The UK’s position as a major hub for Shariah-compliant banking in the West was strengthened in 2023 when the country’s Islamic banks saw a 26 percent increase in assets to $8.2 billion.
According to Fitch Ratings’ most recent research, the UK’s Islamic finance market is expected to increase from $10 billion at the end of 2023 to $15 billion in the medium future.
The transformation of a conventional bank into an Islamic bank, ongoing asset development in Islamic funds and banks, and favorable laws will all contribute to this growth.
It was noted that the US dollar sukuk listing venue with the third-largest global market share is now the London Stock Exchange. As of the end of the first half of this year, the LSE had over $80 billion in outstanding US currency sukuk, or 35 percent of the global market.
Islamic bonds, or sukuk, are debt instruments that adhere to Shariah that allow investors to acquire a portion of an issuer’s assets until the bond matures.
Following the 2008 global financial crisis, Islamic money gained popularity as a safer option, making London a significant hub for Shariah-compliant financing in the West. According to the paper, sukuk has also made prominent homes in nations like Luxembourg, the US, and Ireland.
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