Islamic Finance in the United Kingdom : Factors behind Its Development and Growth (original) (raw)
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Thunderbird International Business Review, 1999
Islamic finance has become increasingly significant in financial centres in the West, notably London, despite the regulatory hurdles presented by operating in a non-Muslim financial environment. The growth of Islamic finance partly reflects demand from Muslim resident and non-resident clients for Islamic deposit facilities and fund management services which involve shari'ah compliance. At the same time Islamic financing methods are viewed as a challenge and opportunity by Western bankers, many of whom have sought to get involved in this growing industry. In client driven societies there is a willingness by those in financial services to listen and learn from the experiences of Islamic banks, which in the longer run may bring a major break through for Islamic banking at the retail level in the West. London has emerged as the major centre for Islamic banking and finance in the West. The aim of this paper is to examine the characteristics of the British market for Islamic banking and financial services and analyse the activities of the major institutions involved. Regulatory issues are covered, which present a particular challenge in an environment where hitherto little account has been taken of the needs and preferences of Muslim clients, especially with regard to those who wish to respect the shari'ah which prohibits interest based transactions. Islamic financial products offered at the retail level include investment accounts, Islamic portfolio management, commodity and equity based fund management facilities and Islamic mortgages. Muslim corporate clients can obtain short and medium term trade finance as well as leasing terms for equipment, although this is on a very limited scale at present, with Al Baraka as the main provider. Islamic project finance can be arranged for both private and state organisations from Muslim countries, such financing usually being United States dollar denominated, although other currencies can be arranged on request.
The Development of Islamic Banking and Financial Institution in United Kingdom
The East Asian Journal of Business Management, 2018
Stabilité financière au Royaume-Uni : miser sur la prudence Le marché financier britannique a été sévèrement touché par la crise financière. Celle-ci a mis en évidence de nombreuses faiblesses des mécanismes de contrôle et des dispositifs de gestion et de résolution des crises. Le présent chapitre examine le cadre de contrôle et de réglementation, ainsi que les nombreuses réformes qui ont déjà été adoptées pour remédier à ses faiblesses. Il s'achève par des recommandations concernant de nouvelles réformes. Ce document de travail se rapporte à l'Étude économique de l'OCDE de le Royaume-Uni 2009
Introduction of Islamic finance in Brexit time, some tips for the West
2019
The characteristics of some more developed Islamic countries coincide with many western states, including Britain. Brexit and financial uncertainty generated could be overcome through the help of Islamic finance. Islamic banks with a strong propensity to CSR resist more to financial crises and develop more. The elements of strength and weakness are analyzed in the article provides some tips for its development in OECD countries. The analysis related to the use of financial instruments that can slow down the development and the possibility of adopting Islamic finance is considered in the analysis.
ROLE OF ISLAMIC FINANCIAL INSTITUTIONS IN PROMOTING ISLAMIC FINANCE
Since early 1970s, Muslims have witnessed the arrival of Islamic banking and finance to their countries. From that time, financial institutions began to increase the spread of financial projects in the region that are complaint with the Islamic principles. This paper examines the evolution and the important role; financial institutions may have in promoting the agenda of implementation a pure Islamic finance across the region. It also tries to put shade on the significant position and potentiality that these institutions have played in persuading and trying to propose Islamic finance to their respected governments and whether the adoption of Islamic finance and banking led to a collapse of the banking financial system in respected Muslim Countries. Finally, the paper explores how Islamic banking and finance became and remain to be a significant force for positive change in not only the Muslim region, but also in all over the globe. BACKGROUND
Sociogenesis of Islamic Finance in Europe
Kyoto Bulletin of Islamic Area Studies, 2022
Born in Muslim countries in the 1950s, the Islamic finance industry became a European social fact from the end of the 1970s. Islamic finance differs from conventional finance in its contractual practices of prescriptions issued from the Sharîa (Qur'an and Sunna). The European conventional use of financial capitalism contravenes these practices, such as the practice of interest, ribâ, hazard, gharar, speculation, maysir, and hoarding. This chapter observes the plasticity of Islamic and national norms in the European context and the arrangements needed to overcome the conflicts of norms, practices, and linguistics to create a European repertoire of Islamic finance. This repertoire is relayed by new European Muslim figures, including bankers, brokers, insurers, consultants, and jurisconsults, who root Islamic finance in Europe through their professional practices.
Critical Perspectives on Accounting, 2016
1 Kuran (1989) argues that Islamic economics did not emerge as a discipline in its own right until the mid-1960s. However, the writings of several prominent early Muslim scholars are still regularly cited in this context, for example: Abu Yusuf; (d.798); al-Mawardi (d.1058); Ibn Hazm (d.1064); al-Sarakhsi (d.1090); al-Tusi (d.1093); al-Ghazali (d.1111); al-Dimashqi (d. After 1175); Ibn Rushd (d.1198); Ibn Taymiyyah (d.1328); al-Shatibi (d.1388); Ibn Khaldun (d.1406). These works provide the foundation for more recent critical analyses of economic concepts and Islamic banking tools by
Problems and challenges facing the islamic banking system in the west: The case of the UK
Thunderbird International Business Review, 2004
This study investigates the main problems, challenges, and opportunities facing Islamic banking in the United Kingdom. The study reports the results of interviews that were undertaken with senior officials of several key financial institutions who have had many years of experience in dealing with Islamic banking. Our interviews revealed that, although by strict definition Islamic banks do not currently exist in the UK, London is one of the major centers for Islamic banking and finance. It is apparent that the experience of previously established Islamic institutions, such as Al-Baraka, has made other institutions realize that it is possible to provide Islamic banking services in the UK under nonbanking regulations. The interviews also revealed that the main problem that Islamic banking faces in the UK is heterogeneous clients and potential clients. Moreover, regulatory hurdles, competition from conventional banks, and lack of adequately qualified and trained personnel exacerbate the situation. The study concludes by identifying opportunities such as e-banking that may have a significant impact on the future of Islamic banking in the UK.
Islamic Banking and Finance Today : Issues and Implications
Islam and Civilisational Renewal, 2013
Far from being a curiosity, Islamic banking and finance products have come of age as a force to be reckoned with in the international financial market, breaking new ground and making giant strides by the day. This growth and geographical expansion has given rise to several challenges which can no longer be ignored but must be addressed by academics and scholars, professionals and practitioners in the industry, technocrats in government circles, standards boards and allied organisations, and Shariah experts and other jurist consultants. Some of these challenges pose a significant threat to the further growth and development of the industry, if left unaddressed. This paper attempts to look into such issues and to proffer solutions to them in order to ensure the even and healthy growth and development of the industry.