British Government Policy on Islamic Finance

Despite having an established church, the UK generally maintains separation between church and state which leads to the following policy requirements:

a) The same law applies to all citizens, irrespective of their religion.

b) The state is not an arbiter on religious issues. For example, it has no interest in determining conflicting claims about what is Shariah compliant.

c) The legal enforceability of a contract should not depend on whether it is Shariah compliant.

d) Individuals and companies should be entitled to organise any form of business enterprises, provided they do not conflict with the law.

Against this background, the UK Government has supported the development of Islamic finance in the UK for two principal reasons:

1....