Returns on sukuk could be offered in local or foreign currency
Egypt to begin issuing sukuk in first half of 2022
Finance ministry says money raised through sharia-compliant Islamic bonds will be used to help fund the government's social and economic development projects.
Tuesday 24/08/2021
Returns on sukuk could be offered in local or foreign currency
CAIRO - Egypt will begin issuing sukuk, or sharia-compliant Islamic bonds, in the first half of 2022, the finance ministry said in a statement on Tuesday.
The exact timing and size of the first offering is yet to be determined. Executive regulations for a new law allowing for issuance of sukuk are expected in the next three months, and the government is planning to form a state-owned company to manage sukuk issuance.
Returns on sukuk, which could be offered in local or foreign currency, would be taxed in the same way as Egyptian treasury bonds, the finance ministry said.
Money raised through sukuk would be used to help fund the government's social and economic development projects, the ministry added.
Egypt has been trying to diversify and extend the average maturity of its debt.