islamic finance - arendt & · pdf fileluxembourg: a hub for islamic finance 7 iv. ......

islamic finance

Table of contents

I. Definitions 5

II. Introduction 6

III. Luxembourg: a hub for Islamic finance 7

IV. Luxembourg opportunities: meeting Islamic finance needs 8

A. Investment funds and other regulated vehicles 8

1. Main Luxembourg regulated vehicles 8

2. Application of Shari’ah to Luxembourg regulated schemes and vehicles 9

3. Tax efficiency 10

B. Unregulated vehicles 11

1. Description 11

2. Tax efficiency 12

C. Sukuk 14

1. Sukuk Issuance 14

2. Listing of Sukuk 16

V. Arendt & Medernach Islamic finance expertise 17

Arendt & Medernach Islamic finance team 19

About Arendt & Medernach 20

A broad range of practice areas

5

I. Definitions

AAOIFI Accounting and Auditing Organisation for Islamic Financial Institutions

Company Law Law dated 10 August 1915 on commercial companies, as amended

CSSF Luxembourg regulatory authority, Commission de Surveillance du Secteur

Financier

EU European Union

EU Prospectus DirectiveDirective 2003/71/EC of the European Parliament and of the Council dated 4

November 2003 on the prospectus to be published when securities are offered to

the public or admitted to trading and amending directive 2001/34/EC, as amended

EU Savings DirectiveDirective 2003/48/EC of the European Council dated 3 June 2003 on taxation of

savings income in the form of interest payments

EU Transparency Directive

Directive 2004/109/EC of the European Parliament and of the Council dated 15

December 2004 on the harmonisation of transparency requirements in relation

to information about issuers whose securities are admitted to trading on a

regulated market and amending Directive 2001/34/EC, as amended

FCP Common fund (fonds commun de placement)

Fund LawLaw dated 17 December 2010 on undertakings for collective investment, as

amended

IFRS International Financial Reporting Standards

IFSB Islamic Financial Services Board

Ijara Islamic lease

Istisn’a Islamic contract of manufacturing for purchase

LuxSE Luxembourg Stock Exchange

Mudaraba Islamic profit-sharing contract

Murabaha Islamic cost-plus financing contract

Musharaka Islamic partnership financing contract

PFSProfessional of the financial sector, as defined in the law dated 5 April 1993 on

the financial sector, as amended

Securitisation Law Law dated 22 March 2004 on securitisation, as amended

SICAR Investment company in risk capital (société d’investissement en capital à risque)

SICAR Law Law dated 15 June 2004 on the investment company in risk capital, as

amended

SIF Specialised investment fund

SIF Law Law dated 13 February 2007 on specialised investment funds, as amended

SOPARFI Financial holding company (société de participations financières)

SPV Special purpose vehicle

Sukuk Islamic bonds

UCI Undertaking for collective investment

UCITS Undertaking for collective investment in transferable securities

VAT Value added tax

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II. Introduction

Islamic or Shari’ah-compliant finance is often considered as an alternative to conventional banking and finance.

Islamic finance transactions and structures comply, amongst others, with the principles deriving from the Qu’ran and the Sunnah and in particular with:

n Riba, i.e. the balance between income gained and risks taken, which prohibits interests and unjust enrichment;

n Gharar, i.e. the prohibition of speculation and uncertainty, which prescribes that the elements of a contract must be pre-determined;

n Haram (as opposed to Halal), i.e. the prohibition of unethical behaviours and investments, such as those relating to gambling, alcohol and pork products.

To ensure compliance with the principles of the Shari’ah, banks, asset managers, insurers, etc. have recourse to the screening of their activities by so-called Shari’ah boards, i.e. boards of Shari’ah scholars, or Shari’ah advisors, who advise on the compliance with and the permissibility of a structure or transaction under Shari’ah law.

Various international bodies have been created in recent years with a view to establishing Shari’ah governance principles. Based in Bahrain, the AAOIFI is an autonomous not-for-profit corporate body which prepares accounting, auditing, governance, ethics and Shari’ah standards for Islamic financial institutions and the Islamic finance industry at large.

