Islamic Finance assets have been consistently increasing globally by an average of 6.5% in recent years, with the market expected to reach USD3.4trn globally by 2024. Moreover, the popularity of Islamic Finance products is not just growing amongst the Muslim population: the data indicates that more than a third of the biggest UK Islamic Finance Bank’s consumers are non-Muslim. This can be attributed to the continued growth of ESG (environmental, social and governance), which shares some key principles with Islamic Finance - for example, distribution for all, fair trading, judicious spending of wealth, and the well-being of the wider community.
The UK is now established as the hub for Islamic Finance (IF) in the European region, with five fully Shariah-compliant banks and Islamic Finance assets totalling around USD6bn. The Islamic Finance retail market has really taken off in recent years with the launch of a series of Shariah-compliant products, including Individual Savings Accounts, Home Purchase Plans (HPPs), pension schemes, business start-up financing and an interest-free alternative to student loans.