Why Sukuk Could be a Vibrant Investment Opportunity for All

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WHY SUKUK COULD BE A VIBRANT INVESTMENT OPPORTUNITY FOR ALL

  • Daga Govind
  • Published: 12 May 2021


Seven years since it made history as the first non-Islamic economy to issue a sovereign sukuk, the UK issued its second offering on 25th March this year for £500 Million – more than double the size of the first issuance. The Chancellor of the Exchequer Rishi Sunak said, “We’ve set out ambitious plans to make the UK the most open and dynamic financial centre in the world. Strong investor demand for this Sukuk meant we achieved a good price for the taxpayer and will help us develop our relationships with Islamic economies around the world.”1 This five-year maturity issuance increases the supply of high-quality Shariah compliant, liquid assets to the market and saw a strong demand from investors in the Middle East, Asia, and the UK. In this blog, we outline the three key reasons why sukuk is an attractive investment option for investors.