Sukuk issue bolsters the UK’s credentials as Islamic finance hub, says Eversheds’ Moylan

Eversheds partner Ben Moylan has commented following the news that the British government is to be the first Western sovereign to issue a sukuk — an Islamic bond.

Moylan said: ‘It is great to see that the UK looks likely to be the first past the post in becoming the first Western sovereign to issue sukuk and interesting to note the presence of banks from across the Gulf and Malaysia in the syndicate.

‘While the size of the issue is obviously dwarfed by both the conventional gilt market in the UK, and some of the mammoth sukuk issues, particularly across the Gulf, of recent years, the hope must be that the issue will stimulate other UK institutions to follow suit.

‘In the meantime, the issue will further bolster the UK’s credentials as an Islamic finance hub and provide a welcome route for UK-based Shari’ah-compliant institutions to manage their liquidity needs.’