By Nicholas Watt

David Cameron will on Tuesday pledge to make London one of the world’s “great capitals of Islamic finance” when he unveils Treasury plans to create a £200m Islamic bond by early next year.

In a speech to the first meeting of the World Islamic Economic Forum to be held outside a Muslim country, the prime minister will also unveil plans by the London Stock Exchange to launch the first Islamic Market Index.

Cameron will tell more than 1,800 political and business leaders, who have travelled to London for the ninth meeting of the forum, that Britain aims to secure a slice of global Islamic investments, due to reach £1.3tn by next year. Britain hopes that the index will help identify Islamic finance opportunities. [Read more…]