| answer text |
The proceeds from the Sukuk, like the proceeds from the wider gilt programme, flow
into the consolidated fund. This is used for general expenditure, including expenditure
on infrastructure. The government considers the core gilt program rather than the
Sukuk to be the most cost-effective way of raising money for expenditure, including
that of infrastructure projects. The main purpose behind the decision to issue a second
Sukuk is to reaffirm the government’s commitment to the UK being the Western hub for
Islamic finance, whilst also providing high-quality liquid assets to UK-based Islamic
banks.
|
 |
