Al Rayan Bank

Al Rayan Bank PLC is a commercial bank in the United Kingdom, established in 2004 as the Islamic Bank of Britain and later renamed in 2014 after its acquisition by Masraf Al Rayan. It is the oldest and largest Sharia-compliant bank in the UK, founded by a group of investors from the Middle East. In December 2022, Al Rayan Bank was acquired by Masreya-backed UK (MBUK), a subsidiary of Egypt's Masreya.

The bank offers a range of personal and business banking services that adhere to Islamic finance principles, which prohibit the charging or payment of interest. Instead, the bank operates on principles of ethical and social responsibility, using customer deposits to fund Sharia-compliant assets like property and metals. For personal customers, services include savings accounts, which generate profit rather than interest, and home financing products (Islamic mortgages) based on co-ownership or lease-to-own models. For businesses, it provides property finance and various savings accounts. Al Rayan Bank serves a diverse client base across the UK, including individuals, small and medium-sized enterprises (SMEs), and larger commercial clients seeking ethical and Islamic financial solutions.

The institution's business model is centered on asset and liability management in line with Islamic law, where profits are shared with savers. This approach ensures that investments avoid industries considered unethical, such as alcohol, gambling, and tobacco. A significant milestone was becoming the first wholly Sharia-compliant bank in a non-Muslim Western country to receive a retail banking license. The bank is authorized by the Prudential Regulation Authority (PRA) and regulated by the Financial Conduct Authority (FCA) and the PRA, with customer deposits protected by the Financial Services Compensation Scheme (FSCS).

Keywords: Islamic banking, Sharia-compliant finance, ethical banking, home finance, Islamic mortgage, commercial property finance, retail banking, private banking, savings accounts, asset management