UK Excellence in Islamic Finance ukti.gov.uk/invest Contents Foreword 01 NewcastleUniversityBusinessSchool EigerTradingAdvisorsLtd 47 IslamicFinanceandLawStudies 26 Welcome 03 Ernst&Young 48 TheOxfordCentreforIslamicStudies 27 UKExcellenceinIslamicFinance 04 IFAAS 49 UniversityofEastLondon’s InvestinginUKInfrastructure TheIslamicFinanceCouncilUK 50 RoyalDocksBusinessSchool 28 andRegenerationProjects 06 KPMG 51 WhatisIslamicFinance? 09 Banking 29 LondonStockExchange 52 HistoryofIslamicFinanceintheUK 10 ABCInternationalBankplc PwCLLP 53 DevelopmentofIslamic IslamicFinancialServices 30 SimplySharia 54 FinancialInstitutionsintheUK 12 AbuDhabiIslamicBank(ADIB) 31 RegulatoryDevelopment TheBankofLondon Legal 55 ofIslamicFinanceintheUK 13 andTheMiddleEast 32 Allen&Overy 56 IslamicFinanceEducationintheUK 14 Citi:LeaderinGlobalIslamicBanking 33 AshurstLLP 57 Business Profiles EuropeanIslamicInvestmentBankPlc 34 CliffordChance 58 EducationandTraining 16 GatehouseBankplc 35 Dentons 59 AstonBusinessSchool 17 HSBC 36 FreshfieldsBruckhausDeringerLLP 60 BangorBusinessSchool 18 IslamicBankofBritain 37 HoganLovells 61 CambridgeJudgeBusinessSchool, J.P.Morgan 38 King&Spalding 62 UniversityofCambridge 19 Mashreq 39 Linklaters 63 TheCentreforIslamicFinance StandardCharteredSaadiq 40 attheUniversityofBolton 20 NortonRoseFulbright 64 QIB(UK) 41 CentreofExcellenceforProfessional SGHMartineauLLP 65 TraininginIslamicFinance 21 Simmons&Simmons 66 FinancialandProfessionalServices 42 DurhamIslamicFinanceProgrammes 22 Trowers&HamlinsLLP 67 AberdeenAssetManagement 43 TheICMACentreatthe HenleyBusinessSchool 23 CobaltUnderwriting 44 Getthesupportyouneedtosucceed 68 TheIslamicFinanceQualification(IFQ) 24 DDCAPGroup 45 LondonSchoolofBusiness Deloitte 46 andFinance 25 UKExcellenceinIslamicFinance 01 Foreword The future of Islamic finance in the global economy looks bright. With 10 of the world’s 25 fastest growing markets in Muslim- majority countries, industry forecasts estimate that Islamic investments might grow to £1.3 trillion by 2014. TheUK–andLondoninparticular–hasalreadybecomeacentre forIslamicfinance.MorethanadozenbanksdeliverIslamicfinance transactions.Thereishardlyalargeprofessionalservicesfirmthat doesnothavespecialistIslamicfinanceteams.AndIslamicfinance hashelpedtransformLondon’sskylinebyfinancinginwholeorinpart developmentssuchasTheShard,ChelseaBarracks,Harrodsand theOlympicVillage. IamthereforedelightedthatLondonisthefirstcityoutsideofthe IslamicworldtohosttheWorldIslamicEconomicForum(WIEF), demonstratingtheUK’spositionasaglobalpartnerofchoice forIslamicfinancewiththeexpertise,innovationandservices fundamentaltotheindustry’sgrowth. Rt. Hon. David Cameron MP PrimeMinister UKExcellenceinIslamicFinance 03 Welcome As the Ministerial lead on Islamic Finance, I am delighted to showcase the incredible opportunities for Islamic finance in the UK. Withoutstandingspecialistexpertiseandleadingglobalservicesand academicinstitutions,theUK’sofferofexcellenceinIslamicfinance istrulyunique. ThisbrochureprovidesanoverviewoftheIslamicfinancelandscapein theUK;mappingthesector’shistory,itsphenomenalriseandoutlining theunrivalledknowledge,expertiseandexperiencetheUKoffers acrossallsectorsfromeducationtointernationallawandbanking. Businessprofilesfromkeyindustryplayersillustratetheexceptional financialandprofessionalservicesofferedwithintheUKandprovide contactdetailsforthosewishingtofindoutmore.Asthisbrochure outlines,theUKisdeterminedtobetheglobaldestinationfor Islamicfinance. That’simportant,becausetheindustryissettogrowsignificantlyin theyearsahead.Withapotentialmarketbaseofmorethan2billion people,itisnotsurprisingthatIslamicfinanceinvestmentsglobally areforecasttogrowbeyond$2trillionin2014. TheUKiswell-placedtoplayakeyroleinthisexpansion.Itisno coincidencethatLondonwaschosentohostthe9thWorldIslamic EconomicForum–thefirsttimetheprestigiouseventhasbeenheld outsidetheMuslimworld.Thisdemonstrates–likethecontentofthis brochure–thattherehasneverbeenabettertimetotakealookat justhowmuchtheUKhastooffer. Rt. Hon. Baroness Warsi PC SeniorMinisterofStateatthe ForeignandCommonwealthOffice 04 UKExcellenceinIslamicFinance UK Excellence in Islamic Finance The UK has been providing Islamic Financial Services for over 30 years and Government policy over the last decade has created a fiscal and regulatory framework that encourages the growth of Islamic finance. TheglobalmarketforIslamicfinance playingamajorrole.Domesticbanks Regionalcentresofexcellenceare attheendoflastyearwasworth arealsomeetingthedemandfor nowestablished.Inthefieldof aroundUS$1.3trillionaccordingto Islamicfinanceservicesthrough educationnewstandardsand theUKIslamicFinanceSecretariat. theexpansionoftheirIslamic qualificationsinIslamicfinanceare ThetotalvalueofShariacompliant