The concepts of Islamic Finance are different in some key respects from those of its traditional western counterpart and demand for Islamic banking services is growing in popularity in the UK, especially since experts in the subject have suggested that its underlying principles have protected many Islamic investments from the global financial crisis.

Islamic Finance is a way of providing and receiving finance in compliance with Sharia law and has many notable features such as: – No dealing in any goods, services or products prohibited under Sharia law such as gambling, pornography, alcohol or pork – A prohibition on the payment or receipt of interest when borrowing or lending. – Individuals must not hoard their wealth, squander it, nor keep it idle, but must use it judiciously – Anything that is morally or socially harmful cannot be funded or supported by Islamic finance – Muslims are required to give a percentage of their wealth to help poor sections of the Muslim community

Among the consequences of these prohibitions are that traditional borrowing is not allowed nor is the use of derivatives for hedging or trading.

As illustrated, moral purchasing and ethical investing are fundamental principles of Islamic finance, but delve deeper and the nature of the subject it is extremely complex, and for those trained and schooled in western finance it can be very different indeed. This difficulty is compounded when it is understood that the way in which the precepts of the Qur’an are interpreted and implemented differ in different parts of the Islamic world. Because of the recent surge in interest in Islamic Finance a few universities and other higher education institutions in the UK are now offering formal qualifications in the subject, in some cases working with academics and scholars from other countries, for example, the International Centre for Education in Islamic Finance (INCEIF) and offer courses such as the full-time MSc in Investment Banking and Islamic Finance which can be accompanied by appropriate professional certification.

Formal education in the subject includes extensive study of the principles of Islamic Finance, as well as intensive learning about the mechanics and practice of the subject as practiced in the Middle East and in Malaysia, which has a very highly developed market in Islamic Finance. Indeed, some courses also offer a placement in an Islamic financial institution as part of the course, where students will get to see how Islamic finance works as an integral part of the economy.

Study of the subject can either supplement existing accountancy and finance qualifications or be studied in isolation without any prior knowledge, as it is a self-contained unit. The best courses recognise that Islamic Finance has to operate alongside its conventional counterpart and, therefore, require full study of western financial concepts alongside their Islamic counterparts. One thing is for sure, well designed courses in this vibrant and rapidly developing subject in the UK will be very popular.