Islamic Finance in the U.K. is still learning to crawl, report Says

Islamic finance is unlikely to make significant inroads in the U.K.’s financial services industry over the coming years, S&P Global Ratings said in its report “Islamic Finance In The U.K. Is Still Learning To Crawl.”

U.K.-based Islamic banks’ total assets represent less than 0.1% of the entire banking system, and there have only been three sukuk issuances over the past decade.

Although the complexity of sukuk issuances and the perception of little added value seem to curb the market appetite, efforts to align Islamic finance with the increasing interest in environmental, social, and governance principles and fintech could generate more attention.