London aims to be one of the largest capitals of Islamic finance stand alongside Dubai and Kuala Lumpur

London, (IINA) – London is bidding to become a leading centre for sharia-compliant finance, according to the UK's foreign minister for the Middle East Tobias Ellwood.

Speaking at The Telegraph's Middle East Congress on Wednesday, Ellwood, undersecretary of state at the Foreign Office, said the capital had ambitions to stand alongside Dubai and Kuala Lumpur as a global hub for Islamic finance, The Telegraph reported.

Noteworthy that Britain became the first country outside the Muslim world to issue an Islamic bond, known as Sukuk, last year. The £200m bond attracted healthy investor interest and was the first step in encouraging wider investment from the region.

Britain was also committed to promoting a "peaceful and prosperous" Middle East and expanding trade ties with the region, which topped £35bn last year, said Ellwood.

He added, “We must promote inclusive political participation and job creation across the region.” It is noteworthy that there are currently six Islamic banks in Britain, while another 20 lenders currently offer Islamic financial products and services, more than any other Western country.

The sovereign Sukuk market, which makes up only 0.1pc of global financial assets, is predicted to expand by 20pc a year, according Robert Gray, chairman of debt finance at HSBC.