See here, now the Hong Kong guys are climbing on the Islamic Finance Bandwagon. It will face fierce competition from Malaysia, one of the originators of this type of instrument
But again, Malaysia should not be complacent. For 2 reasons. the Malaysian Financial System needs to be brought up to par much more before it can compete with HK. In terms of doing business, HK is streets ahead of KL, so if you were a newcomer wanting to setup a business and raise Islamic Finance, you may indeed find it much easier to go to HK.
Second reason, the Chinese and HK government's own public financing needs are so great that they can literally create an Islamic Finance market on their own.
So London, Malaysia, Bahrain, Qatar and Dubai, be warned!