Islamic Britain lures investors: Finance Minister George Osborne announced in the “Financial Times”, to want to spend a government bond for the first time by Sharia law. Systems of this kind are a huge growth area, volume in the markets is estimated at more than a trillion dollars.

The British government is looking for new ways to boost its financial industry : Finance Minister George Osborne writes in a commentary for the ” Financial Times ” ( ” FT ” ) , London, Great Britain wanted to make the western center for these plants . The government is planning a bond of 200 million pounds, Osborne. Prime Minister David Cameron will officially present the plan on Tuesday in the World Islamic Economic Forum in London.

Plants under Islamic law as one of the most important growth sectors in the financial markets . Its volume is estimated at more than a trillion dollars. By 2015 , the market is expected to double , according to estimates.

Specifically, it is for the British to advance Islamic bonds , known as sukuk . Because interest is forbidden under Islamic law , these securities are based on real assets , investors participate in their development . In the case of the British government, the current revenue from state real estate assets could be according to the ” FT ” . But the bond is likely to be a symbolic act primarily to attract Muslim investors.

The difference of Sukuk to conventional bonds lies in the fact that the products must comply with the Islamic law of Sharia. This means:

* The transactions must conform to Islamic values​​. As investments are prohibited in companies that have to do with the production of pork. Also invest in weapons and alcohol producers are prohibited, the same applies to the adult industry and parts of the entertainment industry.

*Interest or usury and is forbidden. All contract terms must be transparent, unfair penalty clauses about forbidden.

*No value of money must occur. Profits from gambling and speculation are considered immoral.

Reinhard Berben of Franklin Templeton Investment Funds described the difference to conventional bonds in the “stock exchange newspaper” as follows: “While a conventional bond represents a promise to repay a loan, Sukuk represent an ownership share of receivables, leases, projects, a company or partnership or an investment dar. “In short: “Sukuk represent ownership of property, while the owner of conventional bonds have debt,” said Berben.

For the British government, however, it is primarily about strengthening the domestic financial industry. “While other fight in the West against the change, we embrace it,” says the finance minister Osborne in the ‘FT’. “We are beating the drum for British business, explore new markets and welcome investors from abroad with open arms.”

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