Egypt considers entering sukuk market

Egypt is considering tapping the international sukuk market in the coming fiscal year, as it looks to diversify funding sources to drive forward its economic revival efforts.

The Sharia-compliant issuance, either in dollar or euro-denominated sukuk, which Finance Minister Mohamed Maait hopes will happen in fiscal 2018-19, would mark a revival of a plan shelved since 2013 when the government under then-Islamist President Mohammad Morsi issued the law to pave the way for the country’s first Islamic bond.

“I expect it will witness great demand as this type of financing instrument has a large market,” Maait said in his first interview since assuming the new post, two weeks before the July 1 start of the new fiscal year.

“Sukuk needs an appropriate legislative umbrella, and we can amend the existing law or draft a new one.’’