BIS Review 59/2009  9  Islamic finance in Luxembourg: opportunities and challenges 34 -  Explanation of the business environment  -  Challenges for further development  Explanation of the business environment The development of Luxembourg’s international banking activities started in the late 60’s with the expansion of the euro bond market.
The financial centre extended further in the 80’s with private banking services. The other core activity of the Luxembourg financial centre is the investment fund industry. Our practitioners developed acute expertise in the domiciliation, administration and distribution of investment funds with the result that the Luxembourg financial sector is positioned among the world’s leading investment centres together with the US and France.