Egypt to Amend Framework Governing Sovereign Sukuk Sales

According to media reports, Egypt’s House of Representatives is set to revise a proposed framework pertaining to sovereign Sukuk sale. Should the proposed revision be passed, a state-owned special-purpose vehicle that is to be set up under the Sovereign Sukuk Act to manage the sale of government Sukuk may not be subject to oversight from the Financial Supervisory Authority.

Why it matters?

Ratification would mean that the law would treat sovereign Sukuk no different to other instruments sold by the Government of Egypt, including Eurobonds, green bonds, as well as local treasuries. This implies that sovereign Sukuk sales, unlike corporate Sukuk, would not require approval from Egypt’s Financial Regulatory Authority, but an authorisation fro...