Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether her Department has made an assessment of the potential merits of expanding the UK’s sovereign sukuk programme.

The UK is the leading Western destination for Islamic finance businesses. The Islamic finance sector also has a role in the overall UK financial ecosystem by providing sharia-compliant products for the UK’s Muslim population as well as its contribution to the UK’s competitiveness as an Islamic finance hub.

The Government aims to build the right environment to allow businesses to capitalise on growth opportunities in the UK and also promotes the UK’s capabilities and expertise overseas. For example, the Economic Secretary to the Treasury visited the UAE and Saudi Arabia in February 2025 and attended the UK-Saudi Arabia GREAT FUTURES Leadership Summit in September 2025.

The Government is considering opportunities to support the Islamic finance sector through UK trade agreements with partners which have significant domestic markets for shariah-compliant finance, such as the Gulf Cooperation Council.

The UK's two sovereign sukuk issuances have been successful in providing a platform for and helping to maintain the UK’s position as the leading western hub for Islamic finance while also supporting the UK’s Islamic banks. Given the development of the sector in the last decade and the relatively high cost of issuing sukuk, the Government is not at this time planning to issue another Sukuk after the current Sukuk matures in summer 2026.

Officials continue to engage with industry and international partners to explore opportunities for synergies between Islamic finance and the sustainability agenda.

Islamic financial instruments are covered under the same legislative and regulatory framework as their conventional equivalents, and the Government works to address any unintended differences that may arise.