Continuation
Islamic financing activities started in the UK in the 1980s.
At that time the London Metal Exchange provided
Shari’ah-compliant overnight deposit facilities.
It based on the murabahah principle.
In 2005, the Sanctuary Building Sukuk was launched.
It was the first corporate sukuk in Europe and the first from
the UK.
Based on the same structure, the second corporate sukuk was
issued by International Innovative Technologies (IIT) Ltd in 2010.
The British government undertook a consultation on the
legislative framework for alternative finance investment bonds or sukuk.
That are structured to have similar economic characteristics
to conventional debt instruments.
Following the consultation, the government introduced
measures clarifying the regulatory treatment of corporate sukuk.
It reduced the legal costs for this type of investment and
removed unnecessary obstacles to their issuance.
From the research paper of
European Central Bank
(Authors:
F.Mauro, P.Caristi, S.Couderc, A.D.Maria, L.Ho, B.K.Grewal, S.Masciantonio, S. Ongena and S.Zaher)
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