Islamic corporate governance is also ensured by the Islamic Financial Services Board (IFSB), a Kuala Lumpur- based international body, which sets global prudential standards and guiding principles for the financial industry, in compliance with the Shari’ah.

While remaining most significant in the Middle-East and South-East Asia, interest in Islamic finance is increasing in Western countries, as Islamic finance meets the needs of Muslim populations and offers an alternative to conventional finance.

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Luxembourg authorities have always proven to be open-minded and, to the extent permissible by law, flexible. Islamic finance transactions (which involve sharing of profits and of potential risks and/or losses and which favour long-term vision and partnership), will therefore generally find an appropriate legal and economical environment in Luxembourg.

Islamic finance has thus contributed to the development of the Luxembourg financial centre, which has become a centre of expertise for Islamic finance and, in particular, a domicile of choice for Shari’ah-compliant investment structures.

Luxembourg has achieved a significant track record in Islamic finance, benefiting from the strong support of market participants and authorities alike to further position Luxembourg on an international scale.

III. Luxembourg: a hub for Islamic finance

LuxSE

- 1st listing market;

- 46% international bonds;

- 105 differents countries;

- 16 listed Sukuk since 2002;

- Issuers from Saudi Arabia, Malaysia, UAE, Pakistan, etc.

Luxembourg Central Bank: Member of IFSB

- 1st Shari’ah-compliant Insurance Company

- Domicile of a leading Takaful provider

- N° 1 for global fund distribution

- 77% of foreign funds registered in Bahrain are Luxembourg funds

37 Shari’ah-compliant Luxembourg investment funds/sub-funds

8

Luxembourg opportunities: meeting Islamic finance needs

IV.

The current Luxembourg legal framework provides for the implementation of the main Islamic finance transactions and structures:

n an Islamic financial institution may enter into a contractual relationship with its counterparty, for example in the form of a Murabaha, Musharaka, Mudaraba or Ijara, in which its prospective income is tied to the underlying transaction and takes the form of a share of profit rather than a spread;

n in order to have access to medium to long-term capital debt, a company or government may consider the issuance of Sukuk, an independent vehicle established in a tax-efficient jurisdiction;

n funds may also become Shari’ah-compliant by investing in instruments that earn profits in ways that are deemed Halal, ranging from investments in equities, Sukuk, and commodities to real estate.

Luxembourg is a prime location for the setting-up of Shari’ah-compliant investment vehicles. The Luxembourg authorities have always supported a stable and fiscally efficient investment environment that encourages companies and financial institutions to perform Shari’ah-compliant investments through Luxembourg vehicles.

Luxembourg thus offers a wide range of regulated and unregulated vehicles to structure Shari’ah-compliant investments. The Luxembourg tax system is another key factor when considering how to structure an investment and whether to use a regulated or unregulated vehicle.

A. Investment funds and other regulated vehicles

1. Main Luxembourg regulated vehicles

Different types of regulated investment vehicles are available, depending on the types of investors or invest-ments targeted. All vehicles can be set up under an incorporated or contractual form or as a partnership. In addition, Luxembourg law offers the flexibility to create multi-compartment structures, whose assets and liabilities are legally segregated.

In particular, Shari’ah compliance may be easily achieved in respect of investment funds investing in equi-ties of companies which are not involved in any Haram activities. In this respect cleansing mechanism for income derived from Haram investments may be implemented.

Luxembourg is ranked in the top five Islamic fund domiciles worldwide.

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Luxembourg opportunities: meeting Islamic finance needs

Comparison of the main regulated investment schemes and vehicles:

UCITS SICAR SIF

UCITS governed by Part I of the Fund Law are highly regulated collective investment schemes which can only invest in eligible securities and assimilated assets. UCITS can be marketed throughout the EU and, to a certain extent, worldwide.

UCITS are i.a. intended for promoters and asset managers wishing to launch Shari’ah-compliant retail fund products investing in particular in listed equites.

SICARs are governed by the SICAR Law and offer a dedicated legal, regulatory and tax framework for private equity and venture capital investments.

