UK 'committed to Islamic banking

UK Trade & Investment (UKTI) has highlighted Britain's commitment to Shariah-compliant banking at an event in London.Speaking at the World Islamic Banking Conference, UKTI chief executive officer Andrew Cahn noted the recent growth in Islamic finance and pointed to its resilience through the ongoing economic slowdown and turbulent market conditions.

The sector, he noted, is currently worth £250 billion worldwide, but has annual growth of 15 per cent predicted for the near future.

Mr Cahn explained: "The huge financial flows currently coming out of the Gulf and some Asian countries are driving growth in the Islamic finance industry.

"Investors want and expect their investments to be Shariah compliant and this demand is only going to become more prevalent in the near future.

In the first half of 2008, the UK's fifth Islamic bank, Gatehouse Bank, was opened its door to business, while a Shariah-compliant insurance company, Principle Insurance, began trading.

The Financial Services Authority has previously said London is becoming a global hub for Islamic finance and pledged to support the growing sector.