The camel’s nose pokes a bit further into the European tent: Islamic Bonds Provide Debt Relief for German State. (Hat tip: Allah.)

In order to help get its debt under control, state leaders are expected to issue Europe’s first Islamic bond within the next few months. Should they succeed, Saxony-Anhalt will be among the increasing number of Western borrowers looking to cash-rich Muslim investors as a source of funds.

Islamic bonds differ from regular bonds in that they pay no direct interest, which is forbidden under Sharia law. Instead, they make regular payments based on profits from approved investments. …

Before the Islamic bonds can go on the market, a “Sharia-board” — a group of Islamic experts — has to check if the investment opportunity is in accordance with Islamic law. Not only does it forbid interest payments, it also bars financial links to industries involving alcohol, gambling, pornography, weapons or pork.