Wednesday Academic Dialogue (20)

Chair of Ethics and Financial Norms
Université Paris 1 Panthéon Sorbonne – King Abdulaziz University

6th Seminar

Islamic Venture Capital in French Law: A legal analysis

Wednesday 08 March, 2017 (09/06/1438H)

Ms. Dorsaf  Matri (Speaker)

Chair of Ethics and Financial Norms, France 

Abstract

Venture capital is an effective tool for investment in both early stage and hi-tech businesses. From a purely legalistic perspective, Dr. Dorsaf MATRI examines the current legal framework of France on venture capital and the opportunities it presents for shari'a-compliant investments. Through in-depth analysis of the requirements of Islamic law and the framework of collective management in France, this study puts into perspective the legal structures that could provide the flexibility required to implement an Islamic venture capital transaction into French law. The findings of the author provide a clear direction, which includes the opportunities and inevitable risks, for investors who are willing to venture into the French investment arena using the Islamic venture capital instruments. Though few studies have been carried out on potentials of Islamic finance in France generally, there has not been much focus on venture capital sector, which might give a new impetus to efforts toward buildings bridges across financial communities. In addition to the economic benefits attached to the receipt of an activity with high benefits, modeling a "French Islamic venture capital" could increase the attractiveness of the financial place of Paris by allowing the inclusion of a class of entrepreneurs and investors looking for ethical and cooperative alternatives for corporate finance.