Durham University and AlBaraka Forum Drive Islamic Finance Growth in the UK

London, Oct. 26, 2024 — In a defining moment for Islamic finance in the United Kingdom, Durham University’s Centre for Islamic Economics and Finance has entered into a landmark agreement with the AlBaraka Forum, one of the world’s leading think tanks in Islamic economics. The Memorandum of Understanding (MoU), signed at the 3rd AlBaraka Finance and Economic Summit at London’s JW Marriott Grosvenor House, aims to accelerate the development and understanding of Sharia-compliant finance, strengthening the UK’s position as a prominent center for ethical finance on the global stage.

The UK Islamic finance market, valued at $7.5 billion and anticipated to grow to $8.74 billion by 2029, has garnered considerable attention as global demand for sustainable, ethical investment alternatives rises. This partnership between Durham and AlBaraka will expand education and training opportunities for professionals and students alike, including through Durham’s renowned Islamic Finance Summer School, fostering a new generation of experts equipped to lead the sector forward.

“We are confident that this collaboration will strengthen our shared mission to elevate Islamic finance and deliver impactful, quality-driven programs essential for the growth of the field,” remarked His Excellency Yousef Hassan Khalawi, Secretary-General of AlBaraka Forum.

Summit Highlights: Sessions Reflect Islamic Finance’s Expanding Global Relevance

Opening day discussions underscored the ethical dimensions of Islamic finance, drawing on Islamic economics’ potential to address global financial and social challenges. Key sessions highlighted how Islamic financial models can promote sustainable, responsible practices while providing innovative solutions to contemporary economic issues.

1. Islamic Economics and Collective Responsibility — Moderated by Faraz Khan, MBE, CEO of SpectrEco, this panel explored Islamic finance as an ethical alternative to conventional capitalism, with Prof. Paolo Pietro Biancone, Dr. Ziyaad Mahomed, and Omar Shaikh examining how it fosters social responsibility and sustainability.

2. A Visionary Outlook on Islamic Economics — Led by Nader El Nakib from UNHCR, this session discussed Islamic finance’s capacity to strengthen communities and counterbalance the volatility of conventional capitalist structures. Panellists included prominent voices from Oxford University, HSBC, and Durham University, who detailed how Islamic finance could fortify economic resilience in uncertain times.

3. Pathways to Prosperity — A panel led by DLA Piper’s Sohail Ali addressed how Islamic economic frameworks can empower developing communities. Dr. Muhammad Kabir Muhammad, Vladimir Malenko, and Rafi-uddin Shikoh highlighted the transformative potential of Islamic principles in generating community-focused economic growth.

4. Beyond Profit — Chaired by Dr. Abubaker Gaber Abubaker, this session examined how Islamic finance can balance financial returns with social and environmental impacts, offering a model for sustainable business practices. Panelists included senior leaders from Arab Open University and Al Baraka Bank Pakistan, advocating for an Islamic finance model that goes beyond profit maximization.

5. Economic and Community-Led Development through Islamic Non-Profit Models — Chaired by Dr. Aqsa Aziz from Coventry University, this discussion examined Islamic charity models such as Waqf and Qard Hassan, with leaders from Islamic Relief Worldwide underscoring the role of nonprofit finance in promoting equitable growth.

Looking Ahead: Day Two to Address Liquidity and Academic Innovation

The summit’s second day will feature a specialized workshop on liquidity management, hosted by the International Islamic Liquidity Management Corporation (IILM). H.E. Mohamad Safri Shahul Hamid, CEO of IILM, will lead discussions on Sukuk as high-quality liquid assets, providing insights into managing liquidity in Islamic finance markets. Additionally, presentations by PhD scholars from British universities will cover emerging research in Islamic banking, socio-economic sustainability, and commercial law, spotlighting academic contributions to this evolving field.

A Vision to Transform Finance for a Global Audience

The AlBaraka Summit, an initiative of the AlBaraka Forum founded by the late Sheikh Saleh Abdullah Kamel, exemplifies the Forum’s legacy of fostering Islamic economic thought. The Forum’s mission—to align Islamic finance with global financial markets while preserving its ethical roots—has shaped the summit into a vital platform for advancing Islamic finance. This commitment was highlighted by high-profile keynote speakers, including Aalia Jafar, Director of International Relations at the Islamic Chamber of Commerce, who called the summit a key event for connecting international leaders, businesses, and thinkers to accelerate access to finance for growth.

Her Highness Princess Sheikha Hend Faisal Al Qassemi echoed this sentiment, expressing pride in the progress of Islamic finance worldwide. “We live in a global economy,” she stated. “Everyone here is dedicated to doing the right thing for our future, ensuring that ethical finance and sustainability remain at the forefront of global conversations.”

Durham University’s Centre for Islamic Economics and Finance, an academic leader in the field for nearly 30 years, has built a reputation for both rigorous research and meaningful industry connections. It aims to cultivate forward-thinking leaders and position them to impact the rapidly evolving landscape of Islamic finance worldwide. With a shared dedication to fostering educational excellence, AlBaraka Forum and Durham University’s collaboration marks a critical step in advancing Islamic finance as a compelling, ethical alternative in global markets.

An Ethical Financial Future on the Horizon

As the summit theme, “Global Prospects for Islamic Economics: A Path to a Sustainable, Ethical, and Innovative Global Economy,” suggests, Islamic finance is increasingly viewed as a cornerstone for creating sustainable economic models. This partnership, rooted in ethical and community-centered principles, reflects the UK’s steadfast commitment to expanding Islamic finance, potentially redefining financial practices for a globalized, interconnected economy.

Through the combined expertise of AlBaraka Forum and Durham University, this partnership signals a transformative era for Islamic finance, promising to inspire a new generation of leaders who will drive the sector forward in a world that increasingly values both profit and principle.