England is a main hub for Islamic Finance. But I am curious how is the situation in Germany. the country does not seem to have a good Islamic finance system.
Germany has the largest economy and largest Muslim population (4.1 million people, against 2.9 million in the UK) in Europe. It was the first Western country to tap the Islamic capital market when Saxony-Anhalt state issued its first Islamic bond (Sukuk) in 2004. In 2009, Germany’s Federal Financial Supervisory Authority (BaFin) started to conduct Islamic banking operations.
The German Financial market has also accepted the offering of a new Shari’ah-compliant investment product benchmarked to the WestLB Islamic Deutschland Index. This consisted of shares in ten German firms whose business activities were built according to Shari’ah. Financial institutions in Germany also actively engage in the Islamic finance industry via their subsidiaries in Dubai, London, and Kuala Lumpur. These institutions could have a dominant role in attracting Islamic funds to Germany via their well-established networks and expertise.