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BLME (Bank of London and The Middle East) is the largest Islamic bank in Europe, offering competitive and tailored services in three core areas: wealth management, corporate banking and markets. BLME is an independent UK wholesale Sharia’a compliant bank, making a profit of over £3.5m in 2010. BLME is FSA approved and focuses on building sustainable partnerships based upon ethical principles.

== History ==

BLME was first incorporated in London on 7th August 2006, originally under the name House of London and The Middle East, changing to Bank of London and The Middle East in July 2007. Humphrey Percy, Founder and CEO, met with the original sponsors, Boubyon Bank, together establishing their common ambitions to build a market leading wholesale Islamic bank. BLME received authorisation from the Financial Services Authority (FSA) in July 2007 with a full set of permissions and European passporting. BLME chose to establish its headquarters in London as it is one of the biggest hubs for Islamic Finance in Europe. In 2008 BLME completed their second private placement bringing their total capital base to £250million. As an integral part of their strategy, BLME launched their Wealth Management division including a Private Bank and Asset Management offering in early 2009. Since its establishment, BLME has won numerous awards for its services, including several from Islamic Finance News Awards : Best Islamic Bank in Europe (2008), Best Islamic Bank in UK (2009 & 2010) Best Islamic Leasing Provider (2009) and Deal of the Year (2009). BLME was also awarded the WIBC Institutional Excellence Award in 2009. In 2011 BLME was awarded Best Islamic Bank in Europe by Global Finance Magazine.

== Islamic Finance == Islamic finance is a very large and fast growing industry, which is predicted to be worth $5 trillion by 2015. It provides an alternative financial system for investors looking for ethical financing.

BLME operates under Sharia’a principles: fairness, integrity and transparency. Sharia’a compliant financing avoids speculation, short selling and excessive credit creation whilst encouraging sound risk management procedures. Complying with Sharia’a also means that BLME does not invest in activities prohibited by Sharia’a or against the public interest, including arms production or trade, alcohol, pornography and gambling. By following these principles, BLME creates products and services that generate a fair and equitable profit from transparent transactions that are backed by real assets. Any investor looking to conduct business on a principled and equitable basis can share these ethical values. Under Sharia’a law, interest is usury and thus haram (forbidden). Islamic finance therefore prohibits the payment or acceptance of interest charges (riba ) for the lending and accepting of money.

There are four main types of contract used by Islamic Financial institutions in the UK:

Ijara  is a bilateral lease contract allowing the transfer of the use of an asset rather than the sale of the asset. This contract can be structured so that the ownership is transferred to the lessee at the end of the original agreement.

Mudarabah  is a partnership contract, where one party provides the funding and the other, usually a financial expert, manages the project, after which the customer and the bank share any profits.

Murabaha is a form of credit, enabling the customers to make purchases without taking out an interest bearing loan. It is a cost plus financing transaction which includes an agreed profit margin, where the payment is deferred for an agreed period of time.

Musharakah. A flexible partnership contract between two or more parties who all contribute capital towards the funding of a project or asset. Profits are pre- agreed with any losses being shared on the basis of the contributed capital.

BLME and Sharia’a Compliance
BLME ensures that its services are wholly Sharia’a compliant, using this principle to underpin all its practices. A distinctive quality of the Bank is that from the very beginning, it has dedicated a Sharia’a Supervisory Board (SSB) to review contracts and agreements. This ensures that all policies, practices and governance are in compliance with Sharia’a and Islamic jurisprudence: rooted in transparency, fairness and clarity. This Sharia’a specific regulation and governance is in addition to the conventional regulation that applies to all UK based financial institutions.

Key Areas of Expertise
=== Wealth Management ===

Private Banking
BLME provides personal Client Relationship Managers who work with client to understand their individual circumstances, financial and investment requirements. Any financing solutions are based on Sharia’a principles under the guidance of scholars who form the BLME Sharia’a Supervisory Board. By applying Western expertise to Islamic finance as well as accessing internal and external professionals, BLME claims to be able to provide a range of services and products that meets client’s risk tolerances and longer term financial ambitions.

Asset Management
BLME Asset Management combines expertise and solid market understanding to offer investors income, property and equity funds. BLME’s priority is to provide organic and sustainable growth coupled with a strong return on capital. Asset Management at BLME is conducted on the foundations of transparency and simplicity. BLME launched the first Sharia’a $ Income Fund at the start of March 2009 which has its own SSB. In 2011 BLME launched two new funds(March 2011 ) the BLME High Yield Fund (May 2011) and the Light Industrial Building Fund (LIBF ). In February 2011 BLME launched a Sterling and Euro share class for the US Dollar Income Fund.

Corporate Banking
Corporate Banking at BLME provides financial services for tangible assets, such as property, equipment leasing and trade finance. It offers expertise in a wide range of Islamic financial instruments. Clients range from family business to multinational corporations; they work in a variety of business sectors including online shopping, real estate , transport , energy , health care and technology.

Markets and Treasury
The Markets Division of BLME funds the banking division and manages liquidity. This division also incorporates BLME’s Treasury and Financial Institutions businesses, and is the main point of contact with international banks and financial institutions.

The Markets Division funds the Corporate Banking Division by sourcing Sharia’a compliant funds from financial centres and dealing with counterparties around the world. It also manages BLME’s balance sheet risks. Furthermore, it provides pricing to clients in several Islamic Money Market, Foreign Exchange and Sukuk products. The Financial Institutions team establishes and manages BLME’s relationships with banks in London and internationally.

Management
Humphrey Percy – Founder and Chief Executive Officer Humphrey Percy has over 30 years of banking experience, and he focused his career on treasury and global markets, working at J. Henry Schroder Wagg, Barclays Merchant Bank, Barclays de Zoete Wedd and West LB. With these companies he has held positions including CEO, Managing Director, General Manager, and Head of Global Financial Markets. Humphrey is experienced in building new functions and product areas: he has managed start up businesses within both BZW and West LB, and he founded his own business in 2002.

Nigel Denison – Executive Director and Head of Wealth Management Nigel joined BLME as Director and Head of Markets Division in November 2006. Prior to this he was Head of European Sales for West LB’s Global Markets Unit which included Treasury, Capital Markets and Emerging Markets. Nigel began his career at Barclays Merchant Bank, subsequently BZW where he became Head of Trading for Barclays Swaps and Options European business, based in London. He then spent some time in New York where he took over the derivatives trading operations for Barclays.

Richard Williams - Finance Director Richard joined BLME as Finance Director and Company Secretary in November 2006. He qualified as a Chartered Accountant with KPMG in 1980, and spent his early career in Investment Banking was spent with Chase Manhattan, Credit Agricole and Bankers Trust. Richard then spent 10 years at Robert Fleming & Co setting up their Global Equities Derivatives business which took him to Tokyo, before spending 3 years in Hong Kong with Jardine Fleming. Richard also has experience with start up companies and in Private Equity with Legal and General Ventures.