“The legal and regulatory framework for issuing Islamic bonds is mature. We can proceed at any time [for the Northern Metropolis], provided the market reflects that issuing these instruments is cheaper and yields better results,” he said in an interview with the Post in Riyadh.

Chan said that the government would review funding options for the scheme, which aims to turn 30,000 hectares (74,132 acres) of land into an engine for economic growth and a housing hub, and would select the most cost-effective method while expediting development.

In the annual budget announced in February last year, Chan said authorities planned to issue HK$95 billion (US$12.2 billion) to HK$135 billion in bonds annually over the next five years to drive the development of the Northern Metropolis and other infrastructure projects.

Chan stressed on Thursday that Islamic finance was “always a component” of the government’s financial planning.