Mohamed El-Mahdy, member of Al-Azhar’s Senior Scholars Council, stated that some terms motioned in the draft sukuk law need clarification such as the difference between the assets publicly owned by the state and the assets privately owned by the state as well as the meaning of ownership of objects need to be determined more specifically so as not to be confused with the ownership of benefits. In addition, there must be some regulations imposed on sukuk issued for foreign investors, he noted.
On the sidelines of “Sukuk between Theory and Practice” conference held in Al-Azhar Conference Center, El-Mahdy affirmed that the draft sukuk law shall be discussed by economic and Islamic banking experts as well as Islamic Sharia scholars.
Dr. Mohamed Gomaa, dean of Faculty of Islamic Studies, stated that Al-Azhar University play an effective role in discussing the draft law.
There are still some questions shall be addressed by the law makers such as how the contract parties will do if the asset is destroyed, how long the term of sukuk will last and which projects will be open for subscription to Egyptians and foreigners and which will be to Egyptians only.
Al-Azhar University conducts scientific studies about sukuk law as a Sharia-compliant financing instrument, he added.