Britain set to become first non-Muslim country to issue Islamic bond
Prime Minister David Cameron has announced plans for Britain to become the first non-Muslim country to issue an Islamic bond in a bid to make London one “of the great capitals of Islamic finance anywhere in the world”.
Speaking at the World Islamic Economic Forum, Mr Cameron said that plans were underway to issue an Islamic bond or ‘Sukuk’ worth £200m to encourage greater Islamic investment into the City.
Sharia law
Sukuks are financial certificates that comply with principles of Sharia law, which prohibits the charging or paying of interest.
This is the first time that the World Islamic Economic Forum has been held in London, with attendees including Afghan president Hamid Karzai, King Abdullah of Jordan and Prince Salman bin Hamad Al Khalifa, Crown Prince of Bahrain.
Mr Cameron told the audience: "I don't just want London to be a great capital of Islamic finance in the Western world, I want London to stand alongside Dubai and Kuala Lumpur as one of the great capitals of Islamic finance anywhere in the world."
“Short sighted”
But Andrea Williams of Christian Concern said: “This is terribly short sighted. Sharia finance is part of a wider system of Islamic law, a system which benefits Muslims over non-Muslims.
“It is well known that Sharia law contains some fundamental inequalities, one of which is that between Muslims and non-Muslims.
“The Prime Minister needs to encourage investments which benefit all people, not just those of one religious group.
“He seems to be completely unaware that welcoming this kind of investment will give Sharia law a foothold in the UK.”
Price to pay
Social commentator Melanie Phillips also commented: “… this money comes with a price. And that price is Britain’s identity as a western country.
“For ‘sharia-compliance’ is not like, say, compliance with health and safety rules. Sharia is the Islamic system of jurisprudence which does not acknowledge any legal authority other than itself and demands adherence to its own precepts.”
Sources:
