“The new regulation will make Britain not only a leader in Europe, especially with respect to sukuk, but a world leader in the field of Islamic finance,” Dr Dar told WealthBriefing in a recent interview.

He said it was a “pleasant surprise” that the treasury introduced these measures into parliament before the general election. The new regulations are expected to provide clarity on the regulatory treatment of corporate sukuk, reducing the legal costs and removing obstacles to their issuance, the government has said.

Sukuk have a similar economic function to bonds, but comply with Islamic principles. They can be bought by everyone and are not restricted to the Muslim community.

While estimates about the value of the Islamic finance industry vary, Dr Dar believes it to be worth about $1 trillion.

He said that it would be great to see measures similar to those in the UK being introduced at a European level.

There has been a slowdown in the Islamic finance market since the credit crisis, Dr Dar said, adding however that this downturn is “consistent with the slowdown of the conventional markets.”

The Islamic finance market was affected about six to eight months after the downturn hit the conventional markets, he said. Nevertheless, it “should be slightly ahead of the conventional industry of similar size in the recovery of the market.”

Together with Malaysia, the UK now has a leading position in the field of Islamic finance, Dr Dar told this publication. He is also convinced that continued support from the UK government towards the Islamic finance market can be expected whatever the outcome of the forthcoming general election 

Dr Dar is an Islamic banking expert and Shariah technician. He has been trained in Islamic and conventional economics. As chief executive of BMB Islamic UK and member of its own and other Shariah supervisory boards, he is actively involved in enhancing the Shariah authenticity of Islamic financial products.