Islamic Finance for Consumers in Ireland: A Comparative Study of the Position of Retail-level Islamic Finance in Ireland

The Irish Government’s public interest in Islamic finance has occurred only recently, with the publication of the Tax Briefing 2009 and the modifications to the Taxes Consolidation Act 1997, introduced by the Finance Act 2010. Echoing developments in other non-Islamic countries, these instruments attempt to facilitate the development of Islamic finance in Ireland by removing legislative obstacles faced by Islamic financial products, and by clarifying the tax position of these transactions. However, notwithstanding publicity suggesting that the Irish economy is now open to Islamic financial activity, this accommodation has not extended, in practice, beyond the wholesale Islamic finance market. Retail-level Islamic finance in Ireland therefore remains undeveloped and stymied by regulatory and taxation burdens. Focusing on domestic Islamic finance activity, this article will consider the current legal position of Islamic finance in Ireland. Using Islamic mortgage-alternatives as an example, it will discuss the continuing difficulties faced by those who wish to participate in Islamic retail finance. It will also present recommendations on how this sector could be more successfully integrated into the Irish legal framework