Paris Seeks to Become Capital of Islamic Finance

by Tracy McNicoll

French politics might live uneasily with Islam–battling over burkas, sparring over veils–but French economists are keen to make Islamic finance a crisis buster in Paris. Finance minister Christine Lagarde is trying to attract Islamic banking, which has grown 10 to 15 percent a year since 2003 to become a global industry totaling more than $700 billion today. That’s a smart move: the global economic meltdown has made Sharia-compatible finance especially attractive. Islamic banking eschews much of the risky behavior that brought conventional finance to its knees, including speculation; it also prohibits interest, helping to prevent debt spirals. And since it favors long-term investment in real estate and infrastructure, it could provide much-needed cash for France’s economy. A 2008 report for lobbying group Paris Europlace argued France could become a global leader in the field, drawing $145 billion in capital by 2020 and challenging London’s current dominance in the West. To create a market in France, Lagarde is working to smooth out the remaining tax and legal obstacles to full Sharia-friendliness. Insiders think her friendly signals to Muslim investors abroad will outweigh her colleagues’ burka bouts.

Source: Newsweek

Advertisements

About Islam Cafe

Assalam alaikum. Dear Brothers and Sisters in Islam. Islam Café is a virtual Café, a meeting point and a kind of virtual library for intel
This entry was posted in Islamic Finance, News. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s