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London has long been an important part of Islamic finance, its own Sukuk launch a few years ago was a pivotal moment in the growth of Islamic finance
editor's pickWednesday 31, October 2018
While 2018 has brought many milestones to the Islamic finance world, one in particular was the Islamic Development Bank’s visit to the London Stock Exchange. One issuance, however, was just the beginning. London would like to stay an integral part of Islamic finance. “Islamic finance is growing around the world. There is more and more demand for Islamic finance. As the financial capital of the world, it’s really important that we are for products that are in demand and London should be at the heart of Islamic finance,” said Mayor of London Sadiq Khan.
The Islamic Development Bank is a leader of the Islamic financial community, one of the world’s largest multilateral development banks. The IsDB brings together 57-member countries across four continents, touching the lives of 1 in 5 of the world’s population, with an annual volume of operations above $10 billion and subscribed capital of $33 billion. “Sukuk are based on risk sharing contracts backed by real assets. We want to explore the great growth and investment opportunities that this product offers the whole finance industry, here in the UK, and in our Member Countries and across the world,” HE Dr. Bandar Hajjar, President of the Islamic Development Bank, said.
Hajjar echoed the statements of Mayor Khan. “I truly believe that Sukuk can change the world for the better for investors but also for the billions of people around the world who benefit from the growth that it drives. I want the UK to be at the heart of this movement,” said Hajjar. “Islamic capital markets are based on two main pillars—the first one is the Sukuk market, and the other is equity participation. It is very important that if we are to raise long term investment that we bring experts together to discuss the future of Islamic finance in general and the Sukuk market in particular,” he continued. Other leading figures in the financial world of London have also expressed their support for London’s Islamic finance future. “London, as the world’s leading international financial centre, is uniquely well-positioned to support growth in Islamic sector financing.
Our world leading banking, insurance, legal and tech sectors are the strengths and ideal partners for the Islamic finance community, “ said Peter Estlin, Alderman for the World of Coleman Street. The IsDB has also made partnerships with educational institutions in London as well. This July, Queen Mary University of London (QMUL) announced a new partnership with the Islamic Development Bank which will co-fund fifty PhD students over the next five years. The scholarships, part of the IsDB’s Merit Scholarship Scheme for High Technology, will offer 10 PhD students per year the opportunity to conduct their doctoral studies in QMUL’s Faculty of Science and Engineering.
The IsDB’s scheme is focused around empowering people for a sustainable future by driving innovation, partnerships, and making Islamic finance a part those value chains. Candidates from any of the Islamic Development Bank’s fifty-seven member countries will be eligible to apply for these QMUL-IsDB scholarships, which will provide full overseas tuition fees and