Luxembourg Islamic Mutual Funds Industry's Strong Growth Momentum to be Maintained

According to Fitch Ratings (Fitch), the Government of Luxembourg's continuing promotion of the country as a Western hub for Islamic finance and as an international financial centre, would sustain its Islamic Mutual Funds Industry's (MFI) strong growth momentum in the near to medium term.

Why it Matters?

Fitch noted that Luxembourg leads the European Islamic fund industry, with 30 Shariah-compliant funds (mostly mutual funds) as of the end of the third quarter of 2021 (3Q 2021). Ireland, on the other hand, has 16 Islamic funds, including mutual funds and Exchange Traded Funds (ETFs), while the UK has roughly five, mostly pension funds. Luxembourg's Islamic MFI has expanded by 122% in the last six years, with total assets under management (AUM) reaching USD...