Abstract
After the 2008 crisis, French authorities tried to attract foreign funds; Islamic finance was seen as an attraction tool. They established some legal measures to accommodate Islamic financial products with the French legal framework. This official activity was limited to the issuance of four tax instructions recognizing four fundamental contracts of Islamic finance and mitigating the tax friction of the Islamic products. The choice of tax instructions avoids political difficulties that may oppose other legislative initiatives such as bills. The insufficient legal framework and the bad tax reputation caused the escape of the foreign Islamic investors and the immobility of the internal market. Despite the presence of the biggest Muslim community in Europe in France and therefore a large potential for Islamic finance products, the French market is stagnant. The main French economic and financial actors prefer to stay in shadow and the market is left to brokers and councils which affected the public confidence in the offers. However, the training sector is characterized by some training programs that have international renown and by the first French-speaking peer-review journal.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Similar content being viewed by others
Notes
- 1.
This statement took place during the 9th World Islamic Economic Forum held in London in 2013. See World Islamic Economic Forum: Prime Ministers’ speech, online at: https://www.gov.uk/government/speeches/world-islamic-economic-forum-prime-ministers-speech
- 2.
Government issues first Islamic bond, online at: https://www.gov.uk/government/news/government-issues-first-islamic-bond
- 3.
Commission des finance du Sénat: “Rapport d’information”, n°329, online at: https://www.senat.fr/rap/r07-329/r07-3291.pdf, p. 8.
- 4.
Pew Research Center: “The Future of the Global Muslim Population”, online at: http://www.pewforum.org/2011/01/27/the-future-of-the-global-muslim-population/
- 5.
Ibidem.
- 6.
Ipsos Mori: “Perils of perception 2016”, online at: https://www.ipsos.com/sites/default/files/2016-12/Perils-of-perception-2016.pdf
- 7.
Hakim El Karoui: “Un islam français est. possible”, Institut Montaigne & IFOP, Rapport Septembre 2016.
- 8.
Ibidem, p. 26.
- 9.
Ezzedine Ghlamallah: “La finance islamique française en 2016”, in Dossier ENASS Papers 11, Banque & Stratégie, n°347.
- 10.
Ibidem.
- 11.
Commission des finance du Sénat: “Rapport d’information n°329”, p. 8.
- 12.
Commission des finance du Sénat: “Rapport d’information n°329”, online at: https://www.senat.fr/rap/r07-329/r07-3291.pdf
- 13.
Commission des finance du Sénat: “Rapport d’information n°33”, 17/10/2007, online at: https://www.senat.fr/rap/r07-033/r07-0331.pdf
- 14.
Ibidem, pp. 37–40.
- 15.
The reports of the two workshops are available online at: https://www.senat.fr/rap/r07-329/r07-329.html
- 16.
Report of the second round table, Le développement de la Finance Islamique en France: Quelles adaptations du cadre législatif et/ou réglementaire?, online at: https://www.senat.fr/rap/r07-329/r07-3294.html
- 17.
Ibidem.
- 18.
The French term for Undertakings for Collective Investment in Transferable Securities (UCITS) is “Organismes de placement collectif en valeurs mobilières” or OPCVM.
- 19.
A non-profit organization can be “recognized to be of public utility” by the Government, based on the advice of the French administrative court “Conseil d’État”. This is a lengthy and difficult procedure.
- 20.
“Adptation du régime de la fiducie afin de permettre l’émission de ‘Sukuk’”, JCPE 2009 Act.322, et J. Charlin: “Fiducie, sukuks et autre murabaha ou ijāra, à propos de la finance islamique”, JCPE 2009.1946, n°7 à 16.
- 21.
This law creates a second paragraph in the article 2011 which reads as follows: “The trustee exercises the fiduciary ownership of the assets contained in the trust patrimony, for the benefit of the beneficiary or beneficiaries, according to the stipulations of the trust agreement”.
- 22.
For further details: L. Aynès et P. Crocq: “La fiducie préservée des audaces du législateur”, D.2009, 2559.
- 23.
Ibidem.
- 24.
Bulletin Officiel des Impôts du 12/09/2012, BOI-DJC-FIN-20120912.
- 25.
General Directorate of French Public Finance: “Murābaḥa Tax Instruction 4FE/S1/10” of 23 July 2010, published in BOI n°78, 24 August 2010.
- 26.
General Directorate of French Public Finance: “Ṣukūk tax instruction 4FE/S2/10” of 23 July 2010 published in BOI, N°78, on 24/08/2010, See the definition of ṣukūk, n°4.
