The Islamic finance and savings market - France

Islamic finance refers to a segment of the financial industry that specializes in offering financial products in accordance with Koranic law. Sharia law prohibits excessive risk, the notion ofinterest (riba), and the financing of activities deemed illicit, such as the market for alcohol, pornography, pork and pork by-products, and so on. Thanks to very specific legal and financial systems, Islamic finance today offers its customers a wide range of products. Born in Malaysia at the end of the 50s, the Islamic finance sector is expanding rapidly in the Muslim countries of the Middle East and South-East Asia. In the wake of the 2008 crisis, banks' and organizations' interest in new financing methods led to a rebound in the sector's growth worldwide(10 - 12% annual growth from 2010). Today, the global market is expected to grow by 4%(2023), and the number of players is increasing all the time. Despite a solid foothold in Europe, mainly in the UK, Luxembourg and Germany, Islamic finance is struggling to find its place in the French market. Yet France is the European country with the largest Muslim population (8.8% of the French population) , and fintechs are multiplying to offer customers halal products. The relaxation of the legal framework in the wake of the crisis, encouraged by some of the country's political figures, has given this segment of the finance industry its first wind. But fear of Islam remains the main obstacle to the development of Islamic finance and savings. Today, the development of sustainable finance and growing public interest in the fight against global warming are forcing the financial sector to reinvent itself. Responsible investment funds are proliferating, emphasizing transparency, respect for the environment and social justice. These are precisely the values promoted by Islamic finance. So the craze for ecologically and socially responsible products is a double-edged sword: a potential new clientele as well as new competitors.