But Michael Ainley, Head of Wholesale Banks and Investment Firms at the UK's Financial Services Authority, which is responsible for supervising 350 foreign banks in London, said it is starting to catch on in Britain and other European countries.
"So far we have issued three licences for Islamic banks and very soon the first Islamic insurance company will be open in the UK," said Ainley.
He added that the basic legal framework for these banks has been set up, yet the major concern is how far the scholars would get involved with the banking process.
"I understand that scholars would have to give their advice on projects the bank wishes to finance, but at the same time we don't want banks to be run by scholars, banks should be run by bankers," said Ainley.
More news from DIFCweek:
UAE governor reveals secret to sustain growth
UAE may drop dollar peg
Islamic bankers training to improve Shariah efficiency
Islamic banking in need of guidelines
UAE investment shifts towards the East
Browse
related articles
Islamic banking still catching on
- United Arab Emirates: Sunday, November 18 - 2007 at 12:16
Islamic banking still remains "opaque" in the international market, despite the sector's steady growth of 5 to 10 per cent per annum, reaching more than $500bn today. Speaking during the second day of the Dubai International Financial Centre (DIFCweek) conference, Arul Kandasamy, Head of the Islamic Financing Solutions at Barclays said: "Islamic banking is still not understood or even rated by international companies.'
Related stories
Also consider reading:
Digg
Facebook
LinkedIn
Twitter
Browse
related articles
Today's most read articles:
- » Moody's: UAE banks with largest exposures to Dubai World remain on review
- » Abu Dhabi to 'pick and choose' Dubai support
- » Samsung halts Dubai bridge work amidst Dubai debt crisis
- » Dubai World announcement serves as wake-up call to world markets
- » Fitch downgrades Dubai Bank, Tamweel and TAIB Bank on Dubai World restructuring proposal
Amena Bakr, Senior ReporterSunday, November 18 - 2007 at 12:16 UAE local time (GMT+4)
Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of AME Info FZ LLC / Emap Limited.
This article was updated on Mon Nov 19 2007.
Disclaimer:
Articles in this section are primarily provided directly by the companies appearing or PR agencies which are solely responsible for the content. The companies concerned may use the above content on their respective web sites provided they link back to http://www.ameinfo.com
Any opinions, advice, statements, offers or other information expressed in this section of the AMEinfo.com Web site are those of the authors and do not necessarily reflect the views of AME Info FZ LLC / Emap Limited. AME Info FZ LLC / Emap Limited is not responsible or liable for the content, accuracy or reliability of any material, advice, opinion or statement in this section of the AMEinfo.com Web site.
For details about submitting your stories, please read the guide - all content published is subject to our terms and conditions
It looks like you are using a Mac - check out our 
Web Feeds