Shariah-compliant finance is increasingly gaining traction among those seeking to align their financial choices with their values — and that’s not just with the Muslim community. 

According to Gatehouse Bank’s Islamic and Ethical Finance Report, 88% of UK Muslim consumers are open to switching to an Islamic finance provider. But more surprisingly, nearly a third of non-Muslim consumers say the same. 

For Gatehouse Bank, this reflects something more fundamental than market demand. 

“Our view is that the intrinsic links between Shariah principles and ethical finance present a real opportunity for financial institutions to broaden their reach and cater to an increasingly ethically minded, environmentally conscious market while also ensuring there are a good range of options available for the 4 million Muslims currently living in the UK,” said Charles Haresnape, Chief Executive Officer of Gatehouse Bank. 

The UK has proven to be a strong environment for the industry to grow, largely driven by legislative changes that have made Islamic finance products more accessible. 

“This has not only included legislative changes to provide equal treatment for customers seeking Islamic finance, but in 2014, the UK also became the first nation outside of the Islamic world to issue a sovereign sukuk, a type of Islamic bond,” said Haresnape. 

“This demonstrated to the wider global market that they were serious about their commitments to the sector.” 

But despite the progress, Shariah-compliant products still do not sit on an equal footing with conventional finance. 

Driving change in Shariah-compliant finance 

The UK has an early-mover advantage in this space, but other nations are moving quickly. The lack of a coordinated strategy risks squandering the ground already gained. 

In 2025, Gatehouse Bank published a report called “Striving for Growth: Fostering the UK’s Islamic Finance Sector”, which sets out four recommendations for how the government can continue supporting the industry. 

These include establishing a government-led Islamic finance taskforce to identify growth opportunities and removing barriers that disadvantage Islamic finance compared to conventional models — for example, by expanding the Bank of England’s Alternative Liquidity Facility to encourage new market entrants. 

The recommendations also highlight the need for a clear government strategy on Islamic finance and strengthening global collaboration in Islamic fintech to build on the UK’s existing strengths and drive future growth. 

For many Muslim consumers, these recommendations cannot come soon enough as they seek access to financial products that not only align with their faith but are also on par with those available to the wider population. 

“At Gatehouse Bank, we remain committed to our goal of bringing about real, tangible change and are working closely with government officials and stakeholders from across the industry to make Shariah-compliant finance work for all who are seeking alternative finance types,” said Haresnape. 

Sponsored content: In partnership with Gatehouse Bank