Professional Documents
Culture Documents
In The UK
Sultan Choudhury
CEO
Islamic Bank of Britain (IBB)
18 November 2014
Turin Islamic Economic Forum
Est. 2004
1st
wholly
Sharia 58k > 643m > 521m 30
products
compliant
retail
bank
UKs First wholly Sharia compliant retail bank Head office in Birmingham
Sharia compliant
Oversight via SSC & SCO Asset based & backed Pioneering
Young, have children, employed, less affluent than average 36% of Muslims use Islamic finance
Branch/Agency
IBB distribution
channels
Self Service
Since being granted a Banking licence, IBB has been busy building its proposition
Current
New
Use starts December 2014
Sharia
Pioneering Dedicated Aspirational Dependable
compliant
Video 1
Video 2
Lump sum
investments &
Regular savings F Accumulated Wealth savings
& childrens
savings
G Consolidating L Platinum
D Growing Rewards J
Assets Pensions
Established
Reserves
E Family Interest
H Balancing
M Sunset Security
Budgets
A Bright Futures
K Seasoned
B Single Endeavours
I Stretched Economy
N Traditional Thrift
Finances
C Young Essentials
Recognised
Savings
First time Market
home buyers Main mortgage Recognised
market Mortgage
Market
Age, gender Young vs. UK More male vs. UK More children vs. UK
& children 72.4% aged 18 to 45 58.1% vs. 48.3% 52.6% have family
vs. 51.5% under 18 vs. 28.1%
More renting & Council housing More terraced housing & flats
Property
vs. UK 40.5% vs. 32.1% vs. UK 64.3% vs. 44.8%
4 Cash ISA
Rank Penetration
(Muslim 18 + Postal Postal Area Muslims Adults into area 12 of the top 20 postal areas are
Population) Area Description Count 18 + (%) in the South, representing
Midlands 1 B Birmingham 137,139 1,414,030 9.70 522,800 adult Muslims (55% of the
South 2 E London E 127,774 651,547 19.61
population of the top 20 areas)
North 3 BD Bradford 71,055 429,445 16.55
South 4 N London N 62,385 605,115 10.31
North 5 M Manchester 52,645 890,465 5.91
South 6 IG Ilford 44,675 232,704 19.20
South 2 of the top 20 postal areas are in
7 NW London NW 43,206 437,309 9.88
North 8 OL Oldham 39,406 343,855 11.46 the Midlands, representing
North 9 BB Blackburn 38,982 370,783 10.51 170,900 adult Muslims (18% of the
South 10 SW London SW 36,785 717,410 5.13 population of the top 20 areas)
South 11 HA Harrow 34,737 337,262 10.30
South 12 SE London SE 33,822 743,209 4.55
Midlands 13 LE Leicester 33,815 760,210 4.45
South 14 W London W 33,301 443,497 7.51 6 of the top 20 postal areas are in
South 15 UB Southall 31,427 255,983 12.28
North
the North, representing 254,400
16 S Sheffield 27,593 1,071,499 2.58
South
adult Muslims (27% of the
17 LU Luton 25,320 251,169 10.08
North 18 WF Wakefield 24,771 390,966 6.34 population of the top 20 areas)
South 19 SL Slough 24,749 272,467 9.08
South 20 TW Twickenham 24,622 360,656 6.83
IBB Survey of consumers attitudes & understanding of Islamic Finance conducted by 2Europe in
Aug 2013. 300 consumers of which 100 where non-Muslim
66% of those surveyed felt that Sharia compliant finance is appropriate in a modern western
society, such as the UK
60% overall agreed that Sharia compliant finance is relevant to all faiths
with 57% agreement for non-Muslims surveyed
81% of IBBs customers are likely to use Sharia compliant finance again; the results being the same
for Muslim and non-Muslim customers
36% of Muslims currently use Sharia compliant finance, of which 9% use it exclusively.
A further 45% of Muslims, who dont currently use Sharia compliant finance, are likely to consider
doing so in the future.
Too large an
49M adults in the UK audience for IBB
Average non-Muslim is 7 times less likely to to market to all
purchase Islamic finance than average Muslim
(Research for IBB by 2Europe, 2013)
22M
4M
450,000,000 450,000,000
400,000,000 400,000,000
350,000,000 350,000,000
300,000,000 300,000,000
250,000,000 250,000,000
200,000,000 200,000,000
150,000,000 150,000,000
100,000,000 100,000,000
50,000,000 50,000,000
- -
Economic Reasons
Potential for large capital inflows into City of London due to the size of the
Global market and strengthen the UK as a financial centre
English commercial law is used commonly used for large contracts so UK
professional firms are doing well out of it
Combating Financial Exclusion
Enabling more access to financial services to UKs 2-3 million Muslims
Regulations
Create a regulatory framework that recognises Islamic nature of products and
affording users of those products the same consumer protection
Taxation Regime
Changes to engender a level playing field for Islamic Finance products
Finance Act 2007 The Finance Act 2008, The Finance Act 2009
introduced legislation added amendments for introduced provisions to
which provided for Stamp duty and stamp exempt land which is
Sukuk to be taxed duty reserve tax for Sukuk used for Sukuk purposes
similar to from SDLT.
Gave power to Treasury
conventional bonds.
to raise funds using The Statutory Instrument
Introduced further Sukuk No 2568 2009, extending
amendments to the the definition of financial
Introduced anti-avoidance
SDLT relief institution under the
measures on alternative
alternative finance
property finance
arrangement to include
transaction
Insurance Company
Our commitment to help London lead the way in Islamic finance across the world
David Cameron, WIEF 2013
Developing innovative products that are regulatory and Sharia compliant, market
competitive and commercially viable
www.islamic-bank.com