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. Read More

What years does this UK Islamic Finance Market cover, and what was the market size in 2023?

In 2023, the UK Islamic Finance Market size was estimated at USD 7.27 billion. The report covers the UK Islamic Finance Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the UK Islamic Finance Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029. Read More

UK Islamic Finance Market Size

Market Size of UK Islamic Finance Industry

Study Period	2020 - 2029
Base Year For Estimation	2023
Market Size (2024)	USD 7.5 Billion
Market Size (2029)	USD 8.74 Billion
CAGR (2024 - 2029)	3.12 %
Market Concentration	Low
Major Players *Disclaimer: Major Players sorted in no particular order

UK Islamic Finance Market Analysis

The UK Islamic Finance Market size is estimated at USD 7.5 billion in 2024, and is expected to reach USD 8.74 billion by 2029, growing at a CAGR of 3.12% during the forecast period (2024-2029).

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 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 Size Summary

The UK Islamic banking sector is a significant player in Europe, holding the largest share of Islamic banking assets on the continent, excluding Turkey. Despite being a smaller player globally, the UK has experienced substantial growth in Islamic finance over the past decade, driven by proactive government initiatives and a supportive regulatory environment. The sector benefits from a robust ecosystem comprising banks, financial institutions, and advisory firms that specialize in Sharia-compliant products and services. The Financial Conduct Authority (FCA) oversees these activities, ensuring compliance with Islamic principles, which prohibit interest and emphasize ethical standards. The market is characterized by a mix of established players and emerging fintech companies, with digital innovation playing a crucial role in expanding the reach and appeal of Islamic finance.

The UK Islamic finance market is fragmented, with major players like Gatehouse Bank, Al Rayan Bank, and Abu Dhabi Islamic Bank dominating the landscape. However, technological advancements and product innovations are enabling mid-size and smaller companies to enhance their market presence. The rise of tech-enabled Sharia-compliant banks is notable, particularly in regions undergoing economic modernization, such as Central Asia. The sector's growth is further supported by the increasing awareness of Islamic finance principles and the successful issuance of sukuk, which attract institutional investors from various regions. Partnerships, such as the one between Nomo Bank and Abu Dhabi-based banks, highlight the sector's expanding international reach and the growing interest in digital banking solutions.

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UK Islamic Finance Market Size - Table of Contents

1. MARKET DYNAMICS
1. 1.1 Market Overview
2. 1.2 Market Drivers
  1. 1.2.1 Increase in International Business and Trade
  2. 1.2.2 Increase in Muslim Population
3. 1.3 Market Restraints
  1. 1.3.1 Limited Availability of Islamic Banking
4. 1.4 Market Opportunities
  1. 1.4.1 Diversification for Conventional Banks
5. 1.5 Porter's Five Forces Analysis
  1. 1.5.1 Bargaining Power of Buyers/Consumers
  2. 1.5.2 Bargaining Power of Suppliers
  3. 1.5.3 Threat of New Entrants
  4. 1.5.4 Threat of Substitute Products
  5. 1.5.5 Intensity of Competitive Rivalry
6. 1.6 Insights of Technology Innovations in the Market
7. 1.7 Impact of COVID-19 on Industry
2. MARKET SEGMENTATION
1. 2.1 By Financial Sector
  1. 2.1.1 Islamic Banking
  2. 2.1.2 Islamic Insurance 'Takaful'
  3. 2.1.3 Islamic Bonds 'Sukuk'
  4. 2.1.4 Other Financial Institutions (OIFL's) and Islamic Funds