The draft sukuk law, expected to be approved soon, will enable low-income people to invest their funds in Egypt’s infrastructure projects which will benefit both people and the country, said Ahmed El Naggar, adviser to the Minister of Finance.
A citizen requires US$ 300 million at least in order to invest in the first issuance of sukuk. This kind of investment is a safe investment instrument for young investors that is exempt from taxes and has pre-determined returns with regular payment periods, he added.
El Naggar pointed out that Malaysia has great experience in developing a range of sukuk concepts as it launched a new structure of sukuk for low-income people with guaranteed and fixed profits. Malaysia allocated an issuance of sukuk to finance a new railway line in Kuala Lumpur. This issuance was with value of US$ 1.5 billion; of which US$ 300 million were allocated for low-income people and young investors.
