Min menu

Pages

Latest News [LastPost]

Finance: “Sovereign Sukuk” contribute to achieving economic and development goals


- Financing investment projects in the budget to improve the lives of citizens


- Egypt enters the “Islamic finance” market through sukuk for the first time, whose issuance volume reaches 2.7 trillion dollars


Attracting a new segment of Egyptian and foreign investors who are interested in financial investment in accordance with the principles of Islamic Sharia


- Establishment of a state-owned company to manage and implement the “sukuk” process of government sovereign sukuk

The Minister of Finance, Mohamed Maait, confirmed that Egypt is preparing to issue the first offering of sovereign sukuk immediately after the approval of Parliament, and the issuance of the “sovereign sukuk” law, in a way that contributes to achieving financial, economic and development goals by diversifying sources of financing the state’s general budget deficit, and providing The financial allocations required for investment projects, in a manner consistent with the state's efforts to enhance expenditures to improve the standard of living of citizens.

 

The minister pointed out that, with the issuance of this law, Egypt is entering the Islamic finance market for the first time, with the volume of sukuk issuances reaching $2.7 trillion, which helps attract new Egyptian and foreign investors to invest in accordance with the principles of Islamic Sharia in both local and foreign currencies. Sukuk issued in the local market on the stock exchange, and they are kept in the Central Depository and Custody Company. Sukuk issued in international markets issued in foreign currencies are listed in international stock exchanges in accordance with the rules followed for intergovernmental issuances, which contributes to providing additional cash to the Egyptian economy and reducing the cost of financing investments, especially that These sukuk are issued in accordance with formats that are compatible with the principles of Islamic Sharia.

 

The minister explained that the issuance of sukuk is on the basis of assets that will be privately owned by the state, by selling the right of usufruct of these assets without the right of neck, or by leasing them, or by any other method consistent with the contract of issuance of these sukuk in accordance with the principles of Islamic Sharia, on That a decision be issued by the Prime Minister defining the fixed and movable assets owned by the state as “private property” on the basis of which the sukuk are issued, so that there is a mechanism for evaluating the right to use those assets on the basis of which the sukuk are issued or in return for leasing them for this purpose.

 

He pointed out that the sukuk will be issued in the form of a paper or electronic certificate with the specifications determined by the executive regulations of the law, and it will be nominal, of equal value, and issued for a specific period in Egyptian pounds or foreign currencies through public or private offerings in the local market or in international markets.

 

The minister added that a state-owned company will be established to manage and implement the process of “sukuk” government sovereign sukuk that will be an agent for the sukuk owners, provided that the issuance is in accordance with any of the formulas compatible with Islamic Sharia principles approved by the oversight committee stipulated by law, and on the basis of the issuance contract. Its issuance, circulation and redemption are subject to the controls, rules and procedures that are compatible with the principles of Islamic Sharia.

 

The Minister of Finance confirmed that the maximum period for determining the right to use the assets on the basis of which the sukuk is issued or the lease term is thirty years in compliance with the provisions of the constitution, and these assets may be leased back to the issuer, stressing that it is prohibited to seize or take executive measures on the assets on the basis of which the sukuk are issued, with The invalidity of any action or behavior contrary to that, and the imposition of a criminal penalty on the violators.

reaction:

Comments