UK Government Sukuk & the Daily Mail

I wonder what people are thinking. On January 29th, The Daily Mail screamed “Revealed: The government buildings sold off by the Treasury as part of the secret Islamic bond scheme and now operated under Sharia law”. The article has important errors and raises equally important questions.

UK Government Sukuk & the Daily Mail

https://islamicmarkets.com/articles/uk-government-sukuk-the-daily-mail
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Foremost, the scheme was not secret. It was highly publicised and debated.

The Daily Mail is really worked up about the restriction on alcohol in the buildings. I wonder if the actual indenture puts the buildings under “Shariah law”. Or, is this a case of common landlord tenant condition which happens to match Shariah aspirations. Landlord tenant conditions are common and include restrictions on the sale or consumption of alcohol on premises.

The Daily Mail certainly lost sight of the purpose of the sukuk. These sukuk helped the five licensed Islamic banks in the UK to have securities that meet Basel III criteria. And, they reinforce London’s position as an Islamic finance hub. Keep in mind, London has been a leader in that role since the 1980’s.

Who were the b...