web analytics
July 29, 2015 / 13 Av, 5775
At a Glance
InDepth
Sponsored Post


Home » InDepth » Op-Eds »

Britain: ‘A World Capital for Islamic Finance’

"I want London to stand alongside Dubai and Kuala Lumpur as one of the great capitals of Islamic finance anywhere in the world." — David Cameron, Prime Minister, Great Britain.
london muslims

Originally published at Gatestone Institute.

The London Stock Exchange will be launching a new Islamic bond index in an effort to establish the City of London as one of the world’s leading centers of Islamic finance.

Britain also plans to become the first non-Muslim country to issue sovereign Islamic bonds, known as sukuk, beginning as early as 2014.

The plans are all part of the British government’s strategy to acquire as big a slice as possible of the fast-growing global market of Islamic finance, which operates according to Islamic Sharia law and is growing 50% faster than the conventional banking sector.

Although it is still a fraction of the global investment market — Sharia-compliant assets are estimated to make up only around 1% of the world’s financial assets — Islamic finance is expected to be worth £1.3 trillion (€1.5 trillion; $2 trillion) by 2014, a 150% increase from its value in 2006, according to the World Islamic Banking Competitiveness Report 2012-2013, published in May 2013 by the consultancy Ernst & Young.

But critics say that Britain’s ambitions to attract investments from Muslim countries, companies and individuals are spurring the gradual establishment of a parallel global financial system based on Islamic Sharia law.

British Prime Minister David Cameron announced the plans during a keynote speech at the ninth World Islamic Economic Forum, which was held in London from October 29-31, the first time the event has ever been held outside the Muslim world.

“Already London is the biggest center for Islamic finance outside the Islamic world,” Cameron told the audience of more than 1,800 international political and business leaders from over 115 countries.

“And today our ambition is to go further still. Because I don’t just want London to be a great capital of Islamic finance in the Western world, I want London to stand alongside Dubai and Kuala Lumpur as one of the great capitals of Islamic finance anywhere in the world.”

Cameron said the new Islamic bond index on the London Stock Exchange (LSE) would help stimulate fixed-income investments from Muslim investors — especially investors from oil-rich Persian Gulf countries — by helping them identify which listed companies adhere to Islamic principles.

Investors who practice Islamic finance — which is said to be structured to conform to a strict code of ethics based on the Koran and Sharia law — refuse to invest in companies that are linked to alcohol, gambling, pornography, tobacco, weapons or pork. Islamic finance also forbids collecting or paying interest and requires that deals be based on tangible assets.

Unlike conventional bonds, sukuk are described as investments rather than loans, with the initial payment made from an Islamic investor in the form of a tangible asset such as land. The lender of a sukuk earns money as profit from rent, as in real estate, rather than traditional interest.

Cameron says the British Treasury will issue £200 million (€235 million; $320 million) worth of sukuk as early as 2014. The objective is to enable the government to borrow from Muslim investors. The Treasury plans to issue fixed returns based on the profit made by a given asset, thereby allowing Muslims to invest without breaking Islamic laws forbidding interest-bearing bonds.

The Treasury also said some sukuk bond issues may require the British government to restrict its dealings with Israeli-owned companies in order to attract Muslim money.

Although Britain has already established itself as the leading secondary market for sukuk — the LSE has listed 49 sukuk bonds worth $34 billion during the past five years — such bonds have rarely been issued from local firms and never from the government.

“For years people have been talking about creating an Islamic bond, or sukuk, outside the Islamic world. But it’s never quite happened,” Cameron said. “Changing that is a question of pragmatism and political will. And here in Britain we’ve got both.”

According to Cameron, this “pragmatism and political will” is being influenced by the fact that Islamic finance is “already fundamental” to the success of the British economy. Indeed, it is.

Britain is already the leading Western center for Islamic financial and related professional services. It is a leading provider of Sharia-compliant finance, with reported assets of $19 billion, according to Islamic Finance 2013, a new report published by The City UK, a financial sector lobby group.

About the Author: The writer is a Senior Fellow at the New York-based Gatestone Institute. He is also Senior Fellow for European Politics at the Madrid-based Grupo de Estudios Estratégicos / Strategic Studies Group, one of the oldest and most influential foreign policy think tanks in Spain.


