Hong Kong passes tax law to enable Islamic bonds
Hong Kong has enabled the issuance of sukuk, or Islamic bonds on its soil. A bill passed on July 19 is designed to attract sukuk issuers looking to broaden their investor base beyond Islamic nations. Before the bill, such issuance would have been subject to a heavy tax burden since the bonds involve multiple transfers of assets. Hong Kong’s ambition to become an international Islamic finance hub has been an example of more talk than action—the idea of issuing the first sukuk in the city was floated in 2008 by the Hong Kong Airport Authority but it didn’t materialise due to the onset of the global financial meltdown.

… But international Shariah board in dramatic shake up
The International Islamic Liquidity Management Corp (IILM), a Malaysia-based organisation that aids central banks to develop and consult on Islamic financial instruments has reshuffled its Shariah board. The IILM has lost two Saudi scholars, whose country have withdrawn from the IILM, as well as two Qatari bank representatives. Media reports indicate the body is in dispute over appropriate assets to include in sukuk issuances.