London will become new centre of Islamic finance, says PM

12:06 29 October 2013

Prime Minster David Cameron said he wants to make London a centre for Islamic finance. Picture: Oli Scarff/Getty Images

Prime Minster David Cameron said he wants to make London a centre for Islamic finance. Picture: Oli Scarff/Getty Images

2013 Getty Images

David Cameron has announced plans for a new Islamic index on the London Stock Exchange as he tries to establish the City as one of the world’s leading centres of Islamic finance.

The Prime Minister also told the World Islamic Economic Forum, which met in the capital, Britain will become the first non-Muslim country to issue its own Islamic bonds, known as sukuk.

Today’s plans are part of the government’s strategy to tap in to this fast-growing global market, which is expected to be worth £1.3trillion next year.

Mr Cameron told the forum: “Already London is the biggest centre for Islamic finance outside the Islamic world.

“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 as one of the great capitals of Islamic finance anywhere in the world.”

The aim of the new stock exchange index listing Islamic compliant companies is to attract investors to London, and the new bonds, worth around £200million, could be launched as early as next year.

Jodie Ginsberg, deputy director of financial research unit Demos Finance, said: “David Cameron is right to throw Britain’s doors open to the Muslim world to showcase our trading wares.

“But we should also use this forum as an opportunity to consider how the principles of Islamic finance itself, not just the money generated in the Muslim world, might be applied in the UK.

“Islamic finance is one of the few models successfully to have weathered the 2008 credit crunch and its aftermath.”

Sign up for our news alerts today!

Our editors' picks for the day's top news delivered to your inbox or phone.

Sign up for email alerts Sign up for mobile alerts
1
2 3 4 5 6
7

Latest London politics news

Monday, May 18, 2015
Your future Mayor? [Image from YouTube]

Conservative candidate for Mayor of London, Ivan Massow, has transformed himself into a cartoon character in order to get the top job.

Sunday, May 10, 2015
Protestors are surrounded by police (Photo by Rob Stothard/Getty Images)

All but one of 15 people arrested during a spontaneous anti-austerity protest against the new Tory government have been bailed, police said today.

Friday, May 8, 2015
Voters in Hampstead voted for Ronnie Carroll, who is dead (PA)

A total of 113 people voted for a parliamentary candidate who died four weeks before the election.

Friday, May 8, 2015
Ed Balls has lost his seat (Photo by Ian Forsyth/Getty Images)

Ed Balls became the highest-profile casualty of a disastrous General Election performance for Labour, losing his seat to the Conservatives in a shock result. Twitter reacted to his demise...

Friday, May 8, 2015
Simon Hughes has lost his Bermondsey and Old Southwark seat after more than three decades (Photo by Jeff J Mitchell/Getty Images)

Much-loved senior Liberal Democrat Simon Hughes has lost his Bermondsey and Old Southwark seat after 32 years.

Friday, May 8, 2015
Mayor of London Boris Johnson has won a seat in Uxbridge and South Ruislip in west London (Andrew Matthews/PA Wire)

Boris Johnson has succeeded in his bid for a Commons comeback after winning the seat for Uxbridge and South Ruislip in west London.

What is this?

Near You Now

Don't Miss...

Competitions

Time to experience the dizzy heights of London's tallest attraction!

Morgan Pryce, commercial property experts based in London are offering one lucky reader the chance to win a pair of tickets to The Shard viewing platform in the city itself.

Read more