{"id":568065,"date":"2020-12-16T03:56:48","date_gmt":"2020-12-16T03:56:48","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2020\/12\/16\/parliament-pushes-sukuk-law-to-2021\/"},"modified":"2020-12-16T03:56:48","modified_gmt":"2020-12-16T03:56:48","slug":"parliament-pushes-sukuk-law-to-2021","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2020\/12\/16\/parliament-pushes-sukuk-law-to-2021\/","title":{"rendered":"Parliament pushes Sukuk law to 2021"},"content":{"rendered":"

<\/a> The bill that lays the groundwork for Egypt\u2019s first sovereign sukuk sale is<\/strong> being put on hold until the new class of MPs is seated <\/strong>in the House of Representatives next month. The current House of Representatives was expected to begin discussions yesterday<\/a> of the bill, but ultimately pushed it to the next legislative cycle after House Speaker Ali Abdel Aal called an end to Parliament\u2019s five-year term. The bill governs how the debt is securitized and traded, as well as the rights and responsibilities of sukuk holders. Egypt\u2019s maiden sovereign sukuk sale is expected after the bill clears the House general assembly in a final vote, is ratified by President Abdel Fattah El Sisi, and its executive regulations are published. The bill received cabinet approval last month<\/a>.<\/p>\n

What does the bill entail?<\/strong> The law would, if passed, allow the government to sell ijara, mudaraba, istisnaa, murabaha, and wekala sukuk in the local and international debt markets, according to a copy of the draft law seen by Enterprise. (Don\u2019t know your ijara from your murabaha? We have you covered on the sukuk types here<\/a>).<\/p>\n

While the bill would make sovereign sukuks a legal reality, it is the executive regulations that will lay the framework for sukuks.<\/strong> This includes establishing a regulatory oversight committee, clarifying how disputes between the government and sukuk holders would be handled, and setting up an association to protect the rights of investors. The regulations are expected to be out within three months of it being ratified by the president.<\/p>\n

APPROVED AT THE COMMITTEE LEVEL YESTERDAY-<\/strong> The charter of the Eastern Mediterranean Gas Forum. <\/strong>The House Energy Committee approved the document, which also appears to have been pushed to the next legislative cycle for general assembly sign-off, reports Al Mal<\/a>. Egypt and six of the forum\u2019s founding members, including Cyprus, Greece, and Italy, signed the charter earlier this year<\/a>. It officially establishes the Cairo-headquartered organization and outlines its mandate: to serve as a market platform for natgas producers, consumers, and transit countries in the region. Other items that received House committee-level approval include:<\/p>\n