Egypt plans to start issuing sukuk, or sharia-compliant Islamic bonds, within the second half of the current financial year 2021/2022, its finance minister announced in a statement on Tuesday.
Minister Mohamed Maait said the country would later determine the exact timing and size of the first offering, as the executive regulations for a new law allowing for issuance of sukuk are expected in the next three months. The government plans to establish a state-owned company to manage the sukuk issuance, which could be offered in local or foreign currency, the statement added.
Returns on sukuk will be taxed in the same way as Egyptian treasury bonds.
According to the statement, the money raised through sukuk is set to help fund the government’s social and economic development projects.
The sukuk will be Egypt’s fourth source of finance, along with treasury bills, domestic loans, and credit facilities, and foreign loans, and credit facilities.
