What is in Italy and Islamic Bank without Interest ?
In Italy, an Islamic bank with no interest would be a financial institution operating fully in line with Sharia law, which prohibits riba (interest) as unjust and exploitative.
In Italy, the Islamic bank, instead of earning revenue through charging interest on loans, the bank would use permissible alternatives such as Murabaha (cost-plus sale), Musharakah (profit-sharing partnership), and Ijara (lease-to-own agreements).
For Italy’s Muslim community, which has grown significantly over the last few decades, the establishment of an Islamic bank with no interest would carry enormous importance. Many Muslims in Italy currently face dilemmas when it comes to mortgages, personal loans, or business financing, as conventional banks only offer interest-based products.
Is there in Italy any Islamic Bank ?
No, in Italy, there is currently no fully operational Islamic bank.
Here’s the situation:
1. No Licensed Islamic Banks
- Italy’s banking sector does not include any Sharia-compliant banks.
- Italian financial regulations and banking laws have not yet been adapted to accommodate Islamic banking structures such as Murabaha (cost-plus sale), Ijara (leasing), or Musharakah (partnership-based mortgages).
2. Interest from Institutions
- Italy has shown academic and institutional interest in Islamic finance:
- Università di Roma Tor Vergata and other universities have published research on Islamic finance in Europe.
- Bank of Italy has acknowledged the potential demand from Italy’s Muslim population but has not implemented regulatory frameworks for Islamic banking.
WHICH INTERNATIONAL BANKS IN ITALY ARE OFFERING ISLAMIC FINANCE PRODUCTS OUTSIDE THE COUNTRY ?
International Islamic Banks May Operate in Italy Through EU Passporting
- Some global Islamic banks utilize the EU “passporting” system—a regulatory mechanism allowing banks licensed in one EU member state to offer services across all EU countries without needing separate approvals .
- However, there’s currently no publicly available evidence confirming that such banks use Italy as a hub for offering Islamic finance abroad or that they target Italian clients from within other jurisdictions.
Global Islamic Banks with International Coverage
That said, some prominent international Islamic banks operate across multiple regions and might engage with European or Italian clients indirectly, typically in corporate, investment, or cross-border contexts:
- Dubai Islamic Bank (DIB): The world’s first full-service Islamic bank, based in the UAE. It has subsidiaries and stakes in several foreign institutions (e.g., in Pakistan, Kenya, Sudan, and Bosnia) and offers a range of Sharia-compliant products .
- Al Baraka Group: A major Islamic banking group headquartered in Bahrain, with more than 600 branches across 13 countries, including nations in Europe, the Middle East, and Africa .
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