By Peter Alagos/Business Reporter



The Grand Duchy of Luxembourg is keen to issue another sukuk next year following the success of the QInvest-assisted, first euro-denominated sovereign sukuk issued in September 2014, Finance Minister Pierre Gramegna said.
Speaking to media during a roundtable discussion at the Four Seasons Hotel in Doha on Wednesday, Gramegna said, “Luxembourg wants to become a regular player in the issuance of sukuk.”
“The first sukuk that we launched was very successful, as it was more than 2x oversubscribed. It was the first sovereign sukuk denominated in Europe ever launched, and involves some players from Qatar…and as a result, the government plans to issue further sukuk next year,” Gramegna explained.
He stressed that a euro-denominated sovereign sukuk “represents a milestone in establishing Luxembourg as the global hub for Islamic Finance outside the Middle East.”
“We have a lot to learn from the specialists here in the Islamic banks and so that is one of the reasons why we are here, and we are looking forward to a fruitful co-operation in this field. The sukuk that we have issued has been marketed in Europe and in the Middle East,” he said.
Gramegna was in Doha to lead a financial delegation headed by Crown Prince of Luxembourg, Prince Guillaume, who met with HH the Emir Sheikh Tamim bin Hamad al-Thani to discuss strategic co-operation between the two countries in the field of international finance, among others.
The delegation, composed of senior representatives from the Luxembourg financial services sector, attended a seminar organised by Luxembourg for Finance in co-operation with the Qatar Financial Centre (QFC) at the W Hotel here.
According to Gramegna, the seminar focused on Luxembourg as a diversified financial centre for private and institutional investors from the Middle East, as well as a leading Islamic finance centre in Europe.
He noted that economic ties between the two countries led to a number of Qatari investments in the Grand Duchy, citing the purchase of Luxembourg-based banks, KBL and BIL, by a Qatari investor in 2011.
“I would like to underline that we are very pleased to have Qatari investors in two important Luxembourg banks, who are very pleased with their investment,” he said.
When asked to name the Qatari organisations other than QInvest involved in the issuance of further sukuk next year, Gramegna said, “It is not decided yet. We are here now to continue discussions with potential partners in Qatar.”
Gramegna noted that in Qatar, less attention is being given on investment funds: “There’s a whole range of financial products we can offer, which can be of interest to Qatari players for the simple reason that until recently, these instruments were underused.”
As for investment funds, Gramegna said, Luxembourg has the largest investment fund industry in Europe and the second largest in the world with €3tn worth of assets under management. “We think that the full potential of the Luxembourg centre for investment funds is not being used for the time being and that is why we’re here to tell a story about it to attract more players from this region to Luxembourg,” he added.



Related Story