Islamic finance: sukuk bonds traded on the London stock exchange 2011-2018

In 2018, London was the leading center for Islamic finance in Western Europe, after Saudi Arabia, Malaysia, the United Arab Emirates, Kuwait, Quatar, Turkey, Indonesia, Bahrain and Pakistan. Between 2011 and 2018, an overall growth in the value of sukuk issued on the London Stock Exchange could be observed. The numbers rose from 750 million U.S. dollars in 2011, up to 8.6 billion U.S. dollars in 2018. Sukuk are Islamic bonds, which are structured in a specific way, allowing to generate financial returns. It ensures no infringement of the Islamic law, which prohibits benefitting from the interest rate. The interest rate is called "riba" in Islamic finance, which is understood as "making money on money" and is seen as unjust.