EFSA, CBE Asked By Finance Ministry To Suggest Sukuk Rules

The Egyptian Ministry of Finance is close to finalizing the first draft of the executive regulation of sukuk law as the Ministry has sent official letters to all concerned bodies including the Central Bank of Egypt (CBE), Egyptian Financial Supervisory Authority (EFSA) and Egyptian Exchange to know their suggestions in this regard, said Ahmed El-Naggar, adviser to the Minister of Finance and the one responsible for sukuk.

Many of the public and private bodies will participate in drafting the executive regulation as CBE will set the governing rules to regulate issuances of sukuk by banks and determine the role of banks as promoters and underwriters of sukuk issued by public or private bodies in the future, he elaborated.

In addition, the Egyptian Exchange management and the Egyptian Capital Market Authority will be responsible for setting the rules of sukuk trading in the secondary market of EGX, he added, noting that there is a need to amend the Egyptian accounting rules.

The draft executive regulation will be published in the Ministry of Finance website to know the opinions of specialists, he added.