Britain should not be afraid of selling off more of its major national infrastructure to foreign owners, David Cameron has said.

The prime minister dismissed concerns about letting overseas governments own big buildings, energy projects and football clubs as he spoke at an Islamic investment conference in London.

He made the case for foreign ownership a week after the government said it was happy for a stake in new nuclear power stations to be sold to a Chinese state firm.

Speaking to 1,800 delegates, he said opening up the market to overseas investors helps create wealth and promised the UK would not "pull up the drawbridge" like other countries.

"I know some people look at foreign companies investing in our businesses, financing our infrastructure or taking over our football clubs and ask – shouldn't we do something to stop it?" he said.

"Well, let me tell you, the answer is 'no'. One of Britain's unique selling points is its openness and this openness is a vital part of how we ensure our country is a great success story in the global race.

"Foreign investment creates wealth, jobs and growth. And far from weakening our industrial base, that investment actually strengthens it."

He said the government was proud Dubai-based DP World had invested in the London Gateway, one of Europe's biggest ports; Qatar in the tallest building in Europe, the Shard; Emirates in a new stadium for Arsenal; Etihad in Manchester City, Malaysia in Battersea power station and Masdar in the London Array offshore windfarm.

"We welcome the fact that Thames Water, Barclays, Sainsbury's, Harrods and the Olympic Village are all financed in part by Islamic investors," he said.

During the conference, Cameron also pledged to make London one of the world's "great capitals of Islamic finance" by unveiling a Treasury plan to create a £200m Islamic bond by early next year. The Sukuk bond will comply with Islamic law and investment principles that prohibit lenders from charging interest.

In a speech to the first meeting of the World Islamic Economic Forum to be held outside a Muslim country, he also revealed plans by the London Stock Exchange to launch the first Islamic market index.

Speaking at the conference, he said: "I don't just want London to be a great capital of Islamic finance in the western world; I want London to stand alongside Dubai as one of the great capitals of Islamic finance anywhere in the world. There are some countries which naturally look inwards, pull up the drawbridge and refuse to recognise that the way the world is changing affects their future success. But Britain will not make that mistake."

He said he never again wanted a Muslim student to be excluded from university nor Muslim entrepreneurs to be unable to get a startup loan because they were not compliant with Islamic finance.