The Bank of London and the Middle East, a wholesale Shariah-compliant bank, has launched a premier deposit account , the first online Shariah-compliant PDA in the UK with a minimum investment of £50,000 (about $75,000).

The account pays profit on maturity of the original agreement or on the anniversary of the investment, whichever comes first. It is covered by the UK authorities’ £50,000 deposit guarantee scheme. 

Humphrey Percy, chief executive of BLME, said: “The launch of the PDA highlights London's leading role in the development of Shariah-compliant products in Europe.

“Since its establishment in 2007, BLME has witnessed a growing demand among medium to high net worth individuals for a banking option that incorporates the transparent and ethical principles inherent in Islamic finance with competitive returns. Shariah financial products typically must deal with the traditional Islamic prohibition on charging interest, as money is not regarded as an asset in its own right.

“With the financial climate improving, individuals are looking to diversify their investments that were previously solely held by UK high street banks.”