Birmingham gets ahead in Sharia stakes

Birmingham has broken London’s monopoly on providing professional services to support Sharia finance and is well ahead of the regional pack.   So says UKTI’s Steve Cunnane (regional national trade advisor) who spoke at a Birmingham Forward event (16 September 2009).  Birmingham Forward – the voice of the city’s professional services firms -  is leading a trade delegation to the Islamic Finance Conference in Bahrain in December (6th -8th).

“Sharia finance has well and truly arrived,” said Mohammed Nazir from Nazir Associates. 

“Several law firms have won work from the Middle East, Islamic mortgages are now available from not just the Islamic Bank of Britain but also Barclays, HSBC, Lloyds TSB and West Bromwich Building Society. Deutsch Bank decided to locate its Islamic Finance unit in Birmingham last year.

“Birmingham’s reputation as a low cost centre for shariah finance is growing.   Aston University’s considering running an MSC programme and an academic chair in Islamic Business at its Business School,” said Mohammed Nazir.

“Our challenge now is to bring it all together – a central body coordinating it all which we hope to sort out either in our next seminar in October or at our next conference in March.   Those interested should contact me.”

Sharing his experience of last year’s conference, John Hughes, partner at Needham and James said UKTI really helped.  He advised prospective delegates to, “ go on your own so you must network rather than stay in a clique.  English is definitely the language of the conference.  Western women are treated with respect providing they dress appropriately.  You just need to take lots of business cards.”

Graham Nicoll, deputy chair of Birmingham Forward and regional centre head at Barclays Wealth said, “Sharia finance may initially sound complex but it’s based on good old-fashioned principles which I’d judge that a wide range of investors would put on their ticklist when considering how best to build and protect their wealth.

“It’s all about making sound investments regulated by a  formal contract (an Islamic Integrity Agreement) and where the profits are shared.  No interest-bearing loans are allowed in any Sharia-financed venture.

“I think it’s interesting that Sharia finance has been relatively unscathed by the global crisis as investors seek the rigorous screening and stringent corporate practices inherent in Sharia finance.  The market grew 22.5% in 2007.

“We’re now considering how best to set up a steering group to build a skills base and investment base.”

“Birmingham’s setting the standard,” said Mike Loftus head of Locate in Birmingham.  “The professional services firms are joining forces to present their collective talents as a city region rich with intellectual capital.”

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Notes

1. UKTI has funding available to support companies attending the conference in terms of a contribution to air fare and hotel accommodation.
2. Sharia rules are based on the teachings in the Holy Q’uran.  The rules reject: usury, interest, uncertainty, speculation, gambling, hoarding, unethical and unlawful (which includes anything to do with alcohol, pork or casino).
3. Sharia finance is available for: unsecured and secured loans, home finance, commercial property finance, free loans without interest, profit and risk-sharing partnerships, contract for purchase for resale and leasing.
 

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