The UK is getting over the post-Brexit depression
Employment figures and investment in real estate in the UK has steadied following initial concerns post-Brexit. In other news, in Qatar the sukuk has shown to be a safe asset in the context of international finance.
This week at Del Canto Chambers we have focused on Britain, analysing the aftermath of Brexit in the real estate sector as well as the labour market and M&A activity, without forgetting Qatar and the increased interest in the sukuk by international investors as a secure financial instrument in the field of Islamic finance.
Our Managing Partner, Leon Fernando del Canto, has had an article published in Acquisitions Daily, entitled “UK M&A: Waving not drowning“. His article looked into how, despite the barrage of negative forecasts that loomed over the sector as a result of Brexit, recent data shows that activity has by no means stalled. In fact, the latest figures suggest that the UK remains an attractive destination for foreign investors.
Leon Fernando del Canto also had an article entitled ‘Holiday Hell’ publish in weekly legal title New Law Journal, in which he explained how British citizens who own a second home in Spain are facing uncertain times; this is not only because of Brexit but also due to the non-binding opinion of the Advocate General of the ECJ on mortgages affected by floor clauses that may affect those who have taken out mortgages with Spanish banks.
On the other hand however, in the UK the latest employment statistics and developments in the housing market (especially in London) are much better than expected, which supports the idea that fears about the consequences of Brexit were unfounded.
Finally, we analyse how the sukuk, a financial instrument similar to bonds, is increasingly being taken into account by international investors as a safe and reliable investment, within the scope of so-called Islamic finance. The main trait of this financial model is that it fulfils the precepts of Sharia or Islamic law which forbids, amongst other practices, the payment of interest and speculation.
We hope you look forward to next week’s round up from Del Canto Chambers. We aim to continue keeping you informed on important matters such investment and taxation in Spain, the UK and Qatar, as we have been doing so far.
Xavier Nova (@xavinova)
Director of Del Canto Chambers