Noor, which is partly owned by the government of Dubai and in part by the emirate’s ruler and has only been in operation for just over one month, but plans to spend between £250 million and £1.5 billion on individual acquisitions in Europe, Asia and North Africa.

The banks chief executive Hussain al-Qemzi said: “We aim to be the largest Islamic bank within fi ve years. Acquisitions will be the main way because there is no time to grow organically.” Britain has established itself as the leading Islamic fi nance centre outside the Islamic world and, with around 2 million Muslims, is almost certain to be on the banks list. The UK Government has already altered the law so house buyers using a shariah compliant mortgage pay the same stamp duty as those using a traditional home loan. It is also planning to offer a state-backed sukuk, or Islamic bond.

Britain has three wholly independent Islamic banks that are registered by the Financial Services Authority; the Bank of London and the Middle East, the European Islamic Investment Bank and the Islamic Bank of Britain, although other high street lenders and investment banks sell Shariahcompliant products.

Demand for investments and fi nancial services that comply with Islamic law - which includes a ban on the receipt of interest - is growing among the world’s 1.3 billion Muslims with last years estimated market to be worth around £600 billion, and growing.

Noor Islamic Bank plans to make its fi rst move in the before the end of 2008.