The UK government is preparing to launch a £200m sukuk (Islamic bond) next year, which could be backed by government property.
This would make the UK the first non-Muslim government to launch a Shariah-compliant bond.
Prime minister David Cameron is due to make an announcement about the 9th World Islamic Economic Forum, which is currently under way in London. This year is the first time that the event has been hosted by a non-Muslim country.
The UK has already seen some activity in property-backed Islamic bond issuance, with London-based bank Gatehouse issuing a 3%, five-year sukuk in January this year. The sukuk is backed by a single property leased to Fujitsu in Viables Business Park, Basingstoke, and raised £6.9m. Gatehouse views the initial issue as a “dry run” for more ambitious property-backed Islamic bonds in future.
sophia.furber@estatesgazette.com
