Uk Islamic Bond Now Available

[ukanonymous]

Another step in the right diection? Or turning more into an Islamic state? http://www.bbc.co.uk/news/business-24722440

[jim360]

I quite agree. Today, showing respect for the financial needs of our Islamic Citizens. Tomorrow -- full Sharia law across the board. It's terrifying!

[jno]

an Islamic bond "unveiled"? Must be male.

[jake-the-peg]

I think we can see what this is about

It's positioning the UK as a leading banking sector with full international facilities.

Gosh imagine what would have happened if all our banking were 'based on a real trade or business activities' rather than futures, derivatives junk bonds and other speculative investments

Terrifying eh?

[Kromovaracun]

Correct me if I'm wrong, but as far as I can tell, this just essentially means the government will be borrowing more from Islamic financiers.

I have to say I find this slightly unsettling. I don't really understand how proving ourselves to be a good "Islamic" investment should be any different to proving ourselves to be a sound normal investment. We don't seem to have to prove any cultural credentials when attracting investment from China, for instance.

In fact I'd always thought one of the better things about capitalism and financial trade was that it forced people to ignore their differences and just focus on what they had in common - a desire to make profit. Apparently not. :/

[Kromovaracun]

"Another step in the right diection?"

What direction? I don't understand what you mean.

[Kromovaracun]

""I don't just want London to be a great capital of Islamic finance in the Western world, I want London to stand alongside Dubai as one of the great capitals of Islamic finance anywhere in the world,""

I think this might just be the most meaningless thing ever said by a human being. Literally, I have no idea what he's talking about.

[sunny-dave]

Well I did have a full answer in my head, but can save time by saying :

"I agree entirely with jtp"

[jno]

I presume he wants to make London a place Muslims will invest in. They don't invest in just anything, as per the things mentioned on the link. The sharia bonds will be crafted in some way - don't ask me how - so that their returns won't be tainted by dealings in things they object to. As there's a lot of Muslim investment available, it's not unreasonable to bid for some of it.

There's more about it here

http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/10410467/Britain-to-become-first-non-Muslim-country-to-launch-sharia-bond.html

[Sqad]

Come on boys, don't let's go over the top here.......I have had an account with a London based Islamic bank for a number of years.........it isn't new and the thought of an Islamic Bond, if the % interest returns are good......will be well received.

http://www.blme.com/#/page/islamic-capital-markets

[ToraToraTora]

Nothing new, there are alreay Islamic financial products out there. For example Barclays have been providing Islamic mortgages for years. They just use various terms and devices to avoid Usery so instead of intereset there are management fees for example.

[Old_Geezer]

Usury is a matter of opinion. Avoidance of interest as a charge for a loan but accepting of a different route for financial gain has always looked to me to be simple ‘sleight of hand’ hiding what is essentially the same cost/charge by a different path. It’s a strange world.

Anyway, it's what commerce is about, supplying a demand for profit.

[ludwig]

The Islamic version of an ethical investment product. No big deal.

[jomifl]

I think Natwest is trying to be islamic as they seem to be very reluctant to give interest.
This is all very silly really as it only a way of massaging 'interest' to appear to be something else such as a 'fee' or 'credit' to make it acceptable to muslims. Hopefully Al Quaida will invest in London and have access to safe deposit boxes..hmmmm.

[ludwig]

// it only a way of massaging 'interest' to appear to be something else such as a 'fee' or 'credit' //

Reminds me of the kosher machinery that orthodox jews use to get around their silly rules about using electricity on the sabbath. I'm sure god is fooled.

[ludwig]

This thread's been going over two hours and no-one's said anything along the lines of 'The name's Bond, islamic Bond - licensed to kill the infidel' yet.

[FredPuli43]

Ancient Jewish joke: Teacher: "Who is the greatest man who ever lived? There is a prize for best answer!" Young Cohen "Jesus, miss!" "You were first with best answer, Samuel, and you win, but why didn't you say Moses?" "Well, I knew it was Moses really, but business is business"

That's what Cameron thinks. This is niche marketing but it is a big niche.

[youngmafbog]

Seems to make sense to me. Just another instrument.

[FredPuli43]

Yes,jim. I take it that you make mock. But there are those who think that Islam is taking over the country, and we'll have sharia law for all. Times change , but some things, some fears of strangers and minorities, persist. "Who's 'e Jim?" "A stranger" "Well, 'eave 'alf a brick at 'im !" was Punch's take on it, a long time ago. There was a time when Jews were equally feared; they were all part of a conspiracy of Jews to take over the world, according to German propaganda, and Mosley seems to have thought the same.

[Brenden]

I worked for a council that loaned monies interest free to muslims for their property and businesses, when they sold said properties they kept the profits - nice if you can get it.

[jomifl]

Brenden, did they need a certificate of 'islamicity' or did a quick 'inshallah' do the trick.