Sovereign Sukuk Issuances to Fund the Budget Deficit Could Increase Egypt’s Debt Burden: Economists 

Following Cabinet approval in November 2020 and Senate approval in May 2021, Egypt's Sukuk bill received  approval from Egypt’s House of Representatives on the 6th of June 2021. Meanwhile, Egypt’s Minister of Finance, Mohamed Maait has stated that the funds from the planned Sukuk sales would partly be used to finance the country’s budget deficit. Although the Government of Egypt is optimistic about increasing its development spending, the country’s economists are openly concerned about rising debt levels.

Why it Matters?

According to media reports, almost a third of Egypt’s spending goes towards debt servicing and repayments. At the end of March 2021, Egypt’s foreign debts stood at USD 125.3 billion, up from USD 48.1...