SICARs can only be placed with or distributed to institutional, professional and certain qualifying investors.

SIFs are governed by the SIF Law and provide for a collective investment scheme for all asset classes and strategies (i.e. hedge funds, private equity or real estate funds, etc.)

SIFs can only be placed with or distributed to institutional, professional and certain qualifying investors.

2. Application of Shari’ah to Luxembourg regulated schemes and vehicles

Shari’ah-compliant vehicles and structures require certain features which can easily be integrated into Luxembourg domiciled investment schemes and vehicles.

n Prohibition of Haram activities

Criteria for selecting the investments of the vehicle and excluding Haram activities may also be provided as the basis of the investment policy of any investment vehicle.

n Purification of Haram income

Purification processes are commonly accepted by Luxembourg authorities and implemented by service providers. This process is usually described in the sales documentation.

n Specific investment limits

Exclusion of Riba may be ensured by setting defined ratios for illiquid assets.

The prohibition of Gharar may also be achieved through express investment restrictions included in the sales documents.

n Shari’ah board

A Shari’ah board may be appointed in any type of Luxembourg regulated scheme or vehicle, permitting the screening and validation of the investment activities in accordance with Shari’ah principles.

IV. Luxembourg opportunities: meeting Islamic finance needs

Shari’ah boardBased in UAE, Malaysia,

etc.

AdministratorCalculation of net asset

value; preparation of reports

Regulated Vehicle

Investment ManagerMakes investment

decisions

Custodian

Responsible for the custody of the fund

To be located in the country of the UCITS

Distributor

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3. Tax efficiency

UCITS and SIFs are exempt from corporate income and net worth tax, but are subject to an annual subscription tax of up to 0.05% (0.01% for SIFs and UCITS under certain conditions) of the aggregate net asset value of the relevant fund as valued on the last day of each quarter. Certain exemptions apply.

A distinction must be made between UCITS and SIFs set up as corporations and those set up as FCPs. Double tax treaties entered into by Luxembourg are not applicable to FCPs, but double tax treaties concluded between the country of residence of the investor and the country of the investment may be applicable on a look-through basis. For corporate fund vehicles, protection will be available through a significant number of double tax treaties.

In respect of SICARs, a distinction must be made between SICARs set up as corporations and those set up as partnerships. Corporate SICARs are fully-taxable resident companies but income derived from risk capital securities or from the transfer, contribution or liquidation of such securities does not constitute taxable income for corporate income tax purposes. They also benefit from a net worth tax exemption. SICARs are generally eligible for the domestic participation exemption regime and double tax treaties. SICARs set up as partnerships are transparent for corporate income tax purposes while profits realised by them are taxed in the hands of the investor.

Non-resident investors are generally not subject to capital gains, income or withholding tax1 in Luxembourg by their sole investment in these vehicles.

1 Except when the EU Savings Directive, as implemented into Luxembourg law, is applicable provided that the beneficiary does not elect for an exchange of information.

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B. Unregulated vehicles

1. Description

n Types of vehicles

Luxembourg is one of Europe’s primary locations for setting up intermediary vehicles for holding, financing, leasing, managing intellectual property (IP) and trading. These vehicles are commonly referred to as financial participation companies, under the acronym “SOPARFI”. Such entities are fully-taxable companies. SOPARFIs are not subject to any investor qualification, do not require any risk diversification and are not under the supervision of the CSSF.

In addition, Luxembourg offers family wealth management companies which are dedicated to private investors (i.e. investors managing their private wealth) and which benefit from a specific tax regime. These are investment vehicles tailored for wealthy individual investors who wish to pool their assets in a tax efficient European on-shore vehicle.

n Main Luxembourg legal requirements

These vehicles are governed by the Company Law and may be incorporated under any corporate form, such as a public limited liability company (société anonyme - SA), a private limited liability company (société à responsabilité limitée - SARL), a corporate partnership limited by shares (société en commandite par actions - SCA) or a limited liability partnership (société en commandite simple - SCS). In practice, public and private limited liability companies are the preferred corporate forms.

nPrivate equity case study

Luxembourg is the leading European hub for the structuring of private equity and real estate investments in and beyond Europe. In the transaction illustrated below, Middle-Eastern investors and an Islamic investment bank have structured their Shari’ah-compliant transactions using Luxembourg SPVs. The two-tier Luxembourg structure is used to meet Turkish beneficial ownership requirements, take advantage of the double tax treaty concluded between Turkey and Luxembourg and reduce the withholding tax rate from 15% to 10%.

