David Cameron announced at the World Islamic Economic Forum in London that the UK would become the first non-Muslim country to issue sukuk, or Islamic bonds, in a £200 million issue next year.
The IFC has for the past three years been promoting sukuk as a way of financing big infrastructure projects including the new Forth crossing.
Graham Burnside, head of banking and finance at Tods Murray Solicitors and an executive board member of the IFC, welcomed the Prime Minister's move, adding: "Across the globe, sukuk issuance has grown exponentially over the last few years and this gives the UK a lead in capturing what is now a very substantial investment market. There is a real and significant demand for such bonds from the Muslim world and beyond, which can bring investment on a major scale into the UK."
The Treasury's sukuk will be structured to bring in a fixed return without charging interest, in accordance with Islamic financial principles.
Mr Burnside said: "One interesting question is whether the Scottish Government might take up the concept, given the potential solution such funding could offer."