Sharia-compliant banking forbids users from earning or paying interest.
This means Muslim customers in less densely populated Islamic regions, like the UK, have historically struggled to find products which suit their financial needs.
Fintechs have cropped up to bridge this gap in recent years. These include Wahed Invest, Rizq, Kestrl, and Qardus, to name but a few.
The UK’s central bank now proposes a new deposit facility. One which is not based on interest and is backed by a return-generating fund made up of Sharia-compliant assets. It will also refrain from investment in prohibited substances or industries under Sharia law, like gambling and alcoholic drinks.