financeoffering. beingofferedbyfourprofessional assetshasgrownby150percentsince institutesandatleasttenuniversities Islamicfinanceisincreasinglybeing 2006.TheUKistheleadingwestern andbusinessschoolsacrosstheUK. usedinmajorinfrastructureprojects countryandEurope’spremiercentre intheUKsuchasTheShardofGlass, TheLondonStockExchangeisakey forIslamicfinancewithUS$19billion theOlympicVillageandthe globalvenuefortheissuanceof ofreportedassets. redevelopmentsofChelseaBarracks Sukuk.TodateoverUS$34billionhas TheremovalofdoubletaxonIslamic andBatterseaPowerStation.There beenraisedthrough49issuesof mortgages,theextensionoftaxrelief ispotentialforfurtherfundingof thesealternativefinanceinvestment onIslamicmortgagestocompaniesas theUK’sinfrastructurerequirements bondsontheLondonStockExchange. wellastoindividuals,andthereform giventheGovernment’spositive Sevenexchangetradefundsandtwo ofarrangementsforissuesofdebt andprogressiveattitudetowards exchangetradeproductsarealso haveresultedintheUnitedKingdom Islamicfinance. quotedontheLondonStockExchange. becomingthekeywesterngateway Wehavethelargestlegalservices Withallthesefactorsinplace,the forIslamicfinancewithLondonasits marketinEuropeandaspartofthis potentialforgrowthinUK-based worldleadingfinancialservicescentre. over25lawfirmswithofficesintheUK Islamicfinancialservicesis Morethan20internationalbanks aresupplyinglegalservicesrelating immeasurable.TheUKfinancial operatingintheUKareworkingin toIslamicfinancefortheglobaland servicessectorisaspringboardfor Islamicfinance.Sixofthesearefully domesticmarkets. globalgrowthandthepartnerof Shariacompliant,morethananyother choiceinthedeliveryofIslamicfinance TheUK’slargestaccountants, countryinEurope.Britishbanksare excellenceinthewesternworld. consultantsandprofessionalservice alsoactiveintheinternationalSukuk firmsallhaveIslamicfinance market.GlobalSukukissuance departmentsprovidingtrusted inthefirstquarterof2012was advisoryservicestoUKand US$43.3billion,almosthalfthetotal internationalclients. forthewholeof2011withUKbanks 06 UKExcellenceinIslamicFinance Investing in UK Infrastructure and Regeneration Projects With a successful and robust regime for delivering investment in infrastructure and regeneration projects, the UK has the potential to offer a huge and exciting range of new opportunities for Sharia compliant investments. Withforeignownership(shareholding) The National Infrastructure Plan Investment in the UK’s currentlystandingataround40per ThissetsouttheUK’sambitionfor Regeneration Sector cent,theUKhasprovedanattractive infrastructureinvestment: Thereisgreatinvestorconfidencein marketforglobalinvestors. theUKregenerationsector.Figures —Progressinallareasimplementing showthetotalfloorspacecompleted Recentoverseasinvestmentsinclude: theNationalInfrastructurePlan2011; in2012was600,000squaremetres —Masdar’s20percentinvestment —£330billionofinfrastructure –doublethatfor2009-2011–and inLondonArrayOffshoreWind; investmentoverthenexttenyears; currentprojectsunderwayintheUK willleadtothedevelopmentof —CheungKongInfrastructure’s —Additionalpublicinvestmentin 220,000homes. purchaseofNorthumbrianWater InfrastructureaspartofAutumn (£2.4billion); Statement2012; Thereisastrongpipelineof investmentopportunitiescovering —TheacquisitionoftheBattersea —PriorityfocusonTransport,Energy, alllanduses,scalesandstages PowerStationprojectbya CommunicationsandWater&Waste ofdevelopment.Over£100bn MalaysianConsortium sectors; ofinvestmentisrequiredfor (£400million); —Alistof40priorityprogrammesand regenerationprojectscurrently —AdvancedBusinessParks£1billion over550infrastructureprojects inprogress. commitmenttodevelopanewAsia thattheGovernmentiscommitted Thekey‘shovelready’regeneration FinanceDistrictinEastLondon; todeliverinpartnershipwiththe projectsrequiringfurtherinvestment privatesector; —Marubeni’sacquisitionof49.9per anddevelopmentpartnerstounlock centoftheGunfleetSandsoffshore —Over85percentoftheexpected furtherstagesconsistof: windfarm(c.£200million);and investmentprivateorpart-private —Inexcessof150projectswithvalues funded; —GlobalInfrastructurePartners ofover£100m; purchaseofEdinburghAirport —Prioritisingthedeliveryofthese —100projectswithvaluesover (c.£800million). programmesthroughthecreation £250m; ofanInfrastructureCabinet Committee. —Over40projectsrequiring£500m ormoreinvestment; —25projectswithinvestment requirementsinexcessof£1bn. UKExcellenceinIslamicFinance 07 Summary of Private Sector Investment in UK infrastructure Energy Offshore Wind:Apotentialinvestmentprogrammeinexcessof£100billion Nuclear:Uptoeightindividualsiteswithcapitalvalueperprojectof£8-9billion Offshore Transmission:Aninvestmentprogrammeof£15billiontosupportoffshorewindprojects High Speed 2:AhighspeedraillinefromLondontotheNorth.Potentialinvestmentvalueestimate ofc.£32billion Transport Rolling