2. Islamic Finance Opportunities in Ireland
• Equivalent tax treatment of Islamic and Conventional Financial
Transactions.
• Irish tax code ensures that a Sukuk return is treated as
interest for Irish tax purposes.
• Amanie Advisors, a leading Shari’ah advisory firm specialising
in Islamic Finance solutions, has established an office in
Ireland.
• 14 promoters from the Middle East and North Africa have
Islamic Funds or schemes domiciled or serviced in Ireland.
• A number of large fund promoters have set up Islamic Funds
in Ireland. These include: Blackrock, BNP Paribas, Deutsche
Bank and Russell.
• Listing services on the Irish Stock Exchange (ISE).
3. Why Ireland For Islamic Finance: Funds
Fund Administration and the Distribution of UCITS Funds
Ireland is the world’s leading centre for the administration of
funds.
• 40% of global hedge fund assets are serviced in Ireland.
• Over USD $2.5 trillion in investor assets from 167 countries “This wealth of experience
are serviced by Irish service providers. has led to the attraction of
CIMB Principal Islamic Asset
• €1Billion AUM in Islamic Funds are serviced in Ireland
Management to Ireland.
(Lipper 2012).
Ireland also hosts many other
• Ireland has attracted some 20% of Shari’ah compliant funds Shari’ah compliant asset
domiciled outside of the Middle East. management funds”.
• Over 350 fund promoters from 50 countries have chosen
Ireland as the location to establish and service their
investment funds.
4. Malaysian based Shari’ah funds in Ireland
UCITS Funds
CIMB – Principal Islamic Asset Management
• The newly established CIMB-Principal Islamic Asset Management (Ireland) Public Limited
Company is the first Malaysian-based international Islamic funds platform domiciled in
Dublin. It will act as an investment manager of a Dublin-based Undertakings for Collective
Investment in Transferable Securities (UCITS) for Islamic funds.
• Under the newly-launched platform, CIMB-Principal Islamic is registering three new UCITS-
compliant equity funds:
(1) the Islamic Global Emerging Markets Fund;
(2) the Islamic Asia-Pacific ex-Japan Fund; and
(3) the Islamic ASEAN Equity Fund.
• With this establishment, CIMB hopes to realise the Malaysian Islamic International Financial
Centre’s aspiration for Malaysia to become an international hub for Islamic finance. This
initiative will encourage large international funds to appoint Malaysian Islamic asset
managers.
5. Why Ireland For Islamic Finance: Aviation
Aviation Finance: Sukuk Ijarah
Ireland is the location of choice for many of the top
Global Aircraft Lessors.
• Over 50% of the world’s commercial aircraft fleet
is managed from Ireland ($83 Billion in assets).
• 12.5% corporate tax rate means significant
planning opportunities.
Aircraft Leasing Companies in
• 8 year write off of capital spend for tax purposes Ireland
compared with a typical 20 -25 year economic
life.
• Network of double taxation treaties delivering a
favourable withholding tax result for aircraft
leasing lessors and their clients.
6. Aviation Finance Companies in Ireland
ACG Blade Engine Securitisation ICBC Leasing
AerCap BOC Aviation ILFC
AerCo Boeing Capital Corporation Investec
Aergo Capital CDB Leasing KG Aircraft Leasing
AerDragon CHC Helicopters Korean Air
AerVenture CIT Aerospace KV Aviation
Airbus Financial Services CMB Lease Corporation International
Aircastle DVB Macquarie AirFinance
Airplanes Group EADS Magellan Air
Airspeed Engine Lease Finance Milestone
Aldus Corporation NEC Leasing
Amentum Capital Limited FlyLeasing Nord LB
Alpstream Aviation Fuyo General Lease Company Nordic Aviation
Apollo Aviation Group GAAM Odyssey Aviation
Avolon Galaxy Aviation ORIX Aviation
AWAS GECAS RBS Aviation Capital (SMBC)
BBAM Greenstone Standard Chartered
BAE Systems GK Aviation Sumitomo
Bank of America Leasing Guggenheim Triton Aviation/ Worldstar
Bjets Hannover Leasing Volito Goldman Sachs
Hong Kong Aviation
7. Why Ireland For Islamic Finance: Shari’ah Advisory
Issuance of Sukuks and Corporate Treasury
Amanie Advisors
• Due to the current low volumes of Sukuk issuance, there is no centre for
Sukuk issuance in Europe.
• Amanie Advisors Limited, a Shari’ah consultancy firm, have opened an
office in Dublin and commenced trading on the 2nd of July 2012.
