The Clap
President Abdel Fattah El Sisi has signed the Sovereign Sukuk Act into law on Wednesday, August 18, 2021.
The Deets
Discussions in the House of Representatives witnessed a state of controversy.
Supporters of the bill unanimously agreed that it aims to introduce new mechanisms to finance investment projects. While opposers fear that sovereign Sukuk would turn into a tool for raising funds without benefiting from them.
Why this matters
The law aims to create a new type of government security to finance the state’s general budget, as well as investment, economic, and development projects. The law would attract Egyptian and foreign investors who prefer Sharia-compliant investments.
