Al Rayan Bank
By Oliver Mackman · Reviewed 2026-04-26 · FCA regulated · PRA bank
Al Rayan is the UK's largest Islamic bank and the most credible UK Sharia commercial-finance counterparty. Owned by Masraf Al Rayan (Qatar). PRA-regulated bank with FSCS deposit protection on linked accounts. Best fit for property-backed commercial finance where the structure (Murabaha or Diminishing Musharaka) is genuinely Sharia-compliant rather than relabelled.
Sharia structures offered
- · Murabaha (cost-plus sale)
- · Ijara (lease-to-own)
- · Diminishing Musharaka (declining co-ownership)
Pros
- ✓ PRA-regulated UK bank, not a broker.
- ✓ Genuine Sharia Supervisory Board oversight.
- ✓ Strong commercial property and asset-finance product set.
- ✓ Established lender; multi-decade track record.
Cons
- ✗ Slower than mainstream commercial lenders.
- ✗ Pricing rarely undercuts conventional banks once full structure costs are included.
- ✗ Minimum tickets sit higher than mainstream SME lending.
Best for
- · Sharia-compliant commercial property
- · Established Ltd companies with £250k+ asks
- · Borrowers who require board-supervised structures
Weak at
- · Sub-£250k tickets
- · Speed-prioritised cases
Sharia governance
Three-member Sharia Supervisory Committee comprising leading scholars; reports published annually.
How to apply
Apply directly via www.alrayanbank.co.uk. Al Rayan Bank works on a relationship basis for commercial finance; expect a qualified call before a written term sheet.
Editorial only. We are not an FCA-authorised adviser. Al Rayan Bank did not pay for or pre-approve this review.