Tuesday, November 13, 2007

UK Treasury paves way for Islamic bonds

by George Parker, Lina Saigol and David Oakley from Financial Times (UK)

The government will step up preparations this week for the launch of sharia-compliant bonds, known as sukuk, as it seeks to turn London into the world centre of Islamic finance. Kitty Ussher, the Treasury minister, believes that the scheme will entrench London as “a global gateway to Islamic finance” and help Britain’s Muslims, who sometimes struggle to find sharia-compliant retail products such as mortgages. The bonds could be used as vehicles to allow Muslims in Britain to invest in National Savings products through banks and post offices ... British sharia-compliant bonds could act as a catalyst for big UK and western companies to launch similar securities in London, boosting the capital as a centre for Islamic finance. The competition for business is fierce, however, with the Middle East increasingly seen as an attractive location to set up operations because of its oil wealth. London’s share of Islamic funds, which invest in only sharia-compliant products, has dropped by almost a third in the past five years as more of them move to the Middle East, where they see big potential for business.

1 comment:

Anonymous said...

If we in the western world continue to allow the infiltration of Islamic Sharia laws into our banking systems, the trend will not end with that. We must no allow any more accommodation to the Ilamci world of Sharia and Jihad and we must maintain our systems and values, otherwise, we will all be wearing burkas.