Egyptian Finance Minister Mohamed Maait announced, on Monday, that his country is preparing to enter the Islamic finance market for the first time, by issuing the first offering of sovereign sukuk, as soon as Parliament approves.
This came in a statement published by the official page of the Egyptian Cabinet on Facebook, without specifying the value of the offering. Read also What is the impact of raising the minimum wage on Egyptians?Sisi raised wages and pensions..so why the Egyptians were angry?The latest of which is the collision of two trains.. The phenomenon of catastrophic accidents in facilities and facilities in Egypt.Exorbitant customs and additional taxes.. Online purchase has become a dream for Egyptians
Maait said that the issuance of the Sovereign Sukuk Law contributes to achieving financial, economic and development goals by diversifying the sources of financing the state budget deficit. He pointed out that the offering helps in attracting new investors, Egyptians and foreigners, to invest in accordance with the principles of Islamic Sharia in both local and foreign currencies.
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 they will be nominal and of equal value.
The minister added that sovereign sukuks will be issued for a specific period in Egyptian pounds or in foreign currencies, through public or private offerings in the local market or in international markets.
He indicated 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 will be in accordance with any of the formulas compatible with the principles of Islamic Sharia.
Previous figures from the Egyptian Ministry of Finance show that the country’s owed external public debt amounted to $129.2 billion until the end of last December, with a growth of 14.7 percent on an annual basis.