Bordeaux - British Prime Minister David Cameron made official the launch of a new Islamic Market Index in London.
Bordeaux – British Prime Minister David Cameron made official the launch of a new Islamic Market Index in London.
David Cameron is keen to make London an international center of Islamic finance and wants to attract investors from Islamic countries to the island. He revealed the news during the World Islamic Economic Forum which is currently taking place in the British capital, telling political leaders and businessmen “I want London to stand alongside Dubai as one of the great capitals of Islamic finance anywhere in the World. “
The Shariah, Islamic law, is at the center of Islamic finance. No interest on business dealings can be charged and deals must be based on tangible assets. There is no speculation and dealing in futures are banned.
Even though Islamic finance is still far less used than mainstream finance, it is expected to become more and more popular. The crisis that hit the world in 2008 is partly responsible for this phenomenon, since actors are reluctant to trust the mainstream system. Gulf investors seeking to invest oil revenue and pious Muslims are also more likely to be attracted by this alternative.
The market in Islamic investments has grown quickly since 2006, and its value is expected to hit 1.3 trillion pounds ($2 trillion) next year.
The Treasury hopes to launch an Islamic bond – called a sukuk – worth £200m as early as next year.
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