- 27.
B. Gérard Godard et F. Martin, “Les financements islamiques ou éthiques”, Les nouvelles fiscales, n° 1069, June 2011, p. 18 et s.
- 28.
General Directorate of French Public Finance: “Ṣukūk tax instruction 4FE/S2/10” of 23 July 2010, published in Bulletin Officiel des Impôts, n°78, on 24 August 2010. See the definition of ṣukūk, n° 4.
- 29.
In accordance with this point of view: F. Barrière: “Propriété fiducie et ṣukūk”, JCPE 2011.1203, n°22–23.
- 30.
General Directorate of French Public Finance: “Ṣukūk tax instruction 4FE/S2/10”, n°5.
- 31.
General Directorate of French Public Finance: “Ijāra Tax instruction 4FE/S3/10” of 23 July 2010, published in BOI n°78, 24 August 2010.
- 32.
Ibidem.
- 33.
General Directorate of French Public Finance: “
Tax instruction 4FE/S4/10” of 23 July 2010, published in BOI n°78, 24 August 2010. - 34.
Ibidem, II-70.
- 35.
Ibidem, II-70.
- 36.
Fiqh cell of the Islamic Center of Reunion: “Communiqué of the fiqh cell of the Islamic Center of Reunion about the reimbursement of the shares of SGAM AI Sharia Liquidity”, 31 March 2009.
- 37.
Emily Firth: “CAAM launches its first Shariah Sicav”, 29 September 2009, online at: http://citywireselector.com/news/caam-launches-its-first-shariah-sicav/a359293
- 38.
Credit Agricole: “Amundi annonce le changement de nom de sa SICAV CAAM Islamic en “Amundi Islamic””, press release of 07 September 2010, online at: https://www.credit-agricole.com/finance/finance/communiques-de-presse-generaux/amundi-annonce-le-changement-de-nom-de-sa-sicav-caam-islamic-en-amundi-islamic
- 39.
Data on the performance of the funds are available on the manager’s website: https://www.amundi.fr/
- 40.
Cabinet Labidi: “Assurance spécifique des lieux de culte musulmans en France”, online at: http://www.cabinetlabidi.com/
- 41.
See the following article: https://ribh.wordpress.com/tag/chaabi-harmonis/
- 42.
Swisslife: “Swiss Life lance Salam-Epargne & Placement, le premier contrat d’assurance vie conforme aux principes de la finance islamique”, online at: http://www.swisslife.fr/Le-Groupe/Swiss-Life-en-France/Communiques/Swiss-Life-lance-Salam-Epargne-Placement-le-premier-contrat-d-assurance-vie-conforme-aux-principes-de-la-finance-islamique
- 43.
Information given by Dr. Tarik Bengari, president of CIFIE who is certifying and auditing this product.
- 44.
M. Zaidman: “Searching for new partners to overcome the lack of independence of LEGENDRE PATRIMOINE”, online at: http://palimpsestes.fr/IUT/pmo/pmo2014/pmo-final/E.pdf
- 45.
Al-Khawarizmi group: Sukūks, A new financing alternative for Morocco, 28 December 2012, pp. 97–98.
- 46.
“France: Islamic finance to finance the energy transition?” Online at: https://ribh.wordpress.com/tag/legendre-patrimoine/
- 47.
Al-Khawarizmi group: Sukūks, A new financing alternative for Morocco, 28 December 2012, p. 94.
- 48.
Ibidem.
- 49.
Ibidem.
- 50.
CIFIE: “1st ṣukūk
for the production of ethical films”, online at: 
- 51.
Ibidem.
- 52.
Chaabi Bank: “La Murābaḥa, Un financement immobilier compatible avec la finance éthique et islamique”, online at: http://www.chaabibank.fr/produit/la-Mourabaha/
- 53.
As announced by 570Easi: https://www.al-kanz.org/2017/04/13/financement-immobilier-riba/
- 54.
CIFIE: “VITIS LIFE lance Amâne Exclusive Life”, en ligne sur: http://www.cifie.fr/vitis-life-lance-amane-exclusive-life/
- 55.
Ibidem.
- 56.
“Ethra’a Takāful Famille: the wrong good idea”, published on 05 March 2015, updated on 19 June 2015, en ligne sur: http://lafinanceislamique.com/infos-finance-ḥalāl/etude-ethraa-takāful-famille/
- 57.
Ibidem.
- 58.
