Shariah-compliant banking

Islamic finance derives its principles from the Shariah, which is based on the Koran and the Sunnah (the teachings of the Prophet Mohamed (PBUH)).  The key defining characteristics in the application of Shariah to financing structures are that transactions should be based on tangible (or intangible) assets, but should not bear interest (Riba).  On the other hand, the generation of profit is very much encouraged, and many commentators also identify risk sharing as being one of the quintessential features of any Islamic financing.  Shariah principles also forbid uncertainty (Gharar) as well as activities in certain prohibited areas (including anything to do with alcohol or pork, armaments or gambling).

Islamic finance is one of the most dynamic areas of financial services today. Petro-dollars from the Gulf together with the vibrant economies of South-East Asia have combined to bring it to the forefront, offering an important source of funding diversity and liquidity for companies and governments.

Consequently, Islamic finance generally, and the capital markets specifically, are growing at an exponential rate. As a world leading financial centre, London is ideally placed to structure Shariah-compliant financing solutions to connect issuers and investors, both in and between the Gulf region and the rest of the world.

Gatehouse Bank intends to play a leading part in this process, setting new standards within an FSA regulated environment of Shariah-compliant investment banking from the heart of the City.