Egypt’s Prime Minister Mostafa Madbouly has issued a decree amending the regulations of the Capital Market Law, which is the largest amendment to be applied in this regard since November 2018, setting clear guidance on acceptable forms of sukuk.
Egypt’s Prime Minister Mostafa Madbouly has issued a decree amending the regulations of the Capital Market Law, which is the largest amendment to be applied in this regard since November 2018, setting clear guidance on acceptable forms of sukuk.
The new amendments specify five types of Sharia-compliant sukuk through which funds can transact, which include sukuk specifically for industrial and infrastructure projects such as (sukuk al istisna), and sukuk to fund agriculture and irrigation (sukuk al muzara’a and sukuk al musaqah).
They also cover less specific types including sukuk al salm, which involve a promise to purchase an asset in the future, and sukuk al istithmar, through which a fund can pool together shares or sukuk certificates and sell them on as securities.
Sukuk and green bonds are among several new financial instruments that are expected to be introduced to the Egyptian market, and were allowed for under the executive regulations to the Capital Markets Act issued in July 2018.
