Islamic Finance Transactions in France between Containment and Exclusion: Lease Contract Ending with Ownership
Dr. Rasha Mohammed Tayseer Hattab
Associate Professor – Commercial Law, College of Law – University of Sharjah – UAE
Dr. Mahmoud Fayyad
Associate Professor – Commercial Law – College of Law – University of Sharjah – UAE
Abstract:
One decade ago, the lawmaker in France decided to merge its Banking system with Islamic banking system, due to the role of the later to get over international financial crises. For this reason, some legal bylaws and local tax measures relate to Islamic finance system amendments got place.
The aim of this study is to highlight the legal system applicable in France dealing with Islamic financial law. In order to control the limit of the study, the lease contract ending with ownership is selected as a model for Islamic finance transactions. For this reason, the study did analyze the French rules that organize traditional finance transactions similar to the transactions of the lease contract ending with ownership.
In addition, it did discuss in details the legal nature of the transactions of the lease contract ending with ownership, in order to examine to what extent these contracts is to be implemented in the French financial regime in addition to the challenge of this implementation.
To attain its objectives, the study did follow both of the Inductive and analysis methodology; it consist of two main parts, the first deals with the restrictions of the development of Islamic financial transactions in France, while the opportunities of this development is going to be discussed in the second part of the study.