A Major New Report Finds Islamic Finance In Britain Could Unlock £2.5bn A Year For The UK Economy.
Britain could unlock billions in new investment, boost productivity and make itself a global leader in ethical finance, according to a major new report by British think tank Equi.
The groundbreaking new report,‘Growth with Purpose: The Untapped Potential of Islamic Finance ’ , finds that the UK is uniquely placed to become the leading hub for Islamic Finance in the Western world, with the potential to generate £2.5 billion a year for the UK economy. This would be more than the £2.3 billion expected from the Australia free trade deal.
This new research conducted by Equi has found that the UK Islamic Finance sector is already estimated to be worth £6 billion and is part of a global industry which has grown by over 20%, presenting a unique opportunity for Britain to play a leading role in a rapidly expanding sector.
Equi’s has also found a real demanding in Britain for Islamic Finance, both amongst the British Muslim population, but also potential amongst non-Muslim communities. The findings included 86% of British Muslims saying they want an Islamic banking provider, and 30% of non-Muslims saying they would be willing to switching to Islamic finance and/or ethical or non-interest alternative products comparable to conventional products if it were offered.
Some Key Data from the New Report: Islamic finance could generate £2.5 billion a year for the UK government. This is more than the £2.3 billion expected from the Australia free trade deal. The UK Islamic Finance sector is estimated to be worth £6 billion, while the global industry more broadly has grown by more than 20% in recent years. 64% of Muslims prefer Islamic finance over other alternative finance products and services. While 86% of British Muslims want an Islamic banking provider, only just over half currently hold an Islamic bank account. 30% of non-Muslims said they would be willing to switch to Islamic finance products if they were offered a service comparable to conventional products. British Muslims are helping drive demand for ethical and green finance more broadly. 72% of Muslims are aware of green finance, compared with 42% of non-Muslims, and Muslims are 20% more likely to use green finance products.
Prof Javed Khan, Managing Director of Equi said:
“Islamic Finance is not a niche issue but a major economic opportunity hiding in plain sight.
At a time when the UK is searching for sustainable growth, this is about unlocking billions in investment, supporting innovation and ensuring our financial system works for everyone.With the right policy support, Britain can become the global capital of Islamic Finance, driving growth, boosting productivity and reinforcing our position as a world-leading financial centre.”
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