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The adoption of the doctrine of secularism in the United States of America (USA) and the United Kingdom (UK) is clear. Secularism separates human activities in the public sphere from religion. In Western countries, the development of Islamic finance, which stands on the principles of Shariah, could be impeded due to this doctrine. This is because, in Islam, religion is part and parcel of human life. Unlike the US, the UK has made certain efforts to accommodate Islamic finance needs by amending its regulatory structure. Adequate regulatory set ups for Islamic finance in both countries are very crucial, particularly in the UK, since its government aims to promote London as the hub for Islamic finance in Europe. Therefore, in view of the importance of these two giant financial jurisdictions, this study aims to provide a comparative legal analysis of the position of Shariah in Islamic financial contracts in the UK and the US. In particular, this study highlights the legal and judicial treatments made by the courts in both countries pertaining to the subject matter. This study concludes by highlighting the present position of the subject matter.

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