Thursday, March 20, 2008

UK: Issuing Sovereign Sukuk

Alistair Darling
The man who is selling us down the river to dhimmitude.

Putting the UK in SukUK.

The fact that the UK Treasury is taking powers in the Finance Bill 2008 to issue a Sukuk should the occasion arise in the near future, is a positive sign of the Labour government's intent and commitment to the Islamic finance sector in the UK.

Sukuk set to be law before next UK budget.

Sovereign Islamic bonds could be issued before the next Budget thanks to ongoing government support, Junaid Bhatti, director of Islamic Finance consultancy Ballencrieff House, has claimed.

Mr Bhatti said he was pleased Islamic finance continued to receive the support of Alistair Darling and said the chancellor's Budget laid the foundations for the UK government to issue a sovereign sukuk.

He said: "Several measures have been announced, which will help with the implementation of this project. The main changes will be the introduction of modifications to the stamp duty and taxation regulations, which will ensure that the Sukuk, or Islamic bond, is given the same tax treatment as conventional bonds.”

I wonder if that's the modification that will correct the loophole allowing approximately one billion pounds worth of sukuk product to avoid paying stamp duty up to now...

Here's their angle. Sukuk will take that nasty sub-prime taste out of your mouth!
Mr Bhatti said the sector could flourish in light of global credit turmoil as the ethical structure of Islamic finance (joke)ensured lenders looked to its responsibilities before issuing loans.

He said: "Capitalist economies are suffering severe liquidity shortages due to the global credit crunch some of which is due to irresponsible lending and the gambling of customers' money.

"Islamic finance is the perfect antidote to this, because it forces banks to act more responsibly and with greater prudence. It does this by balancing the risks between banks and their customers, and through an insistence that all transactions must be supported by tangible assets."

Meanwhile the UK government stands ready, willing and able to sell us down the river to the Islamists.

The government said it remained committed to examining the issuing of Sukuks and would take legal powers to facilitate any potential future issuance in the Finance Bill 2008.

More beneath the fold

2008 London Sukuk Summit.
Sukuk market to be worth $200 by 2010
Islamic finance expert welcomes UK support of "Halal Finance" in budget.

And what did I tell you? Bahrain: Sukuk is solution to US sub-prime crisis.