If you don't see your comment after publishing it, refresh the page.

Our comments section is intended for meaningful responses and debates in a civilized manner. We ask that you respect the fact that we are a religious Jewish website and avoid inappropriate language at all cost.

If you promote any foreign religions, gods or messiahs, lies about Israel, anti-Semitism, or advocate violence (except against terrorists), your permission to comment may be revoked.

One Response to “Britain: ‘A World Capital for Islamic Finance’”

  1. Poor old G.B. Sleepwalking into a Muslim dictatorship.All for the sake of money for Cameroons pals.

Comments are closed.

Current Top Story
The White House will free Pollard but bar him form traveling to Israel for five years.
US Won’t Let Pollard Out of Country for Five Years
Latest Indepth Stories

The next day, in a speech in New York to the Council on Foreign Relations, Mr. Kerry substantially upped the ante.

Pres. Rivlin and PM Netanyahu with the justices of the Supreme Court

In Israel, the judiciary has established itself as superior to ALL other branches of the government.

Roy S. Neuberger

The Fifteenth Day of the month of Av became a day of national rejoicing. The moment that had seemed hopeless became the moment of Redemption.

I think the melodies in our religious services have a haunting sound to them that just permeates your guts and gets into your soul. If you have any musical inclination, I think they inspire you to compose.

Cavalier analogies to the Holocaust are unacceptable, but Huckabee’s analogy was very appropriate.

Pollard was a Jewish-head-on-a-pike for all American Jews to see and to learn the explicit lesson.

If the Iran deal passes, Obama’s WH becomes world’s leading financier of terrorism against Americans

{Originally posted to the author’s website, FirstOne Through} Some passionate and eloquent liberals have bemoaned the state of inclusiveness among Jews today. Leon Wieseltier, editor of the New Republic penned an angry piece “J Street’s Rejection Is a Scandal” about the exclusion in 2014 of J Street from the Conference of Presidents of Major American Jewish Organizations. […]

Magnanimity by Moshe Dayan, allowing Muslim control of the Temple Mount, led to today’s situation.

It was modeled upon a similar fund that had been set up by Sephardic Jews in Venice. But Amsterdam’s Dotar was initially more ambitious in scope.

Rav Aharon Margalit is a bestselling author – his book, As Long As I Live, has been translated into four languages – and a standing-room only lecturer. Both religious and non-religious audiences flock to hear him. What makes him so extraordinary? Rav Margalit is a Chasidic Jew who experienced incredible challenges from a very young […]

J Street is the vanguard (Jewish face)in support of Obama’s Vienna Accords Nuclear Deal with Iran

“I hold the woman’s place over that of men in every fundamental aspect of public and private life.”

The US-UNRWA accord is another example of this White House, hostile to Israel, disregarding truth.

On the saddest day on the Jewish calendar, Tisha B’av, a reflection on the dangerous deal with Iran

More Articles from Soeren Kern
Spanish passport now available to SOME Sephardic Jews. At right, a sculpture of the medieval Spanish Jewish rabbi, physician and philosopher Rambam in his birthplace of Cordoba, Spain.

Spain’s government has the clear intention that the fewer and richer the applicants, the better.

One of the schools found to be indoctrinating students with radical Islam in Birmingham, England.

Inspectors: pupils in some English schools are systematically exposed to radical Islamic propaganda.

In Paris, the Union of Islamic Organizations congress was turned into a platform for Muslim anti-Semitism.

Instead of integration, “parallel societies are forming that continuously distance themselves from each other.”

Adebolajo said there was an ongoing “war between Muslims and the British people” and he was a “soldier of Allah.”

” All this new law does is create a raft of civil servants being paid to move mountains of papers round all day.”

“I find it shocking they won’t list everything they’ve found.” — Lawrence Kaye, Art Lawyer, New York.

“I want London to stand alongside Dubai and Kuala Lumpur as one of the great capitals of Islamic finance anywhere in the world.” — David Cameron, Prime Minister, Great Britain.

Printed from: http://www.jewishpress.com/indepth/opinions/britain-a-world-capital-for-islamic-finance/2013/10/31/

Scan this QR code to visit this page online: