What Brexit means for Islamic Finance

Now that the markets have had a few days to react to the news of the UK referendum, perhaps we can take stock of what the future might hold for Islamic finance in Europe. It’s still way too early to call, of course, but I would certainly disagree with some commentators who are stating that Brexit is a blow for Islamic finance in the UK (or Europe for that matter). After all, leaving the EU may mean that authorised financial services firms in the UK may no longer be able to ‘passport’ business to the EU but how many of the UK’s Islamic banks are active in Europe anyway?

And as for the UK’s domestic ambitions for Islamic finance, progress will surely mirror that of the conventional banking industry: if it survives and thrives post-Brexit, then so will Islamic finance. The Britis...