UK support on Sukuk bonds lauded

Muslim Council of Britain, UK's largest Muslim umbrella body, has appreciated the British government's latest initiative to continue supporting the issuance of Sukuk bonds. In a statement, MCB said Sukuk can attract billions of pounds into the UK economy while welcoming the government newest move to solidify London's reputation as the Western hub for Islamic finance.
In response to a recent announcement by the Government economic official to hold consultation on sterling Sukuk issuance, the MCB said it continues to make available its resources to support the government's work on Islamic finance.
The Business and Economics Committee of the MCB has responded to all consultations by the UK government on the proposed Sukuk issuance, drawing upon its members who include market-leading professionals some of whom are also members of the HM Treasury Islamic Finance Experts Group and the HMRC Islamic Finance Technical Committee.
Welcoming the announcement on Sukuk, MCB secretary-general Dr Muhammad Abdul Bari stated that "the process of consultation and robust analysis by the Treasury show that the UK government wishes to create a Sukuk that has the potential to become a market-standard, rather than merely rushing to be the first to market. The careful analysis and transparent wide consultation by Treasury is a beacon for an industry which some fear is running before it can walk". However, he pointed out just as the process of consultation by treasury has been transparent and commendable, any resulting Sukuk must be equally transparent.
"Muslims are rightly concerned that the proceeds of any Sukuk issuance must not be used to fund activities that are not Shariah compliant. That would be contrary to industry standards and would undermine the valuable hard work undertaken the government to date" he added. The Business and Economics Committee of the MCB recently led a delegation of over 35 professionals to the 4th World Islamic Economic Forum in Kuwait to promote the achievements and know-how of Britain in the field of Islamic finance and governance for the social and economic development of Muslim countries.