The UK Islamic Finance Secretariat was showcased at the World Islamic Banking Conference in Bahrain, where 1200 delegates from 50 countries attended the three-day event to learn about the strengths and challenges facing the industry.
Kazi Rahman, head of legal for UKIFS, said the group is working alongside bankers, accountants, lawyers, and educational bodies to lobby the government to launch a Sukuk (Islamic bond) to enable the UK's five Islamic banks to get funds, based on Sharia principles, that would allow them to widen their pool of lending.
It will also fight to change UK legislation to allow Sharia products to compete with traditional finance products.
He said: "Right now the UK's Islamic banks are limited to their balance sheets and can only lend a certain amount. Unlike a conventional bank, they cannot increase their funds by buying gilts as these are not in line with Islamic principles.
"But a sterling-based Sukuk would be phenomenal and enable the industry to flourish. The government and FSA have been supportive and are pushing for this because there is a lot of money in this untapped industry."
Mr Rahman said a growing number of UK firms and companies are currently looking to Islamic banks to obtain funding. He added that interest in Islamic finance is increasing, particularly since it was disclosed that the Shard building in London Bridge is being funded by four Qatar-based companies.
He added: "We have to dispel the notion that Islamic finance is just for Muslims, because the reality is that it is for everyone. About 80 per cent of my clients are non-Muslim because they have found that conventional banks are unwilling to lend, but Islamic banks are prepared to. The 2008 banking crisis has forced more UK firms and investors to look for alternative means of accessing finance."
Richard Thomas, chief executive officer for Gatehouse Bank and key campaigner for UKIFS, said the UK has a great opportunity to benefit from the global growth of Islamic finance.
Gatehouse Bank is an FSA authorised Shariah-compliant British bank headquartered in London.
He added: "We are excited about the opportunities presented in an improved trade and economic outlook worldwide and we are keen to explore new territories where Islamic finance is gathering momentum.
"As well as providing a forum for natural Islamic jurisdictions in the Middle East and Asia, we welcome its wider global engagement to help move the industry into the broader financial services spectrum."
Source : http://www.ftadviser.com/FinancialAdviser/Investments/News/article/20101125/4e46bb7e-f717-11df-81b8-00144f2af8e8/Sukuk-is-top-of-agenda-for-UK-trade-body.jsp - Nov 25, 2010
Kazi Rahman, head of legal for UKIFS, said the group is working alongside bankers, accountants, lawyers, and educational bodies to lobby the government to launch a Sukuk (Islamic bond) to enable the UK's five Islamic banks to get funds, based on Sharia principles, that would allow them to widen their pool of lending.
It will also fight to change UK legislation to allow Sharia products to compete with traditional finance products.
He said: "Right now the UK's Islamic banks are limited to their balance sheets and can only lend a certain amount. Unlike a conventional bank, they cannot increase their funds by buying gilts as these are not in line with Islamic principles.
"But a sterling-based Sukuk would be phenomenal and enable the industry to flourish. The government and FSA have been supportive and are pushing for this because there is a lot of money in this untapped industry."
Mr Rahman said a growing number of UK firms and companies are currently looking to Islamic banks to obtain funding. He added that interest in Islamic finance is increasing, particularly since it was disclosed that the Shard building in London Bridge is being funded by four Qatar-based companies.
He added: "We have to dispel the notion that Islamic finance is just for Muslims, because the reality is that it is for everyone. About 80 per cent of my clients are non-Muslim because they have found that conventional banks are unwilling to lend, but Islamic banks are prepared to. The 2008 banking crisis has forced more UK firms and investors to look for alternative means of accessing finance."
Richard Thomas, chief executive officer for Gatehouse Bank and key campaigner for UKIFS, said the UK has a great opportunity to benefit from the global growth of Islamic finance.
Gatehouse Bank is an FSA authorised Shariah-compliant British bank headquartered in London.
He added: "We are excited about the opportunities presented in an improved trade and economic outlook worldwide and we are keen to explore new territories where Islamic finance is gathering momentum.
"As well as providing a forum for natural Islamic jurisdictions in the Middle East and Asia, we welcome its wider global engagement to help move the industry into the broader financial services spectrum."
Source : http://www.ftadviser.com/FinancialAdviser/Investments/News/article/20101125/4e46bb7e-f717-11df-81b8-00144f2af8e8/Sukuk-is-top-of-agenda-for-UK-trade-body.jsp - Nov 25, 2010
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