Islamic Banking in the UK Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

The UK Islamic Finance Market is Segmented by the Financial Sector (Islamic Banking, Islamic Insurance 'Takaful, ' Islamic Bonds 'Sukuk, ' Other Islamic Financial Institutions (OIFLs), and Islamic Funds). The Report Offers the Value (USD) for the Above Segments.

Islamic Banking in the UK Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

UK Islamic Finance Market Size

UK Islamic Finance Market Summary
Study Period 2020 - 2030
Base Year For Estimation 2024
Forecast Data Period 2025 - 2030
Market Size (2025) USD 7.73 Billion
Market Size (2030) USD 9.02 Billion
CAGR (2025 - 2030) 3.12 %
Market Concentration Low

Major Players

UK Islamic Finance Market Major Players

*Disclaimer: Major Players sorted in no particular order

Compare market size and growth of UK Islamic Finance Market with other markets in Financial Services and Investment Intelligence Industry

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UK Islamic Finance Market Analysis

The UK Islamic Finance Market size is estimated at USD 7.73 billion in 2025, and is expected to reach USD 9.02 billion by 2030, at a CAGR of 3.12% during the forecast period (2025-2030).

The UK is a relatively small player in the global Islamic banking assets. However, the UK is a major player in Europe, accounting for 85% of all European Islamic banking assets and having the largest amount of Islamic banking assets in Europe (excluding Turkey). The UK has seen rapid growth in Islamic Finance over the last decade with the government being very active in promoting and promoting the sector. 

The UK was home to the first-ever UK-based Islamic financial institution, and it has the highest number of Sharia-compliant assets of any non-Muslim country in the EU. The government's initiative to promote Islamic finance in the UK has paid off, with the second government sukuk issued in last year which has been sold to institutional investors across the UK, Middle East and Asia. The sector is expected to continue to grow over the next decade.

UK Islamic Finance Industry Overview

The UK Islamic Finance Market is fragmented with many players. The report covers major international players operating in the UK Islamic Finance Market. In terms of market share, some of the major players currently dominate the market, which includes Gatehouse Bank, Al Rayan Bank, Abu Dhabi Islamic Bank, QIB UK, Bank of London, and The Middle East. However, with technological advancement and product innovation, mid-size to smaller companies are increasing their market presence by securing new contracts and tapping new markets.

UK Islamic Finance Market Leaders

  1. Gatehouse Bank

  2. Al Rayan Bank

  3. Abu Dhabi Islamic Bank

  4. QIB UK

  5. Bank of London and The Middle East

  6. *Disclaimer: Major Players sorted in no particular order
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UK Islamic Finance Market News

  • April 2023: London-based Nomo Bank has announced an innovative new partnership with Abu Dhabi-based banks ADCB and Al Hilal Bank to bring digital UK banking to UAE nationals and residents.
  • January 2022: Non-core market sovereigns such as the UK, Maldives, and Nigeria also issued sukuk. Fitch-rated sukuk reached USD132.4 billion in 2021, 80.1% of which were investment-grade. Outlooks improved with the share of sukuk issuers, with Negative Outlooks falling to 8.8% in 4Q21 from 23.4% in 4Q20.

UK Islamic Finance Market Report - Table of Contents

1. INTRODUCTION

  • 1.1 Study Deliverables and Market Definition
  • 1.2 Scope of the Study

2. RESEARCH METHODOLOGY

3. EXECUTIVE SUMMARY

4. MARKET DYNAMICS

  • 4.1 Market Overview
  • 4.2 Market Drivers
    • 4.2.1 Increase in International Business and Trade
    • 4.2.2 Increase in Muslim Population
  • 4.3 Market Restraints
    • 4.3.1 Limited Availability of Islamic Banking
  • 4.4 Market Opportunities
    • 4.4.1 Diversification for Conventional Banks
  • 4.5 Porter's Five Forces Analysis
    • 4.5.1 Bargaining Power of Buyers/Consumers
    • 4.5.2 Bargaining Power of Suppliers
    • 4.5.3 Threat of New Entrants
    • 4.5.4 Threat of Substitute Products
    • 4.5.5 Intensity of Competitive Rivalry
  • 4.6 Insights of Technology Innovations in the Market
  • 4.7 Impact of COVID-19 on Industry

5. MARKET SEGMENTATION

  • 5.1 By Financial Sector
    • 5.1.1 Islamic Banking
    • 5.1.2 Islamic Insurance 'Takaful'
    • 5.1.3 Islamic Bonds 'Sukuk'
    • 5.1.4 Other Financial Institutions (OIFL's) and Islamic Funds

6. COMPETITIVE LANDSCAPE

  • 6.1 Market Concentration
  • 6.2 Company Profiles
    • 6.2.1 GateHouse Bank
    • 6.2.2 AI Rayan Bank
    • 6.2.3 Abu Dhabi Islamic Bank
    • 6.2.4 QIB UK
    • 6.2.5 Bank of London and The Middle East
    • 6.2.6 ABC International Bank
    • 6.2.7 Ahli United Bank
    • 6.2.8 Bank of Ireland
    • 6.2.9 Barclays
    • 6.2.10 BNP Paribas
    • 6.2.11 Bristol & West
    • 6.2.12 Citi Group
    • 6.2.13 IBJ International London
    • 6.2.14 J Aron & Co*
  • *List Not Exhaustive

7. MARKET OPPORTUNITIES AND FUTURE TRENDS

8. DISCLAIMER

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UK Islamic Finance Industry Segmentation

Islamic banking, also referred to as Islamic finance or Shariah-compliant finance, refers to financial activities that adhere to Shariah (Islamic law). Two fundamental principles of Islamic banking are the sharing of profit and loss and the prohibition of the collection and payment of interest by lenders and investors. A complete background analysis of the UK Islamic finance market, which includes an assessment of the national accounts, economy, and emerging market trends by segments, significant changes in the market dynamics, and the market overview, is covered in the report. 

The UK Islamic finance market is segmented by the financial sector. By the financial sector, the market is sub-segmented into Islamic banking, Islamic insurance 'takaful,' Islamic bonds 'sukuk,' other Islamic financial institutions, and Islamic funds. The report offers the value (USD) for the above segments.

By Financial Sector Islamic Banking
Islamic Insurance 'Takaful'
Islamic Bonds 'Sukuk'
Other Financial Institutions (OIFL's) and Islamic Funds
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UK Islamic Finance Market Research FAQs

How big is the UK Islamic Finance Market?

The UK Islamic Finance Market size is expected to reach USD 7.73 billion in 2025 and grow at a CAGR of 3.12% to reach USD 9.02 billion by 2030.

What is the current UK Islamic Finance Market size?

In 2025, the UK Islamic Finance Market size is expected to reach USD 7.73 billion.

Who are the key players in UK Islamic Finance Market?

Gatehouse Bank, Al Rayan Bank, Abu Dhabi Islamic Bank, QIB UK and Bank of London and The Middle East are the major companies operating in the UK Islamic Finance Market.

What years does this UK Islamic Finance Market cover, and what was the market size in 2024?

In 2024, the UK Islamic Finance Market size was estimated at USD 7.49 billion. The report covers the UK Islamic Finance Market historical market size for years: 2020, 2021, 2022, 2023 and 2024. The report also forecasts the UK Islamic Finance Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.

Islamic Banking in UK Industry Report

Statistics for the 2025 UK Islamic Finance market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. UK Islamic Finance analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.