Deutsche Bank this week announced the launch of Al Mi'yar, a Luxembourg platform for issuing Shariah-compliant securities including structured products.
"Deutsche Bank is extremely pleased to be again at the forefront of innovation in Islamic finance, as demonstrated by our ability to adapt all types of investment products and strategies to the Shariah-compliant world. Al Mi'yar will, in my opinion, revolutionise the issuance of securities in an Islamic manner," said Deutsche Bank's head of structuring for the Mena region Geert Bossuyt.
Al Mi'yay (meaning The Standard), will use Luxembourg Financial Group as the investment manager, while the German bank's trust and securities services group will provide the settlement framework.
The platform meets all of the latest standards issued by the Accounting and Auditing Organisation of Islamic Finance Institutions (AAOIFI) and hence should be globally acceptable.
Al Mi'yar will enable Islamic investors to meet their specific investment objectives by giving them exposure to different asset classes without compromising their Islamic beliefs, said a spokesperson for the company. In comparison with other Islamic platforms, Al-Mi'yar maximises efficiency and protection of investors' interests, while generating liquidity and returns.
"Until now, issuance platforms have always been closely controlled by the deal originating banks. Al Mi'yar revolutionises the approach to securities issuance as it puts a fiduciary instead of a bank in control," said CEO of Luxembourg Financial Group AG Johan Groothaert.