UK BUSINESS LEADERS CALLING FOR ACCESS TO ALTERNATIVE FINANCE MODELS AMID THE FUNDING SQUEEZE
New research has revealed a growing frustration among UK business leaders who can’t get access to ethical and faith-aligned financing. There is a clear shift in appetite towards alternative models that better serve underrepresented SMEs, faith-led enterprises and start-ups.
Over a third (34%) of UK business leaders say ethical finance is still not reaching those who need it most, with growing calls for support amid ongoing economic pressures.
New research by the AlBaraka Forum for Islamic Economy, a global, independent, non-profit think tank, has found that two-thirds (66%) of UK business leaders also say they are actively considering alternative finance models, including revenue-sharing, impact investment and Shariah-compliant structures, over the next two to three years.
The results also show strong support for a more globally competitive UK finance strategy, with over half (57%) of business leaders believing the UK should position itself as a world leader in ethical and Islamic finance, to attract values-based capital and unlock new investment flows.
However, significant barriers to adopting these alternative models remain: a lack of education (54%) and unclear government policy (53%) were identified as the top barriers to adoption. A further 42% say they need more evidence of return on investment (ROI) before fully committing.
Commenting on the research, His Excellency Mr. Yousef Khalawi, Secretary General of AlBaraka Forum for Islamic Economy, said, “These findings reflect what we have heard consistently from business leaders in non-muslim majority countries. Which is there is a growing demand for financial models that are not only ethical in principle, but inclusive and effective in practice. Ethical or values-based finance models are uniquely positioned to support this shift, especially for SMEs and underserved communities. The UK has the infrastructure, the credibility and the multicultural market needed to lead the world in this space. However, clarity in policy and investment in education are now critical to unlocking that potential.”
The research was carried out in December 2025 just after the 4th AlBaraka Summit in London where an international audience of economists, business leaders and academics gathered to discuss Islamic finance and economics.
This year’s theme of the annual sumit was: “New Horizons: Economy in Global Markets, Beyond Majority-Muslim Societies,” will explore the role of Islamic finance in diverse economic contexts.
