Over the past ten years, Islamic finance has expanded in a spectacular fashion. In Belgium the Afschrift Law Firm is one of the pioneers in this field.
Combining ethics, economics and taxation
Strict moral code
Finance in the Islamic world is based upon 5 fundamental principles which are derived directly from Sharia Law:
- earned interest is forbidden
- chance and speculation are forbidden
- sectors are banned if they are incompatible with the Islamic moral code (eg, gambling, pornography, arms dealing, alcohol, etc)
- both profits and losses are shared
- based upon tangible assets
A healthy economic model
The prevalence of these ethical principles encourages the development of products based on a simple yet secure economic model, a world away from financial engineering.
A situation for tax advantage
The absence of earned interest and dividends makes Islamic products especially attractive from a taxation point of view.
For all these reasons, the Afschrift Law Firm has for many years been working in the field of Islamic law. As a member of the Isla¬mic Finance Net¬work (ISFIN), an international network of lawyers who specialise in Islamic finance, the Afschrift Law Firm takes active part in the development and certification of investment products that comply with Sharia Law.
In Belgium, our law firm is also an active supporter of the Asso¬cia¬tion pour le Déve¬lop¬pe¬ment de la Finance Isla¬mique (ADEDFI) and regularly provides speakers in the debates and seminars run by this association.