Sukuk (Islamic trust certificates) issuance, both sovereign and corporate, has shown spectacular growth in the last year two years with origination spanning Texas in the US, to Saxony Anhalt in Germany, to the GCC countries, and Malaysia. Even Japan is on the verge of issuing its debut sovereign Sukuk.

In the UK, the Treasury is in the process of drafting laws which will govern the tax treatment of Sukuk issuance and Takaful (Islamic insurance) products. In fact, Chancellor of Exchequer, Gordon Brown will include enabling legislation for Sukuk and Takaful products in his next Finance Bill. Read More...