Sukuk To Provide US$ 15 Bln Annually: FJP

Ahmed El Naggar, a member of the economic committee of the Freedom and Justice Party and the person in charge of the sukuk (Islamic bonds) issue within the party, stated that the news circulated about hypothecating state’s sovereign assets such as Suez Canal is “groundless”. Sukuk provides from US$ 10 billion to US$ 15 billion annually, he noted.

Those who say that the government will hypothecate the country’s sovereign assets either have no idea about sukuk or are anti-Islamists. Sukuk have proved a success in many countries, prompting many countries such as Germany and Britain keen to offer sukuk.

Commenting on Mohamed Gouda’s statements that sukuk will bring the country US$ 200 billion, El Naggar said that the economic expert Hussein Hamed Hassan’s studies affirmed such statements as sukuk can bring the country such value but after several years.

FJP wants to amend the sukuk law in the Shura Council to be a unified law that regulates all kinds of sukuk whether governmental, private or joint.

Sukuk will not be alternative of conventional government debt instruments which are used by the government to finance the budget deficit.