The draft sukuk law, prepared by the Egyptian Ministry of Finance in coordination with the Freedom and Justice Party, Al Nour Party, Egyptian Islamic Finance Association and the expert Dr. Hussein Hamed Hassan, was finalized last January 16th and submitted to the Cabinet in order to be approved after being amended according to the suggestions presented by the Islamic Research Complex and other bodies, said Ahmed El Naggar, adviser to the Minister of Finance and the one responsible for sukuk.
El Naggar criticized the Cabinet for not approving the draft law till now, noting that the Finance Ministry has done its part by drafting and discussing the law, and it is the Cabinet’s role now to refer it to the Shura Council (lower house of parliament).
As some members of the Shura Council’s Economic Committee stated that the committee will draft a sukuk law, if the Cabinet did not submit the Finance Ministry’s draft sukuk law, El Naggar pointed out that the committee has the legal right to draft a sukuk law if the Cabinet delayed in offering its draft.
He emphasized on the importance of approving the sukuk law by the Cabinet and the Shura Council as soon as possible as this will contribute to increasing the volume of investments in Egypt and attracting US$ 15 billion annually to the country. The first sukuk issuance is slated to invest in wheat silos project presented by the Ministry of Supply and Internal Trade.
