On Wednesday, Britain became the first Western country to sell an Islamic bond as part of the Prime Minister’s plan for London to boost its image as a centre for Islamic finance.
A warning that the issue of sharia-compliant bonds could trigger a series of “unforeseen consequences” was made by Bishop Michael Nazir-Ali when David Cameron first announced the proposal at the end of last year.
Orders for the bonds were 10 times more than the Government was expecting to sell.
However, Bishop Michael warned that the Government itself will be subject to sharia in its dealings on the bonds and if the demand grew rapidly the UK might “face a situation where a major part of its financial system is governed by sharia-compliant considerations.”
The Bishop added that a public debate on the introduction of the bonds should include whether sharia judges should be allowed to adjudicate in disputes over government-backed investments.
Watch Bishop Nazir-Ali's full interview with Christian Concern here >