With the demand for UK financial products increasing within and outside the country the UK government will be issuing Islamic bonds which will make it the first western state to do so.
By 2008 we will see the face of first Sharia compliant UK government bonds. Earlier, these bonds were being issued by Islamic states such as Pakistan, Malaysia, and some corporate issuers but this will be a first by a western state.
They will not only be issued as government bonds on wholesale financial markets but the government is also looking forward to use Sharia compliant bonds to enable Muslims living in Britain to invest in them through post offices and banks.
Launching of these bonds is expected to position UK as an international financial center. It can also be seen as a damage building exercise to improve relationship with the Muslims. The million dollar question is whether UK will be able to create a place in the heart of the Muslim after interfering in Iraq? I doubt so.
Via ft