• Amanie Advisors Limited are actively engaged with a number of entities to
encourage the first issuance of a Sukuk in Ireland as part of their pan -
European objectives.
• Amanie have a global footprint and can use their considerable experience
to find Shari’ah compliant solutions for the funding needs for Shari’ah
complaint Irish and European based companies and projects.
8. Double Taxation Treaty Network
Ireland has a Double Taxation Treaty network with countries that
practice Islamic Finance. Countries that are of interest to IDA Ireland
in the Islamic Finance space are as follows:
• Singapore: Treaty in force.
• Bahrain: Treaty in force.
• United Arab Emirates: Treaty in force.
• Egypt: (signed on 9 April 2012 - not yet in effect)
• Qatar: (signed on 21st of June 2012 – not yet in effect)
• Malaysia, Kuwait and Saudi Arabia
Ireland has completed the ratification procedures with the above
countries to bring double taxation agreements into force. When
ratification procedures are also completed by these countries, the
agreements will enter into force.
Source: http://www.revenue.ie/en/practitioner/law/tax-treaties.html
9. Why Ireland? Progress to Date
Government Strategy Document
• “Strategy for the International Financial Services Industry in Ireland
2011 -2016”
• Published by the Irish Government in 2011.
• Commitment to develop Islamic Finance in Ireland.
Education - CIMA
Chartered Institute of Management Accountants (CIMA) now have a
Diploma & Advanced Diploma in Islamic Finance. 25 graduates in the
diploma program to date in 2012. Developing a core of qualified
professionals in the legal, accountancy, funds and aviation space that have
a thorough understanding of Islamic Finance.
Sukuk Market Establishment – Amanie Advisors
Amanie Advisors Limited are actively engaged with a number of entities
including IDA Ireland and CIMA to encourage the first issuance of a Sukuk
in Ireland as part of their pan-European objectives.
10. Why Ireland? Progress to Date
Irish Stock Exchange (ISE)
• Islamic Finance team in place to support the listing of Islamic Finance
products.
• 4 Shari’ah compliant Funds listed on ISE
International Financial Services Centre
• IFSC created an Islamic Finance Task Force to engage stakeholders.
The Revenue Commissioners
• Guidance notes issued by the Revenue Commissioners on the tax treatment
of Islamic Financial Transactions (October 2010).
• Extensive and growing network of double taxation treaties between Ireland
the GCC and Far East e.g. Malaysia and Singapore.
11. Why Ireland? Progress to Date
Department of Finance
• Islamic Finance in Ireland Information Note issued by the Department of
Finance March 2010.
• Section 39 of the Finance Act 2010 & Section 36 of the Finance Act 2012
which created tax equivalence between conventional finance and Islamic
Finance.
• Creation of the concept of a “specified financial transaction”.
IDA Ireland
• Trade mission by IDA Ireland to the Middle East in January 2009 and
promotional work with Ireland’s funds industry, legal and accountancy
firms and the Irish Stock Exchange.
• IDA Ireland along with others are currently identifying suitable
companies to issue the first corporate Sukuk in Ireland.
12. Summary: Why Ireland for Islamic Finance?
• Track record creating the International Financial Services Centre (IFSC).
• Strong Government support in developing the next stage of growth for the
IFSC using Islamic Finance as a driver.
• New investment opportunities in Ireland and Europe utilising Islamic Finance –
diversification of your portfolio.
• Equality of tax treatment between Conventional and Islamic Financial
Transactions.
• Renowned Shari’ah advisory firm using Dublin as its European headquarters.
• Shari’ah compliant funds serviced in the jurisdiction.
• Listing services of the Irish Stock Exchange.
• English speaking, common law jurisdiction.
• Best practice in legal, accounting and regulatory framework.
13. IDA Ireland – A ‘One Stop Shop’
IDA Ireland can support an interested company to establish a business in Ireland via a range
of financial and non-financial mechanisms:
Information & advice on potential locations, recruitment and property solutions in Ireland.
Introductory meetings with key Government and Industry Stakeholders.
Providing access to key existing technology and financial services groups, universities,
Multinational Companies and Small & Medium Enterprises.
On-going Project Management support.
Employment Permits and Visas.
Cash grants for employment creation, staff training, technology development and research &
development.
14. Thank You
For further information contact:
The International Financial Services Division
IDA Ireland
Tel: +353 (0)1 603 4223
Dermot O’Reilly
Business Development Executive
Email: dermot.o’reilly@ida.ie
Tel: +35316034203
Micheál Smith
Director – ASEAN
Email: micheal.smith@ida.ie
Tel: 00659815421
www.idaireland.com
