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

Thursday, February 4, 2016
Boris Johnson has today unveiled plans for the two giant traffic-busting tunnels (Picture: PA Images)

Fed up with the traffic en route to work? Boris Johnson may have the answer. The London mayor has just unveiled plans for two huge tunnels which would run under London and make commuting easier.

Monday, January 25, 2016
A new artwork by Banksy, depicting the girl from Les Misérables affected by tear gas, opposite the French embassy in Knightsbridge, London (Yui Mok/PA Wire)

New artwork by Banksy criticising the use of teargas in The Jungle refugee camp in Calais has appeared on a wall opposite the French Embassy in London.

Tuesday, January 19, 2016
Young man tweeting on mobile phone

A survey analysed tweets from across the capital between December 15 and January 14

Tuesday, January 19, 2016
Junior doctors will be on strike today

Next week’s junior doctors strike has been cancelled as progress is made in negotiations.

Tuesday, January 19, 2016
February 2015... three Bethnal Green girls at Gatwick heading for Syria

A new website giving parents and teachers advice on protecting children from extremism is being launched at Bethnal Green Academy in east London - where three pupils are thought to have fled to Syria.

Monday, January 11, 2016
Seven months pregnant Tulip Siddiq was allegedly told she was

Heavily pregnant Hampstead and Kilburn MP Tulip Siddiq was admonished for breaking Parliamentary procedure by leaving a debate to eat, it has been claimed.

What is this?

Near You Now

Don't Miss...

Competitions

Sony Smart Ultra HD 55'' LED TV

Enjoy the ultimate entertainment experience in your living room with the Sony Smart Ultra 55’’ LED TV. Be the envy of all your friends with this huge TV- you can change your living room into your own cinema! Get the boys around to watch the football or get the girls around to watch the DVD of 50 Shades.. this is a prize that everyone would enjoy! Stand a chance to upgrade your current entertainment system by wining this fantastic prize.

Read more
Surface Pro 4

Technology is ever evolving. We are constantly being shown new technology that is innovative, revolutionary and designed to make life easier for us all. Gone are the days of dial up modems and computers so large you needed half a room to store it. We are in the age of smooth, small and sleek. Companies are all trying their best to create technology that is easy to transport and guaranteed to be user friendly.

Read more

Latest Tech News

Transport