London 'is home to Islamic finance'

Gulf Daily News: Islamic finance has found a natural home in London.That was the claim made by Islamic Finance Council UK executive board member, Omar Shaikh, yesterday ahead of the opening of the 15th World Islamic Banking Conference (WIBC) in Bahrain this morning.

This is the second time the event has supported a British pavilion, hosted by UK Trade and Investment (UKTI), and reflects growth plus the diversity and complimentary skills companies contribute to Islamic finance.

"Islamic financial institutions come to London because it's the leading financial capital of the world," said Mr Shaikh.

"That status doesn't happen overnight or by chance. It takes robust frameworks, leading advisory firms, strength and depth in capital markets and intellectual capital. These are key components built up over decades.

"So when Islamic finance institutions decide where to set up, it's no surprise they choose London - a European hub with clear regulation, a deep talent pool and a two million strong domestic retail market.

"The result is the largest, and most liquid market for Islamic financial products outside the GCC states and Malaysia.

"There's an infrastructure laid down in London, as a global financial centre, that facilitates the development of financial instruments," said London Stock Exchange debt product manager Darko Hajdukovic

"It isn't only domestic players such as the Islamic Bank of Britain and Gatehouse that are keen to explore the British market's advantages. Gulf and other investors, such as the Commercial Bank of Qatar, have identified London as a regional hub for Islamic finance, often listing on the London Stock Exchange, one of the largest listing venues for Sharia-compliant products in the world.

"London was successful in creating new financial instruments in the past and the Treasury has worked to create a tax regime that does not put additional tax burdens on these types of products," he said.

UKTI chief executive Andrew Cahn said in these tough times, it's more important than ever that we make the most of growing sectors like Islamic finance.

"That's why UKTI is helping open doors to British financial services expertise and ensure the country is a leading partner of choice," he said.