For some time London officials and UK finance community executives have expressed the intention of making London the capital of Shariah-compliant finance in the West.
Now they are taking their aims to a whole new level as they contemplate pushing for the United Kingdom to issue sovereign debt in the form of Shariah-compliant bonds, known as sukuk.
As we have reported previously on SFW, sukuk are fast becoming the weapon of choice for promoting Shariah through Shariah-Compliant Finance.
Here is how that works:
• As we know from historical records and contemporary statements from Islamic leaders, the purpose of Shariah Finance/Islamic economics is to promote Shariah itself.
• Islamic imperialists are now using the credit markets to force Shariah-compliance worldwide, not just among and between Muslims.
• Sukuk impose Shariah-compliance two ways:
1. Islamic issuers increasingly issue Sukuk rather than conventional debt instruments. Therefore, creditors who want to invest in the credit markets are compelled to invest their money in a Shariah-compliant way.
2. On the flipside, Islamic investors who invest in the credit markets are increasingly insisting on Shariah-compliance, thus compelling issuers/borrowers to issue Sukuk instead of conventional credit instruments, such as debentures. This is happening in the sovereign debt markets, as well as the corporate debt markets. The power wielded by oil-rich Islamic nations, institutional and individual investors makes this form of Islamic imperialism to impose Shariah-compliance globally potentially very powerful.
Here is an excerpt and link to the article on the push to have the UK issue sukuk:
U.K. Islamic Bond Back on Agenda as London Seeks Shariah Market
The U.K. government is considering reviving plans to sell Islamic bonds as part of an initiative to boost Britain’s role as a center for Shariah-compliant financing.
Treasury Minister Greg Clark and Sayeeda Warsi, a minister in the foreign office, are leading a working group to raise the profile of the Islamic finance industry, the Treasury said in an e-mailed statement today. Among items discussed at today’s inaugural meeting was the sale of Islamic bonds…
The U.K. announced plans five years ago to become the first Western government to issue bonds compliant with Islamic law only to disband the initiative in 2011 when the Debt Management Office said the securities don’t “provide value for money.”