Islamic finance deemed to be suitable for modern western society - IFN

Islamic finance deemed to be suitable for modern western society

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UK: A recent survey conducted by independent research company 2Europe has revealed that a majority of non-Muslim UK consumers believe that Islamic finance is relevant to all faiths and is appropriate for modern western society. The research is the first national survey conducted to measure consumer appetite for Islamic finance in the UK. The survey, which was conducted on behalf of the Islamic Bank of Britain (IBB), seeks to assess the understanding and attitudes of British consumers towards Islamic finance. Findings from the survey show how British consumers (both Muslims and non-Muslims) currently use their Islamic finance products and the likelihood of repeated usage in the future. Carried out via telephone interviews, the research involved 300 respondents: comprising British Muslims and non-Muslims, some of which were existing customers of the IBB. Sixty six percent of the participants opined that Shariah compliant finance is appropriate in a modern western society such as the UK; 65% understood that the mechanics of Islamic banking and conventional banking are different; 60% agreed that Islamic finance is relevant for all creeds; 58% considered Islamic finance to be an ethical system of finance which takes into account social responsibility; and 53% were aware that Islamic finance system is based on ethical principles derived from trade, entrepreneurship and risk-sharing. In terms of their inclination for repeat use of Shariah compliant financing, 81% of IBB customers (both Muslim and non-Muslim) were in favor. According to the IBB, the survey bears testament to the strong growth potential of Islamic finance within the Muslim market. Commenting on the findings, Sultan Choudhry, the managing director of IBB, said: “The bank has broken new ground by conducting this research, which will shape how the retail market for Islamic finance evolves.” The IBB recently received a capital injection of GBP75.8 million (US$123.64 million) from new Qatari owners Masraf Al Rayan, bringing its total paid up capital to GBP100 million (US$163.12 million). The capital will fund expansion plans including a growth of UK retail operations and the development of UK and GCC commercial business.