The feasibility of establishing Islamic banks in the UK: the case of Nottingham

Abstract

The paper investigates the feasibility of establishing Islamic banks in the UK. Based on the responses obtained from Muslim and non-Muslim participants in Nottingham City, we found strong evidence of successful establishments of Islamic banks in the UK. We found that only 45% of respondents were aware of the existence of an Islamic banking system in the UK. This suggests that Islamic banks need to focus more on marketing and promotion of Islamic banking services in order to increase awareness among potential customers. Most of the respondents perceived non-interest-bearing banking services and the profit and loss sharing concept of Islamic banking as an attractive alternative to the conventional banking system. However, one of the most difficult challenges identified by the respondents was the name of the Islamic banks. Respondents indicated that Islamic products and services could be more attractive if they were not labelled Islamic.