Capturing Growth Opportunities for Ireland and the EU through Islamic Capital Markets
Islamic Finance is tax neutral vis a vis conventional finance in Ireland per the Finance Act 2010 and Finance Act 2012; and the industry was identified as a Growth Opportunity in the Government’s International Financial Services Industry Strategy document 2011 – 2016.
Ireland is the European home of many of the world’s top international companies. The Industrial Development Agency (IDA) of Ireland, the Irish government’s entity responsible for attracting foreign direct investment has over 1,000 client companies on its books and over 250 of these are major financial services companies that are looking for new sources of funding.
For Ireland, the sweet spots for Islamic Finance are 1. Infrastructure and government projects, 2.Energy and 3. Aviation
- Infrastructure and government projects: The Irish government is privatising parts of its energy infrastructure through an investment vehicle called NewERA. The assets for sale are ostensibly Shariah-compliant. Separately, Real Estate Investment Trust (REIT) legislation was included in the 2013 Finance Bill for the first time paving the way for the National Asset Management Agency to potentially exit some of its assets through the REIT structure.
- Energy: Energy generation is a capital intensive business that requires a government off-take agreement. The UK is looking to site windfarms in Scotland or Ireland. In addition, there have been Oil and Gas finds off the Irish coast. Shariah compliant funding can be utilised in financing all of the above industries.
- Aviation: Over 50% of the world’s commercial aircraft fleet is managed from Ireland (USD $83 Billion in assets). Ireland is the location of key decision makers in most of the top aircraft lessors in the world. With many conventional banks retrenching at the moment and air passenger numbers only going one way, the world’s commercial fleet will need funding from other sources. Typically the tenor of new narrow bodied aircraft is 12 years. This longer term paper will be of interest to numerous overseas pension funds. Kuwait Finance House will talk about their work in this sector.
As we all know, money is agnostic and Shariah-complaint financing merely opens the door for companies or projects to obtain financing from another source. Diversifying your funding sources makes commercial sense.
Join us to see how your company can tap into the vast pool of liquidity in the GCC region, the Far East and beyond.
Key issues discussed at DIFF 2013
- Islamic Finance within the International Financial Services Industry Strategy document 2011 - 2016
- Critical Success Factors of Islamic Funds in European Jurisdictions
- Analytical tools for the Asset management and Pensions industry
- Risk Analytics for Lending into the SME sector
- Opportunities and Challenges of Financing the SME sector
- Aviation Financing through the Islamic Capital Markets.
- Matching Investment Fund concept: Government to Government funding.
- The working of Shariah Principles in contemporary financial markets
- Human Capital Development of Islamic Finance in Ireland
- Financing European Corporates, Sovereign and Semi State Companies through the Islamic Capital Market.