Islamic finance in Europe: contemporary problems of assimilation
https://doi.org/10.24182/2073-6258-2025-24-4-9-15
Abstract
In today’s changing geo–economic circumstances, the Islamic finance industry is expanding beyond Muslim countries. European countries started their way to implementing Islamic finance more than 15–20 years ago. One of the goals of this implementation was to attract investment from the Persian monarchies, as well as to become a financial center not only for Old World funds but also a global center for Islamic finance.
In this context, the experience of European countries such as the UK, France, Germany, and Luxembourg appears particularly interesting. However, along with positive financial results, these countries are also experiencing negative effects, fueled by a growing Muslim population, the introduction of Sharia law into their legal systems, and the emerging challenges of civilizational conflict.
About the Author
S. Yu. Babenkova
epartment of Economic Research, Institute of Oriental Studies of the Russian Academy of Sciences
Russian Federation
Russian Federation
Cand. Sci. (Econ.), Senior scientific officer
Moscow
References
1. Bertillo, Julius B. and Bertillo, Julius B. and Bertillo, Eva B., The Role of Islamic Financial Systems and Banking Institutions in Global Economic Recovery (May 22, 2022). Available at SSRN: https://ssrn.com/abstract=4116857 or http://dx.doi.org/10.2139/ssrn.4116857.
2. Islamic Finance Market Size, Share, Growth, and Industry Analysis, By Type (Islamic Banking,Islamic Insurance,Islamic Bonds,Islamic Funds), By Application (Private,Corporation), Regional Insights and Forecast to 2034 – Market Reports World, 03.12.2025. – URL: https://www.marketreportsworld.com/market-reports/islamic-finance-market-14721978.
3. Islamic finance: global trends and the UK market – TheCityUK, 11.2022. – URL: https://www.thecityuk.com/ media/uooh3ri4/islamic-finance-global-trends-and-the-uk-market.pdf.
4. Islamic Finance in Europe – European Central Bank, 2013. – URL: https://www.ecb.europa.eu/pub/pdf/scpops/ecbocp146.pdf.
5. Jean Beaman. As French as Anyone Else: Islam and the North African Second Generation in France – The International Migration Review, Vol. 50, No. 1 (Spring 2016), pp. 41–69 (29 pages). – URL: https://www.jstor.org/stable/43948600.
6. Jean-Baptiste Santelli and Racha Wylde. Islamic finance and markets in France – De Gaulle Fleurance & Associйs, 01.10.2019. – URL: https://www.lexology.com/library/detail.aspx?g=1194b719-f5ef-4df7-a4ac- d73eb673b29d.
7. Organisation of Islamic Cooperation (OIC) and the EU – The Diplomatic Service of the European Union, European Union, 03.08.2021. – URL: https://www.eeas.europa.eu/eeas/organisation-islamic-cooperation- oic-and-eu_en.
8. Regan Doherty. Qatar unlikely to be white knight for Europe banks – Reuters, 09.10.2011. – URL: https:// www.reuters.com/article/us-banks-qatar/analysis-qatar-unlikely-to-be-white-knight-for-europe-banks-idUSTRE79818G20111009/.
9. Stephen Maunder. The tax system in Germany: updated for 2025 – Expatica, 08.10.2025. – URL: https://www.expatica.com/de/finance/taxes/taxes-in-germany-103978/.
10. Susanne Soederberg. On the contradictions of the New International Financial Architecture: Another procrustean bed for emerging markets? – Third World Quarterly. Journal of Emerging Areas 23(4):607-620 DOI: 10.1080/0143659022000005292). – URL: https://www.researchgate.net/publication/240521158_On_the_contradictions_of_the_New_International_Financial_Architecture_Another_procrustean_bed_ for_emerging_markets.
11. The UK leading western center for Islamic finance – 11.2015. – URL: https://ceif.iba.edu.pk/pdf/TheCityUK-UKLeadingWesternCentreforIslamicFinance2015.pdf.
12. Usman, A.A., Huda, M.I.M., & Sa’ad, A.A. (2022). Diplomacy and the Birth of Islamic Finance As An Alternative Financing Source for The Global South. International Journal of Academic Research in Business and Social Sciences, 12(8), 1181–1197.
13. Akimov A.V. Scenarios for the development of Eastern countries for the long term. Eastern analytics. 2012. № 3. – URL: https://cyberleninka.ru/article/n/stsenarii-razvitiya-stran-vostoka-na-dolgosrochnuyu-perspektivu.
14. Yakovlev A.I. Countries of the East: the challenge of «Cultural Globalization». Vestn. Mosk. University. Ser. 25. International relations and world politics. 2009. № 1. – URL: https://fmp.msu.ru/attachments/article/268/YAKOVLEV_1_2009.pdf.
15. Babenkova S.Yu. Turkish financial system: modernity, problems, challenges/Rev. editor A.V. Akimov; Institute of Oriental Studies of the Russian Academy of Sciences. – M.: IV RAS, 2025. ISBN 978-5-907994-24-9.
16. Babenkova S.Yu. Money in the islamic economy. Entrepreneur’s Guide. 2025. Т. 18. № 1. P. 82–100. https://doi.org/10.24182/2073-9885-2025-18-1-82-100.
Review
For citations:
Babenkova S.Yu. Islamic finance in Europe: contemporary problems of assimilation. Scientific notes of the Russian academy of entrepreneurship. 2025;24(4):9-15. (In Russ.) https://doi.org/10.24182/2073-6258-2025-24-4-9-15
Views:
10
Email this article 