Noorassur: “Noorassur Santé Individuel” (customer information document).
- 59.
See all offers online at: http://www.noorassur.com/nos-produits-finance-islamique.php
- 60.
The description of this bank account was summarized from: Chaabi Bank: “Convention Chaabi Damanis, Clientèle des particuliers, Conditions générales”, in effect from 01 January 2017, The Islamic Finance Journal: “Damanis, le compte tirelire ḥalāl de Chaabi Bank”.
- 61.
For example, al-Baraka Bank: “Al Baraka will open several agencies in France” online at: https://ribh.wordpress.com/2010/09/27/al-baraka-france/
- 62.
- 63.
- 64.
See the following article: “IIIT-France lance une formation en Finance Islamique” on the Journal of Islamic Finance, online at: https://ribh.wordpress.com/2009/09/24/iiit-france/
- 65.
Formation website: http://www.financeislamique.dauphine.fr/
- 66.
Chair website: http://cenf.univ-paris1.fr/
- 67.
Ghassen Bouslama: “Islamic Finance in Reims Management School”, in Islamic Finance in Western Higher Education by Ahmed Belouafi, Abderrazak Belabes, Cristina Trullols, Palgrave Macmillan, 2012, p. 138.
- 68.
Ibidem, p. 137.
- 69.
Ibidem.
- 70.
Ibidem, p. 138.
- 71.
The information presented about this Master is taken from the master’s brochure we received from the secretariat of the Faculty of Law of the University of Strasbourg.
- 72.
Ibidem.
- 73.
Ibidem.
- 74.
Ibidem.
- 75.
The information in this section is taken from the Certificate Profile as we received from the Student Affairs Section at IESH.
- 76.
The presentation of this short certificate can be consulted on the Institute Website: https://ieshdeparis.fr/formation-certificat-de-finance-islamique/
- 77.
See the training course presentation: https://formation.kedge.edu/formations-courtes/gestion-d-actifs-islamiques-assurance-takaful
- 78.
Nicolas Thouet: “Finance islamique: l’université Paris-Dauphine lance une formation Takaful”, https://www.argusdelassurance.com/acteurs/finance-islamique-l-universite-paris-dauphine-lance-une-formation-takaful.116268
- 79.
Press release: “Paris-Dauphine University launches a certificate of Islamic finance at Kedge Business School”, https://kedge.edu/l-ecole/communiques/l-universite-paris-dauphine-lance-un-certificat-de-finance-islamique-a-kedge-business-school
- 80.
See the training course presentation: https://formation.kedge.edu/formations-courtes/gestion-d-actifs-islamiques-assurance-takaful
- 81.
See the different courses proposed by IFAAS at: http://formation.isla-finance.com/
- 82.
Ibidem.
- 83.
Ibidem.
- 84.
Ibidem.
- 85.
Ibidem.
- 86.
See the University Facebook page at: https://www.facebook.com/unefi2015/ and the University trailer: https://www.youtube.com/watch?v=lZKXwvtVlEM&fbclid=IwAR1Q8Cl9tVXOrIAJ-V9W0dmJDNj0Uqks2LWkhNgqCwqEtkjR-29gLFFwDd0
- 87.
Abderrazak Belabes: “Doctoral research on the integration between finance and Islam: the case of France (1902–2011)”, Les cahiers de la finance islamique, n°8, pp. 76–93, p. 82.
- 88.
Ibidem, p. 80.
- 89.
The French Peer-review Journal “Les Cahiers de la Finance Islamique” can be found freely online on the website of the Executive MBA: http://sfc.unistra.fr/finance-islamique
- 90.
Ezzedine Glammallah: “Le mot du président”, IFSO Mag La Tribune de la Finance Islamique, N°1, p. 1.
- 91.
- 92.
- 93.
- 94.
- 95.
- 96.
http://www.pagesḥalāl.fr/
- 97.
- 98.
- 99.
In accordance with this recommendation, we have prepared two books that are being published: our book “Standards of Islamic Financial Investment” and “Introduction to Islamic Finance” that we have translated from English.
Tax instruction 4FE/S4/10” of 23 July 2010, published in BOI n°78, 24 August 2010.
Bibliography
“Adptation du régime de la fiducie afin de permettre l’émission de “Sukuk””, JCPE 2009 Act.322.
Al-Khawarizmi group: Sukūks, A new financing alternative for Morocco, 28 December 2012.
Aynès, Laurent & Crocq, Pierre: “La fiducie préservée des audaces du législateur”, D.2009, 2559.
