Author: Equi
Published on: June 30, 2026
In partnership with the All-Party Parliamentary Group (APPG) on Islamic and Ethical Finance, Equi was delighted to host the full-capacity Parliamentary Launch of its latest report, Growth with Purpose: The Untapped Potential of Islamic Finance, in Parliament on Monday 29 June 2026.
The report was launched by the Rt Hon Lucy Rigby KC MP, Chief Secretary to HM Treasury. The panel, Chaired by Naz Shah MP, Chair of the APPG, brought together Omar Shaikh, Managing Director of the Islamic Finance Council UK (UKIFC), and Equi’s Managing Director Professor Javed Khan OBE, with the report’s findings presented by Equi’s Dr Jennifer Philippa Eggert and Safa Al-Azami.
Equi was also delighted to be joined by MPs from across the aisles, including Shockat Adam MP, Ayoub Khan MP, Abtisam Mohamed MP, Yasmin Qureshi MP, Sarah Owen MP and Afzal Khan CBE MP, alongside leaders from across finance, business and community organisations. Together they explored how Islamic and Ethical finance can drive economic growth and advance financial inclusion, delivering value not only for Muslim communities but for the country as a whole.
Growth with Purpose makes the case that Islamic finance is, at its heart, ethical finance: built on the sharing of profit and risk, and the exclusion of interest and harmful industries. Drawing on a national survey of 3,000 respondents and more than 30 expert interviews, the report finds that Britain is already a global leader, with much as-yet untapped potential. London is the West’s Islamic finance capital, with UK-based Islamic banks holding 85% of Europe’s Islamic banking assets, and the UK is home to the fifth-highest number of Islamic fintech firms in the world.
With the right policy support, Islamic finance could deliver nearly £2.5bn a year for the public finances – more than the UK expects from the Australia trade deal – while widening access to pensions, student finance and home ownership, within a global industry that has grown by more than 20% in recent years.
Demand is already strong, and largely unmet. Some 64% of Muslims prefer Islamic finance over other alternatives and 86% want an Islamic banking provider, yet only around half currently hold an Islamic bank account. The appeal also reaches well beyond Muslim communities: 30% of non-Muslims say they would switch to Islamic products were they comparable to conventional ones, and British Muslims are helping to drive wider demand for ethical and green finance. The cost of inaction is significant: the report estimates that £54.4bn in pension savings could be lost over the lifetime of the current British Muslim population where halal options are not widely available.
To unlock this potential, the report sets out a series of practical recommendations: establishing a dedicated cross-government Islamic finance unit; embedding faith within the Government’s financial inclusion strategy; promoting ethical and halal pension options as standard within workplace schemes; improving public financial education on alternative finance; and levelling the playing field by removing taxes and charges that apply to Islamic structures alone.
Speaking at the launch, the Chief Secretary welcomed the report, framing the growth of Islamic and Ethical finance as a matter of both fairness and national economic opportunity, and reaffirming the Government’s commitment to a financial system that works for everyone.
Professor Javed Khan OBE, Managing Director of Equi, said:
“Islamic Finance is not a niche issue but a major economic opportunity hiding in plain sight.
At a time when the UK is searching for sustainable growth, this is about unlocking billions in investment, supporting innovation and ensuring our financial system works for everyone. With the right policy support, Britain can become the global capital of Islamic Finance, driving growth, boosting productivity and reinforcing our position as a world-leading financial centre.”
Discussions reinforced the report’s central message: Islamic and Ethical finance is a British success story with much room to grow – which, if supported by the right policy, can widen access, strengthen confidence, and contribute to a fairer and more prosperous economy for all.
Equi is grateful to the APPG on Islamic and Ethical Finance, to the Chief Secretary to HM Treasury, and to all the parliamentarians, experts and guests who joined us in Parliament for this timely and important discussion. Equi will continue to work with policymakers, regulators, industry and community partners to ensure these evidence-based recommendations translate into practical action in the months ahead.
Growth with Purpose: The Untapped Potential of Islamic Finance is out now. Read the full report here. Read the full report here.
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