{"id":566576,"date":"2021-06-28T13:54:18","date_gmt":"2021-06-28T13:54:18","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2021\/06\/28\/one-giant-leap-for-our-sovereign-sukuk-sale\/"},"modified":"2021-06-28T13:54:18","modified_gmt":"2021-06-28T13:54:18","slug":"one-giant-leap-for-our-sovereign-sukuk-sale","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2021\/06\/28\/one-giant-leap-for-our-sovereign-sukuk-sale\/","title":{"rendered":"One giant leap for our sovereign sukuk sale..."},"content":{"rendered":"

<\/a> The long-awaited Sovereign Sukuk Act will soon be the law of the land,<\/strong> after <\/strong>the House of Representatives gave it a final vote in a plenary session today<\/strong>, Youm7<\/a> reports. The act \u2014 which puts in place the legal framework under which the government will issue sharia-compliant debt on international and local markets \u2014 now needs to be ratified and its executive regulations published. This is expected to happen within three months at most<\/a>.<\/p>\n

A refresher on the framework: <\/strong>It will allow the government to sell ijara, mudaraba, istisnaa, murabaha, and wakala sukuk in local and international debt markets, according to a copy of the draft law seen by Enterprise in December<\/a>. It will also set a term limit of 30 years on all sovereign sukuk and establish<\/a> 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

When will we see a sovereign sukuk issuance, and what\u2019s the expected size? <\/strong>The sign off paves the way for the government to come out with its maiden sukuk issuance, but the timing and size has yet to be confirmed. Finance Minister Mohamed Maait said earlier this month<\/a> that the government\u2019s inaugural sukuk sale could be to the tune of USD 2 bn and hit the market at the start of the state\u2019s fiscal year in July. Maait, however, was careful to point out that while the ministry is aiming to quickly pull the trigger on a USD 2 bn issuance, the exact size and timing is yet to be finalized.<\/p>\n

<\/a> ALSO FROM THE HOUSE- SCC given powers over Int\u2019l arbitration:<\/strong> Amendments giving the Supreme Constitutional Court (SCC) authority over international arbitration rulings were handed a final vote<\/a> by MPs during today\u2019s plenary session. The changes give the court power to override international court and arbitration rulings that it believes affect national and economic security, as well as give the prime minister the right to request the SCC consider whether a given verdict by an international court or arbitration body breaches the Egyptian constitution. We had more on the changes in this morning\u2019s EnterpriseAM<\/a>.<\/p>\n

Other legislation approved today include:<\/strong><\/p>\n