London-based Ethical Asset Management has launched what it calls the world's first "investment sukuk", aiming to resolve a major area of controversy in Islamic finance by treating the vehicle as an equity instrument rather than as a bond.
The firm aims to raise 200 million pounds ($318 million) through the sukuk in the next 12 to 18 months, with 50 million pounds required to start buying the assets which will back the instrument.
Islamic finance has existed in Europe for more than forty years, with the United Kingdom one of the world's leading countries in the field, and others, such as Malta and Luxembourg, also at the forefront. In Italy, where the sector is more or less non-existent, results of the first experiments are now beginning to be seen. In 2009, for instance, Deloitte set up a sector dedicated to Islamic finance. ''At the moment, we are developing products compatible with Italian regulations,'' says Alberto Liotta, a director at the consultancy firm, a guest at a conference organised by Islamic Relief Italia. ''Attention is mainly focussed on conventional financing instruments, such as leasing, the concept of which can be brought closer to those of Islamic finance''.
Financial institutions based in the United Kingdom on Thursay called on the Philippine government to enact laws and rules that would allow Islamic finance (IF), explaining that the country stands to gain from over $1 trillion in global funds on tap.
According to British Ambassador Stephen Lillie, Islamic finance is very much relevant to the Philippines and that there “is potentially a big opportunity.”
London has been providing Islamic financial services for 30 years, but in recent years the industry has started to attain a greater profile.
The United Kingdom ranks ninth globally amongst countries providing Islamic finance services, according to a May 2011 CityUK report. That makes it the leading Western country and Europe's premier Islamic finance center with USD 19 billion of reported assets. London has been providing Islamic financial services for 30 years, but in recent years the industry has started to attain a greater profile.
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