New research by the AlBaraka Forum for Islamic Economy, a global, independent, non-profit think tank, has found that over a third (39%) of UK business decision makers say concerns over racial prejudice are a significant barrier to adopting Islamic economy/ finance principles within their companies.

The research highlights a persistent disconnect, as a large majority of decision-makers (74%) recognise the importance of Islamic finance models and believe they can play a vital role in supporting UK business growth and economic development across international trade, investment, and financial services.

The research, carried out in October 2025, and coming ahead of a major gathering of leading Islamic economists and investors in London on 18th and 19th November 2025, also found:

85% of UK business decision-makers say it is important to consider alternative financing methods to remain globally competitive over the next five to ten years.
68% claim familiarity with Islamic economy/ finance principles – such as interest-free financing, risk and profit sharing, and ethical investment – yet 42% admit a lack of understanding of its benefits, and 40% cite the perceived complexity of Shari’ah compliance as an additional barrier.

The UK Chancellor’s impending Autumn Budget on November 26th is expected to place finance and business leaders under mounting pressure to rethink their financial strategies and explore alternative financial models.

“This research highlights a strategic blind spot in how alternative economic frameworks, like the Islamic economy, are understood and integrated. Islamic economy is not a fringe concept; it is a globally relevant, ethical model that supports inclusive, sustainable, and resilient growth,” said His Excellency Mr. Yousef Khalawi, Secretary General of AlBaraka Forum for Islamic Economy.

He added: “Many non-Muslim countries have already begun incorporating Islamic economic principles into their financial systems, recognising their value in investment, finance, and long-term commercial partnerships. As global markets face increasing pressure for diversification, equity, and enduring value creation, the Islamic economy should be viewed as a key pillar in shaping a more balanced and purpose-driven financial future.”

The AlBaraka Forum will host its 4th AlBaraka Summit in London on 18th and 19th November 2025, bringing together an international audience of economists, business leaders, and academics to discuss Islamic finance and economies.

This year’s theme, “New Horizons: Economy in Global Markets, Beyond Majority-Muslim Societies,” will explore the role of Islamic finance in diverse economic contexts.

Registration is required to attend. The full agenda for this year’s summit and registration details are available here.