ZANZIBAR, May 23 -- ZANZIBAR government marked a historic financial milestone yesterday by officially listing its first Ijara Sukuk, a Shariah-compliant sovereign bond on the Dar es Salaam Stock Exchange (DSE).

Zanzibars Minister of State in the Presidents Office (Finance and Planning), Ms Saada Mkuya, described the move as a key step towards inclusive economic development.

“This is a major milestone for investors and the overwhelming interest has already sparked discussions on issuing a second tranche,” she said at the launch on Wednesday.

The Ijara Sukuk, based on a leasing structure that complies with Islamic law (Sharia), avoids interest and offers returns through profit-sharing. It involves a contract for the hiring or...