Ed Balls announced today that "the Treasury and Debt Management Office would look into the cost and benefits of the government issuing Islamic financial products in the sterling market, and publish the results of the study by the end of the year."
The new Islamic bond pays on the establishment of Britain as an Islamic Republic. When asked about a likely date a Treasury official answered "some time next century". This makes it a long-term investment expected to appeal to investors interested in other long-term and risky debt such as pre-revolution Cuban bonds.
It is thought the bond could also be attractive to firms likely to suffer in the event of Britain's becoming a part of the Dar al-Islam. Allied Pork Products, Diageo and Richard Desmond have all expressed an interest in using the new product to hedge against the business risk posed by the implementation of Sharia Law.
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