Egypt looks to Islamic bond market for foreign investment boost
Egypt’s sovereign bonds bill paves the way for Egypt to join the Islamic finance market, allowing foreign investment in national projects such as the Suez Canal and Aswan Dam, which affects Egyptian national security.
CAIRO — The Egyptian parliament gave June 6 initial approval for a bill on the issuance of Sharia-compliant sovereign bonds (sukuk) submitted by the Cabinet.
Speaking at a press conference June 8, Finance Minister Mohamed Maait said that the bill would allow Egypt to join the Islamic finance market where sukuk issuance amounts to $2.7 trillion.
Maait noted that the ministry began communicating with the various ministries regarding projects that would serve as guarantees for future sukuks. He said that a team from the ministry will communicate with international investment banks to identify potential markets for issuing bond offerings and issue price.
Maait continued that joining the Islamic finance market would attract new Egyptian and foreign investors based on the principles of Sharia in both local and foreign currencies.
