The Treasury has just sold £200 million worth of Islamic government bonds, known as "sukuk", in a bid to make Britain a global hub for Islamic finance, with it now the first country outside the Islamic world to issue bonds.
"I want London to stand alongside Dubai as one of the great capitals of Islamic finance anywhere in the world," he added.
Islamic finance is open to everyone, not just Muslims. The Islamic Bank of Britain enjoyed a 55% increase in applications for its savings accounts by non-Muslims in recent years.
No idea what this is all about though? HuffPost UK explains the six key things you need to know about Islamic finance.
Payday lenders, like Wonga, which rely on interest repayments for their profit, would not be allowed under Islamic law - which bans the taking and receiving of interest.
Islamic bonds are structured so investors get a fixed return, like rental income, from an asset or service.
Islamic finance reached the UK in the 1980s
with the first commodity, Murabaha transactions, which has the seller add the cost he has incurred to a commodity in a mark-up which is known to the buyer. The first Islamic bank launched in the UK in 1982, Al Barakara International.
You can't invest in gambling, pork, pornography, alcohol and drugs.
London has the largest legal services market in Europe
, and so over 25 firms in the capital are supplying legal services for Islamic finance in the global and domestic market.
You have it to thank for funding whole or in part the Shard, Chelsea Barracks, Harrods and the Olympic Village.
Islamic investments are expected to grow to $1.3 trillion this year, with the market having soared by 150% in the past eight years. Britain's Muslim population have a combined spending power of £20 billion as well.