The Egyptian government is once again revisiting the issue of the Sukuk Law. Although the Sukuk Law was issued back in 2013, the law was never implemented.
Recently, the government approved several amendments to the current capital market law, Law Number 95 of 1992, including a recommendation to repeal the aforementioned Sukuk Law. The amendments include many provisions to regulate the issuance of Sukuk by public and private sector entities.
The aforementioned provisions regulate the entities eligible to subscribe to the Sukuk (Sukukholders), as well as the entities eligible to issue Sukuk (Sukuk issuers).
In addition, the provisions impose certain disclosure requirements on the issuers of Sukuk.
The government announced that the objective of issuing the new Sukuk legislation is to provide new investment channels to the Egyptian capital market and to offer new financial tools for both local and foreign investors. The introduction of the Sukuk amendments marks an important step toward opening
a new era of Islamic finance in Egypt, a country with an overwhelming Muslim population (over 90 million) and one of the largest markets in the Middle East. The amendments have been referred to
the Egyptian parliament for discussion and ratification.
The Sukuk amendments were developed by a committee formed by the Ministry of Investment and members of the committee included the following:
- Chairman of the Financial Supervisory Authority.
- Executive chairman of the General Authority for Investment and Free Zones.
- Representatives of the central bank.
- Representatives of the justice, finance and legal affairs ministries, and Representatives of the parliament and the Egyptian Exchange.