Barrière, François: “Propriété, fiducie et ṣukūk”, JCPE 2011.1203.
Belabes, Abderrazak: “Doctoral research on the integration between finance and Islam: the case of France (1902–2011)”, Les cahiers de la finance islamique, n°8, pp. 76–93.
Bouslama, Ghassen: “Islamic Finance in Reims Management School”, in Islamic Finance in Western Higher Education by Ahmed Belouafi, Abderrazak Belabes, Cristina Trullols, Palgrave Macmillan, 2012.
Cabinet Labidi: “Assurance spécifique des lieux de culte musulmans en France”, online at: http://www.cabinetlabidi.com/ (accessed on September 25, 2018)
Chaabi Bank: “Convention Chaabi Damanis, Clientèle des particuliers, Conditions générales”, in effect from 01/01/2017, The Islamic Finance Journal: “Damanis, le compte tirelire ḥalāl de Chaabi Bank”.
Chaabi Bank: “La Murābaḥa, Real estate financing compatible with ethical and Islamic finance”, online at: http://www.chaabibank.fr/produit/la-Mourabaha/ (accessed on September 25, 2018)
Charlin, Jacques: “Fiducie, sukuks et autre murabaha ou ijāra, à propos de la finance islamique”, JCPE 2009.1946
CIFIE: “VITIS LIFE lance Amâne Exclusive Life”, en ligne sur: http://www.cifie.fr/vitis-life-lance-amane-exclusive-life/ (accessed on September 25, 2018a)
CIFIE: “1st ṣukūk
for the production of ethical films”, online at: (accessed on September 25, 2018b)Credit Agricole: “Amundi announces the change of name of its CAAM Islamic SICAV into “Amundi Islamic””, press release of 07/09/2010, online at: https://www.credit-agricole.com/finance/finance/communiques-de-presse-generaux/amundi-annonce-le-changement-de-nom-de-sa-sicav-caam-islamic-en-amundi-islamic (accessed on September 25, 2018)
Commission des finance du Sénat: “Rapport d’information”, n°329, online at: https://www.senat.fr/rap/r07-329/r07-3291.pdf (accessed on September 25, 2018)
Commission des finance du Sénat: “Rapport d’information n°33”, 17/10/2007, online at: https://www.senat.fr/rap/r07-033/r07-0331.pdf (accessed on September 25, 2018)
Commission des finance du Sénat: Reports of the two Senate workshops online at: https://www.senat.fr/rap/r07-329/r07-329.html (accessed on September 25, 2018)
General Directorate of French Public Finance: “Murābaḥa Tax Instruction 4FE/S1/10” of 23/07/2010, published in BOI n°78, 24/08/2010.
General Directorate of French Public Finance: “Ṣukūk Tax instruction 4FE/S2/10” of 23/07/2010 published in BOI, N°78, on 24/08/2010.
General Directorate of French Public Finance: “Ijāra Tax instruction 4FE/S3/10” of 23/07/2010, published in BOI n°78, 24/08/2010c.
General Directorate of French Public Finance: “
Tax instruction 4FE/S4/10” of 23/07/2010, published in BOI n°78, 24/08/2010d.El Karoui, Hakim: “Un islam français est possible”, Institut Montaigne & IFOP, Rapport Septembre 2016.
Fiqh cell of the Islamic Center of Reunion: “Communiqué of the fiqh cell of the Islamic Center of Reunion about the reimbursement of the shares of SGAM AI Sharia Liquidity”, March 31, 2009.
Firth, Emily: “CAAM launches its first Shariah Sicav”, 29/09/2009, online at: http://citywireselector.com/news/caam-launches-its-first-shariah-sicav/a359293 (accessed on September 25, 2018)
Gérard Godard & Martin: “Islamic or ethical financing”, Les nouvelles fiscales, n°1069, Juin 2011, p. 18 et s.
Ghlamallah, Ezzedine: “French Islamic finance on 2016”, in Dossier ENASS Papers 11, Banque & Stratégie, n°347.
