Sunday, March 16, 2008

UK paves way for sukuk issue

The latest budget by the UK government, announced on 12 March, includes changes to the tax regime that lay the groundwork for the issue of a sovereign-backed sukuk in the next 12 months, according to a government adviser.
Junald Bhatti, director of Islamic finance consultancy Ballencrieff House, which is advising the government on a potential sukuk issue, says: "The budget lays the foundations for the UK government to issue a sovereign sukuk within the next year."

Alistair Darling, the Chancellor of the Exchequer (finance minister), announced measures to ensure Islamic financial products are not taxed differently to conventional financial products, such as bonds.

The move is part of the UKs efforts to promote itself as a global centre for Islamic finance and to become the first major non-Arab government to issue a sukuk.

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