Private Equity: Shari’ah-compliant transaction in Turkey:

Turkey Equity FundTurkey Real Estate

CompanyTurkey Private

Equity Company

CaymanCo 1

LuxCo 1

CaymanCo 2

LuxCo 2

Murabaha

Equity and MudarabaStructured to reduce taxation at the level of LuxCo 1

Equity, Qard Al Hassan and Murabaha Structured to minimise taxation

Investment Bank and Investors

Investment Bank and InvestorsEquityEquity

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nReal estate case study

Real estate is one of the assets most favoured by Islamic investors as it is well suited for a variety of Islamic instruments. The charts below are classic examples of structures set up for Middle-Eastern investors regarding the acquisition of real estate located in Europe. The acquisition is financed with interest-free and profit-participating loans for tax efficiency purposes and Shari’ah compliance.

Qatar

LuxCo

ItalyCo

Qatar

LuxCo

FrenchCo

Shareholder Loan

Equity (1%)Convertible loan

(99%)

Shareholder Loan

TargetJurisdiction

Luxembourg

IFL

PPLandIFL

GCC

The choice of a Luxembourg SPV for the structuring of Shari’ah-compliant investment structures, together with efficient tax planning, generally ensure a limited tax burden.

2. Tax efficiency

Luxembourg tax laws are based on an economic approach (known as “wirtschaftliche Betrachtungsweise”) and the substance over form principle allows Luxembourg tax laws to accommodate Islamic investments without (or with limited) need for specific legislation.

Concepts such as fiduciary contracts (comparable to the concept of trust under common law) provide for a distinction between legal and economic ownership and ensure appropriate and flexible tax planning.

On 12 January 2010 the Luxembourg tax authorities issued a circular on Shari’ah-compliant investments describing the main principles of Islamic investments and their tax treatment in Luxembourg. On 17 June 2010 a further circular was issued by the Luxembourg tax authorities specifically relating to the tax treatment of contracts qualifying as Murabaha and Ijara.

Even though Luxembourg fully-taxable companies are currently subject to corporate income tax on their worldwide profits (subject to the provisions of double tax treaties) at a maximum aggregate rate of 28.80% (for companies located in Luxembourg City) per annum and to an annual net worth tax at a rate of 0.5% computed on their net asset value, lower taxation can generally be achieved through appropriate tax planning.

The family wealth management company is exempt from corporate income taxes and net worth tax but is subject to a subscription tax of 0.25% applied on its net asset value capped at EUR 125,000 per annum.

Non-resident investors are not subject to any withholding tax on interest in Luxembourg (subject to the application of the EU Savings Directive).

Fully-taxable companies allow for a flexible and efficient structuring.

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Indeed, some of the financing instruments used for Islamic investments (e.g. Murabaha and Mudaraba) may be considered debt instruments from a Luxembourg direct tax perspective, allowing the deductibility of interest payments on the one hand and a withholding tax-free repatriation of income derived from the underlying investment on the other. In addition, the withholding tax on other payments (e.g. dividends) may generally be reduced through the application of a double tax treaty, if available. The repatriation of profits in case of disposal of the target may also occur without any exit taxation as distributions of liquidation proceeds are, as a rule, not subject to any withholding tax in Luxembourg.

