London gets jump on New York in Islamic finance

The cavernous ballroom of a London hotel is buzzing with the sound of networking and deal–making between hundreds of bankers, lawyers and investors from the Middle East, Asia and Europe.

The annual Islamic Finance conference in the British capital has grown exponentially over the past decade, attracting all the key international players and underscoring fears that political rhetoric is leaving the United States sidelined in an increasingly lucrative global industry.

In a post credit–crisis world, Islamic banking is tipped to be a major growth area for international financing. It currently represents around just 2 percent to 3 percent of global financial assets, or almost $1 trillion, but it is growing at an average of 25 percent each year.