LONDON - The world's first qualification covering all aspects of Islamic finance was launched here on Tuesday in a joint British-Lebanese initiative.

The Islamic Finance Qualification (IFQ) was developed by British industry body the Securities and Investment Institute (SII) and Lebanese business school Ecole Superieure des Affaires, with support from Lebanon's central bank and the British government.

The qualification -- aimed at cementing Britain's position at the forefront of the rapidly-expanding global Islamic finance sector -- was launched in central London in the presence of British economic secretary Ed Balls and Lebanese Central Bank governor Riad Salame.

The IFQ covers both technical and religious aspects of products that are compliant with Islamic principles.

Islamic or Sharia law prohibits the earning and payment of interest and forbids investment in businesses linked to the alcoholic drinks and gambling sectors.

"Setting standards for practitioners is a vital part of any professional body's remit," said Ruth Martin, managing director of SII.

"SII has been delighted to combine its expertise in both examinations development and professional standards to partner with ESA in the Middle East in this innovative new qualification aimed at helping practitioners grasp the fundamentals of Islamic finance and banking."

Staff working in the sector will be able to sit computer-based exams in London and Beirut from November 2006.

The qualification will be rolled out worldwide, via computer-based training, from March 2007.

Britain's estimated two million Muslims are catered for by a small number of banks -- notably Lloyds TSB -- who are providing financial products which comply with Islamic or Shariah law.

Finance minister Gordon Brown believes that Britain can become a key gateway to Islamic finance and trade, noting recently that London has more banks supplying services under Islamic principles than any other Western financial centre.

The number of Islamic retail banks and investment funds number in their hundreds, and Western financial institutions are increasingly offering Islamic products, including Citigroup, Deutsche Bank, HSBC and UBS.

Lloyds TSB, the fifth-biggest retail bank in Britain, has rolled out a variety of Islamic services, ranging from current accounts to home loans, all of which are compliant with Sharia law.

Lloyds TSB welcomed Tuesday's launch of a qualification tailored for the sector.

"London is rapidly gaining ground as a centre for Islamic finance," said Paul Sherrin, head of Islamic Financial Services at Lloyds TSB.

"Recent months have seen the number of Islamic financial products rise dramatically as banks such as Lloyds TSB have entered the frame.

"And this groundbreaking qualification is an important milestone in developing this market."

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