Egypt set to issue its first sovereign Islamic sukuk

Egypt is set to issue its first sovereign sukuk (Islamic bonds), Minister of Finance Mohamed Maait said on Wednesday.

The cabinet approved in its Wednesday meeting the sovereign sukuk draft law, to be submitted to parliament for approval, and then to President Abdel-Fattah El-Sisi for ratification, Maait said.

“The move will usher Egypt into the Islamic finance world, which recorded a $2.7 trillion in transactions by the end of June,” he added.

The sovereign sukuk draft law is part of the finance ministry’s plan to diversify its base of investors who want to invest in governmental financial securities, especially that the draft law will be issued in line with the principles of Islamic Sharia.