Hi all,

Does anyone have any info about this bank's future potential. They are likely to expand to at least 10 locations in the UK and then there is the possiblity of passporting their approved status here in the UK to other European countries..

UK Market

The core market is the 1.8 million-strong Muslim population of Britain, of which market research suggests about three quarters are devout and potential customers for the bank. There are also some 600,000 Muslims who visit the UK during the summer months to escape the Middle East heat. They will be part of the target market, Mr Hanlon said. The banks seed capital of 14 million, required for the banking licence is provided by investors from the Gulf, including members of the royal family in Qatar, as well as British Muslims. A share offering later this year will raise the equity to 50 million and Mr Hanlon hopes that British bank customers and others in the Gulf will be among those to buy shares.

European Market

Western banking institutions have long considered Islamic finance to be a niche market exclusive to devout Muslims, but the sheer scale of the market and the depth of liquidity of Islamic insitutions in the Gulf is encouraging wider interest. Last month the German state of Saxony-Anhalt raised 100 million (66 million) by issuing the first European Sukuk, an Islamic bond.

USP

Unlike some high street banks, such as HSBC, which offer Sharia-compliant mortgages, Islamic Bank of Britain will be fully compliant with the Koranic stricture banning the payment or receipt of interest. In addition, the bank will not invest in business dealing with tobacco, alcohol or pornography, an aspect that Mr Hanlon hopes may attract a wider market than the Muslim community.

Looks good to me though has this been attempted in the past?

Any feedback, comments welcomed!!!

HSBC is also talking about Islamic products.
The main holders are Qatar Int Islamic Bank, DCD London & Mutual PLC, and Qatar Islamic Insurance Company.