Economic Affairs Committee in Egypt’s Parliament Passes New Law Permitting Sukuk Issuances

Just a day after the Egyptian Senate voted in favour of the 24-article law, the Parliament's Economic Affairs Committee approved a new law on the 18th of May 2021 allowing the Finance Ministry to issue sovereign bonds (Sukuk) on local and foreign markets. The Sukuk will be issued both in paper as well as electronically and will be denominated in EGP and foreign currency.

Why it Matters?

According to Ahmed Samir, Chairperson of the Economic Affairs Committee, the draft law sets the framework for Egypt to enter into the sovereign bonds market for the first time. Further, Sukuk are a globally-recognized instrument to raise capital on the world stage, and Egypt could join these markets to raise funding that could be used on investment programmes and deve...