Bank of London and The Middle East, the London-based bank which offers Shariah-compliant services, has received a licence from the Central Bank of Bahrain to open up an office in the Kingdom. The new office is part of the bank’s strategy to “build a bridge” between the UK and the GCC.

“The Islamic finance market is currently estimated at $1 trillion and is expected to grow to a value of more than $2 trillion by the year 2015. Shariah finance is now increasingly perceived as a viable alternative to conventional banking and is attracting a rising number of international investors,” the firm said in a statement.

In light of the high growth of this market, the bank says it views Bahrain as an ideal location for a new office.

“Bahrain provides BLME with a base for its operations in the Gulf and forms an integral part of BLME's strategy to expand across the region. This expansion will help to enhance our market intelligence as well as provide our existing and potential client base with valuable advice and investment opportunities within the GCC and the UK,” said the firm’s chief executive Humphrey Percy.

Last October the bank launched a Shariah-compliant internet-based currency trading platform, aiming to provide clients with direct access to multiple currencies for making overseas transactions.