MCB welcome UK support on Sukuk bonds

 

LONDON, June 6 (APP)-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.

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