The main advantages of using Luxembourg resident fully-taxable companies (i.e. SOPARFIs) are:

n the participation exemption regime for corporate income tax on dividend income and capital gains as well as for net worth tax purposes and outbound dividend payments;

n the taxable base of Luxembourg-resident companies may be reduced in particular via several tax incentives such as the intellectual property tax regime which provides for an 80% exemption of income and capital gains derived from a wide range of intellectual properties rights such as copyrights on software, patents or trademarks;

n interest payments made by Luxembourg companies to non-resident investors are generally considered deductible expenses for corporate income tax purposes and are not subject to withholding tax in Luxembourg (subject to the EU Savings Directive);

n Luxembourg entities may be financed through a variety of debt, equity and hybrid instruments to ensure a tax-efficient structure at the level of the investment, the Luxembourg entity and the investors;

n Luxembourg does not generally tax non-resident investors, thus allowing for an appropriate repatriation mechanism for Shari’ah-compliant investments structures; and

n the VAT rate of 15% is the lowest standard VAT rate within the EU.

From an international perspective, Luxembourg benefits from a well-developed double tax treaty network which helps to avoid or reduce double taxation in cross-border investment structures.

There are 64 treaties currently in force and 21 additional treaties are under negotiation or awaiting ratification. Besides treaties with major countries in Europe, as well as the United States, China, Hong Kong and India, Luxembourg has recently extended its double tax treaty network with i.a. the following countries:

Treaties in force Treaties under negotiation or awaiting ratification

Bahrain Albania

Indonesia Egypt

Malaysia Kazakhstan

Morocco Kirgizstan

Uzbekistan Kuwait

Tunisia Lebanon

Turkey Oman

United Arab Emirates Pakistan

Qatar Saudi Arabia

Syria

Tajikistan

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C. Sukuk

1. Sukuk Issuance

Sukuk are generally regarded as the Shari’ah-compliant alternative to bonds. Sukuk are always linked to an underlying asset and grant the investor a share of the asset along with profits and risk resulting from such ownership. While there are 14 types of Sukuk specified by AAOIFI, only a few Sukuk types are commonly used. Most Sukuk are structured on the basis of a contract of exchange (e.g. Murabaha, Ijara or Istisn’a) or a contract of participation (e.g. Musharaka or Mudaraba).

The Luxembourg legal framework provides for a variety of investment vehicles that may be considered suitable for the issuance of Sukuk. However one specific legal framework has proved to be particularly beneficial for the creation of innovative Sukuk structures, namely the Securitisation Law.

The Securitisation Law was created for securitisation transactions and offers the most complete, comprehensive and advantageous legal framework in Europe today. It is also the first Securitisation Law in Europe which was specifically designed for cross-border securitisations.

The main goals are to allow for a high degree of flexibility when structuring a securitisation transaction via Luxembourg, to ensure a high level of protection and legal certainty for investors as well as a tax-neutral treatment in Luxembourg. The Securitisation Law covers basically all types of securitisation transactions, in the broadest meaning of the term, ranging from term transactions and commercial paper conduits to simple repackaging, regardless of the type of asset classes, providing the concept of securitisation with a very flexible scope so as to cover both traditional securitisation structures as well as the most innovative ones.

A large number of securitisation vehicles allowing for the creation of compartments are also available. The legal framework has proven its flexibility in Shari’ah-compliant transactions allowing in particular for the establishment of innovative Sukuk structures.

An illustration of Sukuk structures using unregulated Luxembourg issuance vehicles is outlined below.

n Mudaraba and Musharaka Sukuk structures

Mudaraba Sukuk are based on a Mudaraba agreement, according to which one party provides the entire capital for the project and has no control over the management of the project. Another party, known as the Mudarib, manages the project using his entrepreneurial skills. Profits from the project are distributed according to predetermined ratios and financial losses are borne by the capital provider. Sukuk holders are considered to be owners of common shares in the Mudaraba capital and of all related benefits and returns in proportion to their respective ownership in the capital.

The Musharaka structure is intended to replicate asset ownership by setting up a joint-venture, which is owned by the Sukuk issuer and the originator. The only difference between Mudaraba and Musharaka Sukuk lies in the relationship between the Sukuk manager and the Sukuk holder.


15


In the example of a Mudaraba or Musharaka Sukuk structure below, a Luxembourg SPV is used to issue Sukuk al Mudaraba or Sukuk al Musharaka linked to the underlying Islamic contract.

