Despite its leading position as a western Islamic finance hub, the UK Islamic finance industry faces growing challenges including the lack of a lender of last resort and the absence of a UK sovereign sukuk. Jan Dinger explores.
In 2011, Islamic finance investments continued a long run of global growth to reach around US$1.3 trillion by year-end, with the UK still in first place as the leading western provider of Islamic finance, hosting US$19 billion in Shariah compliant assets. London’s profile as the western leader of Islamic finance has grown in recent years, (although institutions in the country have in fact been providing Shariah compliant financial services for 30 years) and London is seeking to further consolidate this position.
