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

Sunday, May 1, 2016
The vandalised windows of the Cereal Killer Cafe after the September F*** Parade (Photo: Cereal Killer Cafe)

Riot police have arrived at F*** Parade, the anti-gentrification protest that caused damage in Brick Lane in September, but as of 8.54pm there were no arrests.

Thursday, April 28, 2016
Rabbi Laura Janner-Klausner from the Movement for Reform Judaism has said she doesn't think MP Naz Shah is anti-Semtiic

Rabbi Laura Janner Klausner welcomed Naz Shah into her home last week for an interfaith feast for Passover - and this morning said that she would like to take the suspended Labour MP to Israel.

Thursday, April 28, 2016
Should Ken hoist his rucksack on his shoulders and walk on out? (Picture: PA Images)

Ken Livingstone, former Mayor of London, has been suspended from the Labour party after he made comments about Hitler, Zionism and ‘the Israel lobby’ on the radio this morning.

Thursday, April 28, 2016
The Evening Standard publishs around 900,000 copies a day in the capital  (Photo: Peter Macdiarmid/Getty Images)

The Evening Standard’s London mayoral coverage is “consistently and overwhelmingly” biased in favour of Zac Goldsmith, giving him both more and more positive coverage than his Labour rival Sadiq Khan, according to a study by Goldsmiths University academics.

Wednesday, April 27, 2016
Lee Harris is the CISTA candidate for the London Mayoral Election 2016. He advocates legalising cannabis and setting up marijuana cafes in the capital (Picture: London24)

“One love!” is the catchprase of the hippy, ‘head shop’ owning, 79-year-old CISTA candidate for London Mayor. London24 talks legalisation, munchies and more with counterculture legend Lee Harris.

Tuesday, April 26, 2016
Big Ben will stop ticking for months (Picture: Getty)

One of London’s best loved landmarks, Big Ben, is about to fall silent after hundreds of years bringing in the hour at Westminster.

What is this?

Near You Now

Don't Miss...

Competitions

Kindle 7 inch tablet

Are you looking for a brand new gadget to help you stay connected on the go and make that long journey home a bit more entertaining? Look no further. MyOffers is giving you the chance to win 1 of 50 Kindle Fire 7” Display Tablets! That’s 50 times more chances to win, so hurry up and enter our competition today and you could be one of our lucky winners!

Read more
Yummy traditional afternoon teas for two

MyOffers is giving you the chance to win 1 of 50 Traditional Afternoon Teas for two at a location of your choice! That’s 50 times more chances to win, so hurry up and enter our competition today and you could be one of our lucky winners!

Read more

Latest Tech News

Transport