Partners(Mudarib/Musharik)

Investors(Sukuk Holders)

LuxembourgSPV

Shari’ah-compliant Agreement (Mudaraba/

Musharaka)

Shari’ah-compliant Project

Sukuk

Issuing Sukuk

Risks (returns or possible losses)

n Sukuk al Ijara structure

The majority of Sukuk seen to date have been of a simple leasing or Ijara nature. In such structures, the originator seeking financing sells the asset to an SPV for a value equal to the financing provided, and then leases it back. The lease payments provide the fixed income stream. The Sukuk al Ijara are title deeds of equal shares in the leasing project, giving their holders the right to own shares, receive rental fees and dispose of their properties without affecting the lessee’s rights. In the example of an Ijara structure below, the Luxembourg SPV acquires the risk relating to rental payments and issues Sukuk al Ijara to the investors. The Sukuk could then be listed on the LuxSE.

Investors(Sukuk Holders)

LuxembourgSPV

Occupational Tenants

Sukuk Payments Rent

Rent Occupational Tenant Lease

Sukuk al ljara Lease (Ijara)

Project Company

n Sukuk issuance platform case study

The Luxembourg legal framework provides for the establishment of Sukuk issuance platforms, allowing multiple market participants, both Islamic and conventional, to become originators and issue Islamic money market, structured and capital market products.

The issuer is generally established as a securitisation vehicle under Luxembourg law, with each issue of Shari’ah-compliant notes and certificates made by a separate ring-fenced compartment. The originator of the Sukuk acts as an arranger and undertaking counterparty in respect of the relevant compartment. The proceeds of each series of Sukuk are deposited into segregated securities accounts held with a custodian in the name of the relevant compartment of the issuer.

16


The certificates issued through the platform are tradable Islamic securities, representing ownership in tangible Shari’ah-compliant assets. The independent Islamic investment manager generates returns (payable to the Sukuk holders) by selling those assets for a benchmarked sales price to an unrelated party.

The illustration below shows how the features of the Securitisation Law can be used for such an innovative Shari’ah-compliant platform, while embedding it into a fiduciary framework, in order to maximise investor protection. Overall, these platforms have set a new standard in Sukuk issuance.

Undertaking Counterparty

Islamic Investment Account

Securitisation Undertaking

Investors/Depositors Investment Manager

Shari’ah Monitor

Market

Periodically monitors Shari’ah

compliance

Investment Management Agreement

Shari’ah-compliant shares

Cash

PUD2 SUD3

SettlementSecurities

Proceeds

CommitmentAmounts

2. Listing of Sukuk

Luxembourg is a prime venue for the listing of Sukuk. The LuxSE offers broad listing options via its two markets, the regulated market and the Euro MTF. The former is an EU regulated market and issuers of securities listed and admitted to trading thereon are most notably subject to the requirements of the EU Prospectus and Transparency Directives.

The two most common structures used are the following:

n Sukuk issuance where the periodic distributions and reimbursement rely primarily on the underlying assets thereof;

n Sukuk issuance where the periodic distributions and reimbursement are based on the underlying assets thereof but investors primarily rely on the undertaking of one or more entities for the payments to be made in respect of the Sukuk.

2 Purchase Undertaking Deed (PUD)3 Sale Undertaking Deed (SUD)

17

V. Arendt & Medernach Islamic finance expertise

Our Islamic Finance team represents Islamic and non-Islamic banks as well as financial institutions and asset managers throughout the entire value chain of commercial Islamic finance products.

