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Islamic Finance in the United Kingdom: Factors Behind its Development and Growth

Author

Listed:
  • BELOUAFI, AHMED

    (King Abdul Aziz University)

  • CHACHI, ABDELKADER

    (Islamic Research and Training Institute)

Abstract

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.

Suggested Citation

  • Belouafi, Ahmed & Chachi, Abdelkader, 2014. "Islamic Finance in the United Kingdom: Factors Behind its Development and Growth," Islamic Economic Studies, The Islamic Research and Training Institute (IRTI), vol. 22, pages 37-78.
    • Handle: RePEc:ris:isecst:0002
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    References listed on IDEAS

    as
    1. Hyman P. Minsky, 1993. "Finance and Stability: The Limits of Capitalism," Economics Working Paper Archive wp_93, Levy Economics Institute.
    2. di Mauro, Filippo & Caristi, Pierluigi & Couderc, Stéphane & di Maria, Angela & Ho, Lauren & Grewal, Beljeet Kaur & Masciantonio, Sergio & Ongena, Steven & Zaher, Sajjad, 2013. "Islamic finance in Europe," Occasional Paper Series 146, European Central Bank.
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    4. Khan, Tariqullah & Chapra, Mohammad Umar, 2000. "Regulations and Supervision of Islamic Banks (Occasional Papers)," Occasional Papers 85, The Islamic Research and Teaching Institute (IRTI).
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    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

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    2. Riaz, Umair & Burton, Bruce & Monk, Lissa, 2017. "Perceptions on Islamic banking in the UK—Potentialities for empowerment, challenges and the role of scholars," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 47(C), pages 39-60.
    3. Riaz, Umair & Burton, Bruce & Fearfull, Anne, 2023. "Emotional propensities and the contemporary Islamic banking industry," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 94(C).
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    5. Federica Lanzara, 2023. "Islamic Finance as Social Finance: A Bibliometric Analysis from 2000 to 2021," International Journal of Business and Management, Canadian Center of Science and Education, vol. 16(9), pages 107-107, February.
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    7. Juhro, Solikin M. & Syarifuddin, Ferry & Sakti, Ali, 2022. "Inclusive Welfare: On The Role of Islamic Public-Social Finance and Monetary Economics," MPRA Paper 113788, University Library of Munich, Germany.

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    Keywords

    Islamic finance; banking; finance; FSA; UK;
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