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Germany's first Islamic bank to start in October

Berlin, August 31:Turkey's Kuveyt Turk investment fund plans to open the first I slamic bank in Germany in October, the Financial Times Deutschland reported. Kuveyt Turk plans to open its first branch, following the principles of the Isla mic sharia law, in Frankfurt-am-Main in cooperation with Ernst & Young auditing company and Norton Rose law firm. Sharia law prohibits a fixed or floating payment or acceptance of specific inter est or fees on loans. As for mortgages, the Islamic bank purchases houses and then sells it to a clien t for a higher price. Other branches of the bank will be opened in German cities with large Muslim com munities, particularly in Berlin. As for other European countries, such banks are already providing their services in Britain, the paper said. Analysts, however, doubt if such banking services will become popular in Germany where the Muslim community does not exceed five percent or 4.1 million people.