Islamic Finance: A promising sub-sector for the UK

Danesh Mahadeva | 11th June 2026 | Economics and Finance
Photo: Professional Images/@ProfImages
Photo: Professional Images/@ProfImages

Danesh Mahadeva introduces a socially responsible approach to investment and wealth management.

Shariah-compliant finance, otherwise known as Islamic finance, may still only make up a niche section of the wider economic landscape, but it is an area that is growing swiftly and its potential to contribute to the UK’s financial strength shouldn’t be overlooked. In 2025, the approximate value of the UK’s Islamic finance market was £5.6 billion, with this expected to grow to nearly £5.9 billion in 2026. As the modern Islamic finance industry only originated in the 1960s and 70s, this makes it one of the fastest growing areas of financial services globally and a promising sub-sector that must be nurtured in order to achieve its full potential. What is Islamic finance? Despite its fast-paced growth and rising popularity, there remains a lack of understanding about what Islamic finance is, how it differs from conventional finance and who can access it. Research from Gatehouse Bank’s latest Islamic and Ethical Finance Report found that three in ten (30%) people believed that Islamic finan...

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