South Africa appears to be preparing to issue Islamic bonds (sukuk) in the near future, as the country’s central bank has asked private banks for proposals for such a venture.

South Africa has a relatively small Muslim population, so there can be little doubt that the instigation behind this move comes from outside the country, from monied interests in the Islamic world. This is something we can expect more of. Don’t be surprised if one day in the not-too-distant future the US Treasury doesn’t float the idea of a sukuk, using Shariah-compliance to attract petrodollars from lenders who insist upon it…

In a move that could position SA at the forefront of the global Islamic Sharia law-compliant sukuk (bond) market, national treasury has called on banks to submit proposals for the issue by government of a sukuk.





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