliant funds in Europe and the Middle East.
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