Islamic finance in the European Union may be taking a back seat as the continent is gripped with a dire euro zone sovereign debt crisis which has even impacted on sovereign Germany's attractiveness as a bond investment asset class.
Similarly, London's role as a hub for Islamic finance, investment and trade - the declared ambition of the previous Labor government and the current Conservative-Liberal Democrat Coalition - is stalling because of the disappointment of the UK Treasury deciding not to raise funds in the wholesale sterling market through a debut sovereign Sukuk. Luxembourg and France have also introduced tax neutrality measures to facilitate sukuk and other Islamic financial products, but have yet to commit to issuing a debut sukuk, claiming as the UK does it is not the right timing nor at the right price. (source)
