Al Rayan Bank
By Adam Parker · Reviewed 2026-06-29 · 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.
Founder & Managing Director, Muswell Rose, FundBiz
Adam is the founder and managing director of Muswell Rose and a founder of Best Business Loans Ltd, the company behind FundBiz. His background runs through commercial finance, mortgages and fintech, including as managing director of an invoice finance business. He oversees FundBiz's specialty finance comparison and the logic behind how businesses are matched to lenders.
Last reviewed: 29 June 2026
Sharia structures offered
- · Murabaha (cost-plus sale)
- · Ijara (lease-to-own)
- · Diminishing Musharaka (declining co-ownership)
Pros
- ✓ PRA-regulated UK bank, not a broker.
- ✓ Operates a Sharia Supervisory Committee that oversees structures.
- ✓ 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
Al Rayan states it operates a Sharia Supervisory Committee of scholars that reviews its structures, and publishes its findings. Confirm the current committee and published reports with the bank directly.
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.
Not sure this is the right fit?
Tell us ticket size, the asset or use case, trading history and sector. We match you against the right Sharia-compliant route and the wider FundBiz specialty panel where a conventional structure fits better. Limited companies, LLPs and partnerships of 4+ only.
Check eligibility →Reviewed by Oliver Mackman, Director, Best Business Loans Ltd. Editorial only. We are not an FCA-authorised adviser, and Al Rayan Bank did not pay for or pre-approve this review. See our methodology. Last reviewed: 2026-06-29.