Source: Halal Times

Kawaguchiko, Japan – For Britain’s Muslim community, finding vehicle financing that aligns with religious principles has historically presented significant challenges. Traditional auto loans typically involve interest (riba), which contradicts Islamic financial principles. However, recent developments signal a transformation in this landscape, with Halal car financing options becoming increasingly accessible.

Major Funding Secured for Market Expansion

Ayan Capital has announced a substantial £25 million in Sharia-compliant financing from Partners for Growth (PFG), a global private credit firm with a twenty-year history of supporting high-growth fintech ventures. This investment highlights the growing recognition of Islamic financial products’ viability within the UK market.

The timing aligns with demographic trends showing potential growth of the UK’s Muslim population to approximately 10 million by mid-century. Despite this projected growth, Islamic banking currently represents just 0.1% of total UK banking assets, revealing a significant gap between demand and available Sharia-compliant financial services.

Market Growth Accelerating

The sector is experiencing remarkable momentum. Islamic bank assets in the UK grew by 26% in 2023, reaching $8.2 billion. Fitch Ratings forecasts this figure could nearly double to $15 billion in the medium term, demonstrating the increasing acceptance of Islamic finance within Britain’s financial ecosystem.

Ayan Capital focuses specifically on providing Halal car financing for private hire drivers using platforms like Uber and Bolt, as well as business users seeking Sharia-compliant options for low-emission vehicles.

Distinctive Approach to Vehicle Financing

What distinguishes Ayan Capital in the market?

• Technology-driven process: The company employs digital solutions to streamline financing applications and approvals
• Direct financing model: By eliminating intermediary commissions, they offer more transparent and potentially competitive pricing
• Flexible vehicle sourcing: Unlike traditional financiers, customers can purchase vehicles from any source, offering greater flexibility within the £21.7 billion used car finance industry
• Ethical finance focus: Their offerings directly address the values-based financial needs of the Muslim community

Strategic Growth Plans

The £25 million funding, structured according to the Islamic finance principle of Ijara wa Iqtina (lease-to-own agreement), will support several strategic initiatives:

1. Market expansion: Increasing accessibility to Halal car finance throughout the UK
2. Technology enhancement: Further development of their underwriting capabilities, which have maintained an impressive 0% non-performing loan rate despite rapid growth (2.2x financing issuance last quarter)

Ayan Capital has set ambitious targets, aiming to facilitate £25 million in financing this year and £100 million by 2026. The company has already expanded beyond vehicle financing with the launch of Ayan Pay, a 0% interest, 12-month installment plan for household needs including home repairs, renovations, and furniture purchases.

Building on Proven Success

CEO Abdullo Kurbanov previously co-founded Alif Bank in Central Asia, which grew to serve over four million customers with digital transactions increasing thirtyfold in just three and a half years. This experience provides a strong foundation for Ayan Capital’s UK ambitions, which include eventually applying for a UK banking license.

Broader Impact on Financial Inclusion

The growth of Halal car finance contributes to greater financial inclusion by providing ethical alternatives for individuals previously excluded from traditional financial products due to religious beliefs. Islamic finance principles—including risk-sharing, ethical investment, and prohibition on speculation—offer valuable perspectives for promoting stability and responsible financial practices.

Market Trends Driving Growth

Several factors are shaping the future of Halal car finance in the UK:

• Demographic shifts: The growing Muslim population creates increasing demand for Sharia-compliant products
• Technological innovation: Fintech advancements are making Islamic finance more accessible and efficient
• Evolving regulations: Government policies supporting Islamic finance could accelerate sector growth
• Increased awareness: Growing understanding of Islamic finance principles among both Muslims and non-Muslims
• Competitive innovation: New market entrants developing innovative Sharia-compliant products

The Road Ahead

Ayan Capital’s funding represents a significant milestone for Halal car finance in the UK. As the Muslim population grows and the regulatory environment evolves, this sector is positioned for continued expansion, offering greater choice and financial inclusion for faith-conscious consumers.

With its technology-driven approach and ambitious growth targets, Ayan Capital is helping to bring Halal car finance into the mainstream, creating a more diverse and inclusive financial landscape for all UK citizens.

Original Articles:

halaltimes.com. (n.d.). Ayan Capital Gains £25m to Grow Halal Car Finance Across UK. Retrieved April 4, 2025, from https://www.halaltimes.com/ayan-capital-gains-25m-to-grow-halal-car-finance-across-uk/