Disclaimer: Please be advised that the information provided in this article is relevant as of the time of its composition. However, it is important to recognize that due to the periodic release of new financial reports on a quarterly basis, the status of the mentioned stocks may undergo changes. Therefore, readers are encouraged to exercise diligence and consult updated financial information before making any investment decisions.
Wondering how to make ethical investments in France that also yield strong returns? Halal stocks might be the perfect solution. In this guide, we’ll explore how these investments adhere to Islamic principles while offering attractive financial opportunities, helping you create a portfolio that aligns with your values.
Looking to expand your investment options with halal stocks in France? Click the button to access exclusive insights and take your Shariah-compliant investment strategy further.
List of 20 Halal Stocks in France by Market Cap
| Company Name | Ticker | Market Cap | Shariah-Compliance Status | Halal Ranking |
| L’Oreal SA | OR.PA | €242.12B | Halal | ★ ★ ★ ★ ★ |
| Hermes International SCAj | RMS.PA | €225.61B | Halal | ★ ★ ★ ★ ☆ |
| Schneider Electric SE | SU.PA | €133.01B | Halal | ★ ★ ★ ☆ ☆ |
| Sanofi SA | SAN.PA | €112.35B | Halal | ★ ★ ★ ☆ ☆ |
| L’Air Liquide Societe Anonyme pour l’Etude et l’Exploitation des Procedes Georges Claude SA | AI.PA | €97.62B | Halal | ★ ★ ★ ☆ ☆ |
| EssilorLuxottica SA | EL.PA | €95.19B | Halal | ★ ★ ★ ★ ☆ |
| Dassault Systemes SE | DSY.PA | €49.15B | Halal | ★ ★ ★ ★ ☆ |
| STMicroelectronics NV | STM.PA | €42.69B | Halal | ★ ★ ☆ ☆ ☆ |
| Kering SA | KER.PA | €39.00B | Halal | ★ ☆ ☆ ☆ ☆ |
| STMicroelectronics NV | STMPA.PA | €37.42B | Halal | ★ ★ ☆ ☆ ☆ |
| Legrand SA | LR.PA | €25.96B | Halal | ★ ★ ☆ ☆ ☆ |
| Sartorius Stedim Biotech SA | DIM.PA | €17.73B | Halal | ★ ☆ ☆ ☆ ☆ |
| Bureau Veritas SA | BVI.PA | €12.85B | Halal | ★ ★ ☆ ☆ ☆ |
| Biomerieux SA | BIM.PA | €10.87B | Halal | ★ ★ ★ ★ ★ |
| Eurofins Scientific SE | ERF.PA | €10.69B | Halal | ★ ★ ★ ☆ ☆ |
| Ipsen SA | IPN.PA | €10.41B | Halal | ★ ★ ★ ☆ ☆ |
| Gaztransport et Technigaz SA | GTT.PA | €4.76B | Halal | ★ ★ ★ ★ ★ |
| Soitec SA | SOI.PA | €4.23B | Halal | ★ ★ ☆ ☆ ☆ |
| Alten SA | ATE.PA | €3.98B | Halal | ★ ★ ★ ★ ☆ |
| Interparfums SA | ITP.PA | €3.31B | Halal | ★ ★ ★ ★ ☆ |
Islamic Finance and Halal Investing in France
Establishment and Regulatory Framework
In December 2007, Paris EUROPLACE, the organization dedicated to promoting Paris as a financial hub, established the Islamic Finance Commission. This move marked the beginning of a concerted effort to integrate Islamic finance into the French financial system.
The Autorité des marchés financiers (AMF), France’s financial markets regulator, subsequently issued two key positions that allowed for the establishment of Shari’ah-compliant investment funds and sukuk listings. To accommodate these developments, the Bourse de Paris (Paris Stock Exchange) introduced a dedicated sukuk segment.
Additionally, four tax regulations concerning murabahah, sukuk, ijarah, and istisna’ were published, ensuring these Islamic finance products receive tax treatment on par with conventional financial products.
Regulatory Changes and Initiatives
2008 Tax and Regulatory Reforms
In July 2008, the French government announced a series of significant tax and regulatory reforms aimed at bolstering Islamic finance in France. These reforms included:
- Sukuk Listing and Tax Treatment: The reforms facilitated the admission of sukuk to French regulated markets and aligned the tax treatment of Islamic financial transactions with conventional products. Sukuk compensation is treated as interest on traditional bonds for tax purposes, making it deductible from taxable income.
- Exemption for Non-Resident Investors: Compensation paid to non-resident sukuk investors is exempt from withholding tax in France, regardless of the governing law of the offering.
2010 Amendments and Islamic Finance Products
In July 2010, further amendments were made to simplify sukuk issuance processes:
- Removal of Double Stamp Duty: The amendments eliminated the requirement for double stamp duty on sukuk.
- Capital Gains Tax on Property: The payment of capital gains tax on property was removed.
- Streamlined Estate Agent Regulations: Regulations concerning estate agents were also streamlined to facilitate Islamic finance operations.
In June 2011, France saw the launch of its first Islamic deposit scheme through the Islamic window of an existing conventional bank. This was followed by the introduction of a 10-year murabahah home finance product, which saw strong demand due to the high interest in Shari’ah-compliant home financing among French retail clients.
Current Landscape and Future Prospects
Existing Shari’ah-Compliant Funds
As of now, France hosts six Shari’ah-compliant funds with a total asset management value of USD 147.2 million. These assets are divided between money market (47%) and equity (53%) investments.
Future Developments
The French tax authorities are planning to release additional guidelines covering other Islamic finance concepts, such as musharakah and mudarabah. These developments suggest a continued commitment to expanding and refining the Islamic finance sector in France.
Potential for Growth
Islamic finance in France has promising potential for further development. The country’s established trade relationships with North African countries, which have large Muslim populations, and the significant North African demographic within France, contribute to a growing domestic demand for Islamic finance products. This evolving landscape indicates that Islamic finance is well-positioned to expand further within the French financial sector.
Source: Islamic Finance Foundation
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