IslamicFinance.de

The new Egyptian Sukuk law will be approved on Wednesday by the cabinet before being referred to the Shura Council on the same day. It is fully Sharia-compliant, and it will have a special Sharia committee to oversee its implementation, said Ahmed El-Najjar, member of the economic committee at the Freedom and Justice Party (FJP) and advisor to the minister of finance. The sukuk revenues will be used to bridge the budget deficit gap in an indirect way. However, they will not be used as an alternative to regular debt instruments, but will, rather, function more within a complimentary capacity.

The draft of the sukuk law aiming to regulate the trading of bonds in a manner compliant with Islamic law was finished by the Egyptian Financial Supervisory Authority (EFSA). In a statement, EFSA explained that the draft was created following a detailed study of international experiences in such regulations. Topics included in the draft are activities which can be financed by sukuk and the various kinds of financing instruments available. Before issuance, the bill stipulates the approval of a committee of three Islamic finance scholars on any sukuk offering.

The Egyptian Financial Supervisory Authority's (EFSA) draft law regulating Shari’a compliant debt tools has been brought to a final version. The proposition consists of 30 articles which establish a legal framework for the issuance and transaction of sukuk. The purpose of the law is to expand the scope of activities that sukuk can finance. Moreover, it shall allow the issuance of business sukuk.