Ipsos Mori: “Perils of perception 2016”, online at: https://www.ipsos.com/sites/default/files/2016-12/Perils-of-perception-2016.pdf (accessed on September 25, 2018)
Pew Research Center: “The Future of the Global Muslim Population”, online at: http://www.pewforum.org/2011/01/27/the-future-of-the-global-muslim-population/ (accessed on September 25, 2018)
Zaidman: “Searching for new partners to overcome the lack of independence of LEGENDRE PATRIMOINE”, online at: http://palimpsestes.fr/IUT/pmo/pmo2014/pmo-final/E.pdf (accessed on September 25, 2018)
Tax instruction 4FE/S4/10” of 23/07/2010, published in BOI n°78, 24/08/2010d.Press Articles
Al-Baraka Bank: “Al Baraka will open several agencies in France” online at: https://ribh.wordpress.com/2010/09/27/al-baraka-france/ (accessed on September 25, 2018)
“Ethra’a Takāful Famille: the wrong good idea”, published on 05/03/2015, updated on 19/06/2015, en ligne sur: http://lafinanceislamique.com/infos-finance-ḥalāl/etude-ethraa-takāful-famille/ (accessed on September 25, 2018)
“France: Islamic finance to finance the energy transition?” Online at: https://ribh.wordpress.com/tag/legendre-patrimoine/ (accessed on September 25, 2018)
Government issues first Islamic bond, online at: https://www.gov.uk/government/news/government-issues-first-islamic-bond (accessed on September 25, 2018)
“IIIT-France lance une formation en Finance Islamique” on the Journal of Islamic Finance, online at: https://ribh.wordpress.com/2009/09/24/iiit-france/ (accessed on September 25, 2018)
Press release: “Paris-Dauphine University launches a certificate of Islamic finance at Kedge Business School”, https://kedge.edu/l-ecole/communiques/l-universite-paris-dauphine-lance-un-certificat-de-finance-islamique-a-kedge-business-school (accessed on September 25, 2018)
“Real estate financing without riba: new in 2017 at 570easi” on: https://www.al-kanz.org/2017/04/13/financement-immobilier-riba/ (accessed on September 25, 2018)
Swisslife: “Swiss Life lance Salam-Epargne & Placement, le premier contrat d’assurance vie conforme aux principes de la finance islamique”, online at: http://www.swisslife.fr/Le-Groupe/Swiss-Life-en-France/Communiques/Swiss-Life-lance-Salam-Epargne-Placement-le-premier-contrat-d-assurance-vie-conforme-aux-principes-de-la-finance-islamique (accessed on September 25, 2018)
Thouet, Nicolas: “Finance islamique: l’université Paris-Dauphine lance une formation Takaful”, https://www.argusdelassurance.com/acteurs/finance-islamique-l-universite-paris-dauphine-lance-une-formation-takaful.116268 (accessed on September 25, 2018)
World Islamic Economic Forum: Prime Ministers’ speech, online at: https://www.gov.uk/government/speeches/world-islamic-economic-forum-prime-ministers-speech (accessed on September 25, 2018)
Websites
https://www.amundi.fr/ (accessed on September 25, 2018)
https://sfc.unistra.fr/formations/audiovisuel_-_audiovisuel-traduction-interpretariat_-_executive-mba-finance-islamique_-_769/ (accessed on September 25, 2018)
http://www.ifso-asso.com/emba-finance-islamique/ (accessed on September 25, 2018)
http://www.pagesḥalāl.fr/
https://formation.kedge.edu/formations-courtes/gestion-d-actifs-islamiques-assurance-takaful (accessed on September 25, 2018)
https://formation.kedge.edu/formations-courtes/gestion-d-actifs-islamiques-assurance-takaful (accessed on September 25, 2018)
https://www.youtube.com/watch?v=lZKXwvtVlEM&fbclid=IwAR1Q8Cl9tVXOrIAJ-V9W0dmJDNj0Uqks2LWkhNgqCwqEtkjR-29gLFFwDd0 (accessed on September 25, 2018)
http://www.noorassur.com/nos-produits-finance-islamique.php (accessed on September 25, 2018)
https://ribh.wordpress.com/tag/chaabi-harmonis/ (accessed on September 25, 2018)
https://ieshdeparis.fr/formation-certificat-de-finance-islamique/
Author information
Authors and Affiliations
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2019 The Author(s)
About this chapter
Cite this chapter
Hajjar, M. (2019). Status of Islamic Finance in France in 2019. In: Hajjar, M. (eds) Islamic Finance in Europe. Palgrave Studies in Islamic Banking, Finance, and Economics. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-04094-9_5
Download citation
DOI: https://doi.org/10.1007/978-3-030-04094-9_5
Published:
Publisher Name: Palgrave Macmillan, Cham
Print ISBN: 978-3-030-04093-2
Online ISBN: 978-3-030-04094-9
eBook Packages: Economics and FinanceEconomics and Finance (R0)