Recent achievements include:

n advising the lenders in respect of senior and mezzanine Murabaha facilities in the context of the leveraged buy-out of a group in the United Kingdom by an Islamic bank;

n advising one of the largest publicly traded US asset managers in relation to a Shari’ah-compliant USD 400 million acquisition of a Canadian group of companies by means of a Tawarruq structure;

n advising lenders with regard to the Shari’ah-compliant financing of a mixed-used development in the United Kingdom;

n advising an institutional client from Kuwait on the Luxembourg aspects of a GBP 128 million commodity Murabaha relating to the financing of one of the highest towers in the City of London;

n advising a privately held investment company from Saudi Arabia on the Shari’ah-compliant financing of a shopping mall in Berlin;

n advising a Shari’ah-compliant investment company from Qatar on the Luxembourg aspects of the acquisition of five-star hotels in Milan and Paris;

n advising a UK based Shari’ah-compliant alternative investment manager on the establishment of a Luxembourg domiciled Islamic funds platform;

n advising a Qatar based Islamic investment bank with regard to the Shari’ah-compliant acquisition of a healthcare company in Turkey;

n advising a Bahrain based Islamic investment bank on the Luxembourg aspects of an acquisition of a real estate company, a private equity company and an equity fund in Turkey by means of using Murabaha, Mudaraba and Qard Al Hassan;

n advising various investors, including a Takaful provider, with respect to their investment in a Shari’ah-compliant investment product issued from a Sukuk issuance platform in Luxembourg;

n advising various Islamic banks and investment companies from the GCC on their international real estate and private equity transactions;

n advising a UK based Shari’ah-compliant bank with regard to the creation of sub-funds within a SIF;

n advising French asset managers on their Shari’ah-compliant UCITS sub-funds tracking Shari’ah-compliant indices.

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V. Arendt & Medernach Islamic finance expertise

Our expertise has grown through the presence of many of our lawyers on committees and working groups of Luxembourg authorities and business associations dedicated to Islamic finance and, more generally, through the close relationships which we have developed with the Luxembourg authorities over the years.

In addition, our Dubai office enhances our ability to work on Islamic finance transactions, as it is at the heart of the development of Islamic finance, well connected with the regional Islamic finance players and able to assist our clients from the Middle East during local working hours.

As Luxembourg’s largest full service law firm, we can assist in the setting-up of fully Shari’ah-compliant financing or investment structures to be backed up by Shari’ah-compliant financial service providers.

Arendt and Medernach is also a founding member of iSfin, a global network of independent law firms specialising in Islamic finance.

Gilles Dusemon, Partner Investment FundsTel: (352) 40 78 78 921

Email: [email protected]

Guy Harles, Partner Investment FundsTel: (352) 40 78 78 204


Florence Stainier, PartnerInvestment FundsTel: (352) 40 78 78 657


Bishr Shiblaq, Head of DubaiRepresentative OfficeTel: (971) 44 34 88 96


www.arendt.com © Arendt & Medernach 2012

Arendt & MedernachIslamic finance team

Our Islamic finance team is supported by our tax team:

Eric Fort, PartnerTel: (352) 40 78 78 306


Bruno Gasparotto, PrincipalTel: (352) 40 78 78 909


Alain Goebel, PartnerTel: (352) 40 78 78 512


Thierry Lesage, PartnerTel: (352) 40 78 78 328


Arendt & Medernach is a leading, independent, full-service law firm with its head office in Luxembourg. The firm’s international team of more than 290 legal professionals provides Luxembourg law related services to clients from offices in Luxembourg, Brussels, Dubai, Hong Kong, London, Moscow and New York.

Our philosophy is expressed through our five values: vision – commitment – people – independence – energy. We strive for excellence in order to achieve the best results for our clients and we always look for creative solutions.

Our specialised practice areas allow us to offer our clients a complete range of services tailored to their individual needs across all areas of business law.

In order to provide our clients with unparalleled legal advice, we have developed specific expertise in five key industry groups: Banking & Insurance, Investment Management, Multinational Companies and Public Sector, Private Equity, Real Estate. These industry groups possess a deep understanding of our clients’ businesses from a commercial, economic and legal standpoint.

About Arendt & Medernach

A broad range of practice areas

Administrative Law, Property &

Construction

Bank Lending & Structured

Finance

Banking & Financial Services Capital Markets

Corporate & Tax Compliance

Services

Corporate Law, Mergers &

Acquisitions

Dispute Resolution

Employment Law, Pensions

& Benefits

EU &Competition Law Insolvency

Insurance & Reinsurance Law Tax Law

IP, Commercial, Communication & Technology

Private WealthInvestmentFunds

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