Egypt is set to issue its first sovereign Sukuk in the second half (H2) of fiscal year (FY) 2021/2022 in a move aimed at providing the required finance for the country’s investment projects.
The timing, size, and type of the issuance will be determined later, the Minister of Finance, Mohamed Maait, said in a statement on Tuesday.
The executive regulations of the Sovereign Sukuk Law will be issued within three months in collaboration with the Financial Regulatory Authority (FRA) and Al-Azhar Al-Sharif to attract a new segment of local and foreign investors wishing to invest in financial instruments compliant with the Islamic Sharia principles.
Taxes charged on treasury bills will also apply to returns on sovereign Sukuk, Maait noted.
A new state-run company will be established to manage the issuance of sovereign Sukuk, which will be based on the usufruct of state-owned assets for a renewable maximum period of 30 years.
