Task
I want someone to use the expected return rate (ER) formula to calculate the return rate for a Sukuk investment of £130 billion for the next 14 years (2021-2035). The £130 billion investment will come from the GCC countries (Gulf cooperation countries: Saudi Arabia, Bahrain , Qatar, Kuwait, UAE, Oman) and will be used to Help finance the British governments ambitious High Speed 2 (HS2) program.
Below is a link which will demonstrate previous large scale Sukuk investments in to the United Kingdom which the UK government issued £500 million. You can use these figures to better gorge an idea to calculate the ER rate for the £130 billion investment for the next 14 years. The previous Sovereign Sukuk issuance has (and is) yielded a healthy 0.33% annual profit rate (yield equivalent )for their Sukuk holders (bond holders), we would therefore mathematically ascertain the expected average ROI on the £130 Billion investment for the next 15 years based on the 0.33 – 1.5 average ROI. So, £6.4 – £28.5 Billion for the initial £130 Billion investment is expected which is definitely a worthwhile long term investment opportunity for the GCC. – btw I don’t know if I did calculated correctly so please make correction in case I did make a mistake
Here is the link to the previous £500 million Sukuk issued by the British government and its existing rate of return:
https://www.gov.uk/government/news/uk-bolsters-islamic-finance-offering-with-second-sukuk
This is the mathematical formula below you will use. I just want you to apply these figures aforementioned above in to the formula correctly and calculate the return on investment for the next 14 years and write down each variable of the formula and explain it properly.
Explanation of this formula and how it works as well as its application can be found on the article I have attached. Use it and simply rearrange the wording and add in the figures and please avoid plagerism
Finally I want a conclusion written on the prospect of the return on investment for the next 14 years and why this £310 billion is a worthwhile investment From the GCC country into HS2 program
*SUKUK definition: Sukuks are alternative investment financing in to government bonds which doesn’t entail annual interest payments. Sukuk investments are Shariah compliant and therefore acceptable in islamic law. Whereas convention government / cooperate issued bonds are not permissible as they pay interest annually on your investment amount and receiving interest payment are strictly prohibited under Islamic Law
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