UK set to approve sovereign sukuk

The UK is expected to move closer to issuing Islamic bonds guaranteed by the government when the Treasury (finance ministry) concludes a consultation exercise on the issue on 21 February.
The consultation began last November to explore how the UK would structure a sukuk backed by the government.

Politicians will be updated on the latest government thinking on the issue when the budget is announced on 12 March.

A treasury spokesman said the conclusion would be in line with making the UK a global hub for Islamic finance.

A sukuk backed by the UK government would be a significant spur to the takaful (Islamic insurance) industry, which currently has only limited highly rated fixed-income securities to invest in (MEED 25:08:07).