This lesson examines the position and development of Islamic banking in key global markets, focusing on Europe and North America.

7.1 Islamic Banking in Europe
The UK is a leading country in the Islamic finance industry among European nations and has significant experience in Islamic banking and capital markets . The UK government has supported the sector by implementing regulatory frameworks and tax reforms to accommodate Shariah-compliant products. In 2004, the Islamic Bank of Britain (now Al Rayan Bank) became the first Islamic bank to be established in the country . Gatehouse Bank is a notable example of a Shariah-compliant challenger bank in the UK, offering green home finance, savings accounts, and property investment .

• Germany: Interest in Islamic finance began in the 2000s, and KT Bank was established in 2015 to provide compliant banking services .

• France & Italy: Both have shown growing interest in Islamic finance, with efforts to develop supportive regulatory environments and offer trade finance and investment products .

7.2 Islamic Banking in the United States
Islamic finance in the US has experienced steady growth since the 1980s. Early pioneers like LARIBA and University Islamic Financial helped establish the market by providing home financing and investment products . The regulatory environment in the US has gradually adapted to accommodate Shariah-compliant financial practices . The US capital markets are considered to have great potential for Islamic finance growth .

7.3 Global Leaders
Malaysia, which has been working on Islamic finance since the 1960s, remains a key actor in the development of the industry globally, in both banking and capital markets .