The City’s top lobby group is urging the Government to make sure any laws introduced post-Brexit do not dent demand for Islamic finance as enquiries from banks to set up Shariah-compliant services soar.
TheCityUK, which represents Britain’s banks and financial institutions, has sent a 32-page report to the UK Government highlighting that assets of UK firms offering Islamic finance services surpassed $5bn (£3.8bn) in 2016, up 11pc in two years.
Eager to safeguard the sector’s growth at a time when London is fighting to retain its status as Europe’s financial hub, the group is calling on the Government to “make sure legislation is in place so that corporate Sukuk’s [Islamic bonds] can thrive,” said Wayne Evans, the group’s adviser in international strategy.
“We’re looking to keep lobbying, talking to HMG [Her Majesty's Government], to make sure they are aware of the demand,” Mr Evans told The Telegraph. “Enquiries are certainly going up [but we] need to make sure new legislation being introduced [post-Brexit] doesn’t have an implication on Islamic finance.”