News — Islamic Bonds
UK to launch Islamic Bond
The UK is to become the first non-Muslim country to issue a Sukuk (a Sharia-compliant Islamic Bond). The news was announced by Prime Minister David Cameron at the 9th World Islamic Economic Forum (WIEF) held in London this week (29th to 31st October, 2013). While this week’s forum will cover a range of themes, including banking, technology, infrastructure, education and youth, it will be news of the £200m Sukuk that will grab the headlines in the non-Muslim world. Since interest is not permissible in Islam the £200 bond will offer a fixed return from tangible assets, and will avoid the payment of interest.