Islamic Finance in the United Kingdom : Factors behind Its Development and Growth

This paper aims at capturing the latest developments and growth of Islamic finance (IF) in the UK. The study also aims at shedding light on the driving factors that have been attributed to the rise of this phenomenon in this country. To meet these objectives, the paper utilizes historical and thematic analytical methodologies to draw some lessons and recommendations. The results show that the UK is the country number one in the West, in view of the number of institutions and Universities involved in the educational and training aspects relating to IF, the number of licensed intermediaries providing ‘Islamic’ financial services, and the number of law firms involved in legal and consultancy services in the IF field. Among the prime factors that have been explored to explain the gradual, but steady progress of IF in the country, are: (i) – The UK’s government proactive role, and (ii) - The active role played by a number of UK Muslim organizations.