The specialised investment fund, incorporated as a Luxembourg Sicav at the initiative of SEDCO Capital (part of the Jeddah-based SEDCO Holding group of companies) is a fund with multiple sub--‐funds and is set to reach over 1 billion dollars within the first year after launch.
The fund is Shari’ah-compliant. A recent study by Luxembourg for
Finance showed that assets held by fund structures investing according
to Shari’ah principles reached 2 billion dollars at 31 December 2011.
Just under half of this money was held in regulated investment funds with the balance in unregulated structures and securitisation vehicles. Consultants indicate that further projects are in the pipeline.
Luxembourg has been actively promoting its services to Shari’ah-compliant investment structures since 2008 and ALFI, the investment fund association, has a dedicated working committee. (source)
While Islamic funds are still a niche product compared to the 2,200 billion euros held in traditional investment funds, this is considered a market with important potential for the years to come. Luxembourg is also contributing at an international level.
As a member of the Islamic Financial Services Board (IFSB) the Luxembourg Central Bank contributed to a recently published set of Guiding Principles on Liquidity Risk Management for institutions offering Islamic financial services.
Luxembourg specialises in the structuring, management and cross-border distribution of financial products and services.
This expertise, combined with suitable legal structures and the growing experience of local service providers, is attracting an increasing number of specialised asset managers to
Luxembourg, including Islamic finance experts. In 2009, Luxembourg for Finance set up a Task Force to monitor developments of all areas in Islamic finance, including banking products and insurance.
One of its roles is to identify and resolve factors that might hinder the natural development of this market.
Source: http://www.cpifinancial.net/news/post/13993/luxembourg-launches-islamic-fund - May 14, 2012
Just under half of this money was held in regulated investment funds with the balance in unregulated structures and securitisation vehicles. Consultants indicate that further projects are in the pipeline.
Luxembourg has been actively promoting its services to Shari’ah-compliant investment structures since 2008 and ALFI, the investment fund association, has a dedicated working committee. (source)
While Islamic funds are still a niche product compared to the 2,200 billion euros held in traditional investment funds, this is considered a market with important potential for the years to come. Luxembourg is also contributing at an international level.
As a member of the Islamic Financial Services Board (IFSB) the Luxembourg Central Bank contributed to a recently published set of Guiding Principles on Liquidity Risk Management for institutions offering Islamic financial services.
Luxembourg specialises in the structuring, management and cross-border distribution of financial products and services.
This expertise, combined with suitable legal structures and the growing experience of local service providers, is attracting an increasing number of specialised asset managers to
Luxembourg, including Islamic finance experts. In 2009, Luxembourg for Finance set up a Task Force to monitor developments of all areas in Islamic finance, including banking products and insurance.
One of its roles is to identify and resolve factors that might hinder the natural development of this market.
Source: http://www.cpifinancial.net/news/post/13993/luxembourg-launches-islamic-fund - May 14, 2012
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