Egypt’s Parliament Approves Sukuk Bill; Paves Way for Country’s Inaugural Sovereign Sukuk Issuance 

Egypt’s Parliament has approved a new bill on sovereign bonds (Sukuk) on the 6th of June 2021, paving the way for the country’s Government to usher in an Islamic financing system and offer its first sovereign Sukuk on local and foreign markets, according to Egypt’s Minister of Finance, Mohamed Maait.

Why it Matters?

The Sovereign Sukuk bill is part of the Government’s new policy of diversifying sources of finance, attracting a larger investor base, and boosting cash liquidity into the country’s governmental financial market. In addition, the Sukuk bill will also be harnessed as a new financial tool to help cover the state’s public budget deficit. Proceeds of the Sukuk are anticipated to be used on development projec...