A British sovereign sukuk could become a reality this year, as the government prepares for an Islamic bond. The UK wants to become the first western jurisdiction to issue shariah-compliant debt, and to establish London as a regional hub for Islamic finance.
Feedback from the treasury's consultation paper is due in February. And if the political climate permits, a sukuk worth a few hundred million pounds could be issued by the end of the year.
Davide Barzilai is a senior lawyer on Norton Rose's Islamic finance team: "It could happen in 2008. We now have a...