Cameron to launch Islamic bonds on stock market to attract Muslim investors.

Cameron to launch Islamic bonds on stock market to attract Muslim investors.(DM).

Plans for a ground-breaking new Islamic index on the London Stock Exchange are being announced by David Cameron in a drive to establish the City as one of the world's leading centres of Islamic finance.

Addressing the World Islamic Economic Forum (WIEF) meeting in London, the Prime Minister will say that the UK also intends to become the first country outside the Islamic world to issue its own Islamic bonds, known as sukuk.

The announcements reflect the Government's determination to tap into the fast-growing global market in Islamic investments, which have risen by 150 per cent since 2006 and are expected to be worth £1.3 trillion next year.

'Already London is the biggest centre for Islamic finance outside the Islamic world. And today our ambition is to go further still,' Mr Cameron is expected to say.

'Because I don't just want London to be a great capital of Islamic finance in the Western world, I want London to stand alongside Dubai as one of the great capitals of Islamic finance anywhere in the world.

'There are some countries which naturally look inwards, pull up the drawbridge and refuse to recognise that the way the world is changing affects their future success. But Britain will not make that mistake.' Read the full story here.