Egypt’s parliament approves sovereign sukuk law

Egypt’s parliament approved on Sunday a draft law to issue sovereign sukuk that aimed at up the state’s financial performance and covering the budget deficit.

The new law will allow the Egyptian Ministry of Finance to issue sukuk to raise capital necessary for spending on economic and investment projects targeted by the state budget and development plan.

The sukuk, which is sharia-compliant bonds that are dominantly used in several Islamic countries, will be Egypt’s fourth source of finance, along with treasury bills, domestic loans, and credit facilities, and foreign loans, and credit facilities.