Foreign Office promotion of Islamic finance, Middle East trade ties

As reported in this Telegraph article (19 April 2015) the following analyses and observations support the proposition that the importance and scale of Islamic finance in the UK will continue to increase:

  • the Foreign Office statement reiterated the government’s ambition to compete with Dubai and KL as a global centre of Islamic finance
  • the current stock of Islamic financial institutions in Britain (6) with 20 others offering products
  • repeating notable deals — Shard and Olympic Village etc
  •  Chancellor George Osborne’s statement that promoting the Islamic finance industry (worth nearly $2 trillion), would help make Britain “the undisputed centre of the global financial system”
  • prediction sukuk market predicted to expand by 20 pc from the current 0.1 pc of global financial assets (HSBC)
  • that oil price fall, rather than hindering Islamic finance, could stimulate the issuance of debt compliant with Islamic law, for example by Saudi Arabia (HSBC)
    • Gulf nations have a “strong capacity to accept more debt and a strong inclination to use Islamic capital markets” (HSBC)
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