The Islamic Bank of Britain (IBB), the UK's only wholly Sharia compliant retail bank, has announced the launch of the UK's first Islamic ISA. The account offers UK consumers an alternative and ethical tax-free way to save.
Islamic and ethical finance overlap on many fronts. Sharia principles mean that the bank cannot invest in certain industries, such as tobacco, gambling or pornography, and the payment of interest is banned. As a result, the ISA rate is an expected profit rate because the bank invests the depositors' funds into Sharia and ethical trading activities.
According to an industry expert, the Islamic finance sector will see rapid growth this year and be worth $2 trillion (£1.2 trillion) by the end of 2014. London is also set to compete with Dubai to become the global hub for Islamic banking and finance.