LONDON (AP) Prime Minister David Cameron is launching a new Islamic Market Index on the London Stock Exchange on Tuesday, part of a wider British effort to tap into the burgeoning market in Islamic finance.
According to prepared remarks released to journalists ahead of time, Cameron is expected to say that the British capital is "the biggest center for Islamic finance outside the Islamic world. And today our ambition is to go further still."
"I don't just want London to be a great capital of Islamic finance in the Western world," he is due to say. "I want London to stand alongside Dubai as one of the great capitals of Islamic finance anywhere in the World."
The market in Islamic investments has grown dramatically since 2006, and its value is expected to hit 1.3 trillion pounds ($2 trillion) next year. Malaysia's capital, Kuala Lumpur, is regarded as its hub, but London has been courting the industry aggressively.
Islamic finance conforms to Islamic law, or Shariah, which forbids charging interest and requires deals to be based on tangible assets. Speculation is banned, as is dealing in futures. Although still small compared to the world of mainstream finance, Islamic finance is expected to hold growing appeal for Gulf investors seeking to invest oil revenue or pious Muslims who want retail Islamic banking services.
