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The current financial turbulence will lead to an increase in Islamic finance, according to BDO Stoy Hayward.

The accountancy and financial advisory firm said that Islamic banks are one of the few sectors of the industry which still has significant sums of money available to finance both individuals and corporates.

Dan Taylor, head of banking for BDO Stoy Hayward, said: "As the risk profile of Islamic banks is generally lower than conventional Western banks, this presents a more solid option for both retail and institutional investors and suggests that dealing with Islamic financial institutions will grow dramatically as people switch to more secure products in this environment.”

Mr Taylor believes Islamic banks have other advantages. He said: "Further growth of Islamic banking in the UK will also be attributed to their more conservative approach to financing, as the risks are shared with the investor, much like the private equity model. In addition, it is more difficult for Islamic financial institutions to use leverage; therefore their risk profile is naturally lower.

"Currently 20 major global banks operating in the UK have set up units to provide Islamic financial services. They have been joined by five stand alone Islamic banks. In comparison Switzerland has five Islamic financial institutions and France and Luxembourg each have four."

"In light of the market turmoil, we could expect the number of stand alone Islamic financial institutions present in the UK to double over the next three years, further reaffirming London’s position as the pre-eminent centre of choice for the provision of Islamic finance."