{"id":558630,"date":"2021-08-19T03:56:00","date_gmt":"2021-08-19T03:56:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2021\/08\/19\/sovereign-sukuk-act-signed-into-law\/"},"modified":"2021-08-19T03:56:00","modified_gmt":"2021-08-19T03:56:00","slug":"sovereign-sukuk-act-signed-into-law","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2021\/08\/19\/sovereign-sukuk-act-signed-into-law\/","title":{"rendered":"Sovereign Sukuk Act signed into law"},"content":{"rendered":"

<\/a> The long-awaited Sovereign Sukuk Act is now law of the land<\/strong>, paving the way for the issuance of our maiden sharia-compliant bonds on local and international debt markets. President Abdel Fattah El Sisi has signed off on the bill, according to the Official Gazette (pdf)<\/a>.<\/p>\n

The government is eager to get the ball rolling<\/strong>, with the Finance Ministry previously saying<\/a> that it would start working on its first issuance as soon as the legislation takes effect when the executive regulations of the bill, which received its final rubber stamp from the House in June<\/a>, are published within three months at most. The exact timing and size of the planned offering remains unknown.<\/p>\n

The bill defines the different types of sukuk<\/strong>, which include ijara, mudaraba, istisnaa, murabaha and wakala sukuk. It will also set a term limit of 30 years on all sovereign sukuk and establish the Sovereign Sukuk Company, a joint stock company to execute and manage sales. The act\u2019s executive regulations will cover setting up a regulatory oversight committee, clarifying how disputes between the government and sukuk holders should be handled, and will form an association to protect the rights of investors.<\/p>\n

But Enterprise, what are sukuk? <\/strong>We\u2019ve got you covered with this explainer<\/a>.<\/p>\n

Other laws greenlit by El Sisi:<\/strong><\/p>\n