Abstract
The research looks at the possible advantages of which Italian companies and public entities could benefit looking at Islamic finance as a viable alternative to conventional finance, in a context characterized by a growing presence of Islamic citizens throughout Europe and Italy and by increasing interest in investing in Italy by Islamic investors. The research investigates the possibility for an Italian entity (corporate or sovereign) to issue a sukuk with a national real-estate underlying, under the current legal, fiscal and technical framework. The aim is to concretely contribute to the awareness about the opportunities that Islamic finance could bring with it and to promote fiscal, normative and regulatory obstacles removal, in order to create a level playing field—as the United Kingdom did—that would allow Islamic finance to develop also in Italy.
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Notes
- 1.
Sections “Islamic Finance: Global Trends and Development in Europe” and “Islamic Finance in Italy: Possible Benefits and Main Challenges Towards Companies Internationalization and Foreign Capital Investments” are by Giorgio Carlo Brugnoni. Section “Engineering of Sukuks for Public and Private Italian Entities” is by Antonio Salvi, Fabrizio Petrucci and Paolo Gaspare Conforti di Lorenzo. Section “Islamic Real Estate Funds and Investments” is by Massimo Mariani, Lorenzo Lentini and Raffaele Didonato. Section “Islamic Italian Stock-Index: A New Methodology to Build an Italian Listed Company Sharia-Compliant Portfolio” is by Claudio Palandra. Section “Financing Italian SMEs: May Be Sukuks Considered as a Viable Alternative?” is by Alessandra Tami. Section “Italian Tax System and Sukuks: Fiscal Challenges Towards a More Level Playing Filed” is by Enrico Giustiniani.
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Al Rayan Bank, Bank of London and Middle East, European Islamic Investment Bank, Gatehouse Bank, Qatar Islamic Bank UK, Abu Dhabi Islamic Bank UK (KFH Research Limited 2014).
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Ahli United Bank, ABC International Bank, Barclays, BNP Paribas, Bristol & West, Citibank, Deutsche Bank, United National Bank, Europe Arab Bank, HSBC Amanah, Lloyds Bank, Royal Bank of Scotland, Standard Chartered (KFH Research Limited 2014).
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Acknowledgements
This research is by the Islamic Finance Working Group of the Italian Association of Financial Analysts and Advisors. We thank Studio Legale Delfino e Associati Willkie Farr & Gallagher LLP, in particular Fabrizio Petrucci and Paolo Gaspare Conforti di Lorenzo, for their precious support.
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Brugnoni, G.C. et al. (2017). Islamic Bonds and Real Estate Securitizations: The Italian Perspective for Issuing a Sukuk. In: Bilgin, M., Danis, H., Demir, E., Can, U. (eds) Empirical Studies on Economics of Innovation, Public Economics and Management . Eurasian Studies in Business and Economics, vol 6. Springer, Cham. https://doi.org/10.1007/978-3-319-50164-2_1
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