Contributed By Winston & Strawn London LLP
Al Rayan Bank Sukuk
In February 2018, Al Rayan Bank (UK) issued the largest ever sterling sukuk for GBP250 million. Al Rayan Bank became the first bank in the world to issue a public sukuk in a non-Muslim country.
Although still in the early stages of development, there has also been increased focus globally on fintech in Islamic finance, driven by growth in demand and greater awareness among Islamic finance market participants – and prospects for developments in this area (particularly in the Islamic peer-to-peer financing and crowd-funding space) appear positive in the UK.
Consistent with the long-standing perception of it as a Western hub for Islamic finance, the UK is encouraging the growth of Islamic finance through the implementation of amendments to legislation and government policy, and the potential for the further development of its Islamic finance industry remains positive. The UK’s commitment towards the development of the Islamic finance market is expected to continue post-Brexit, particularly because even a no-deal Brexit could incentivise investment from the Gulf if real-estate assets decrease in value.