Egypt's Islamic Research Complex has rejected the Islamic bonds (sukuks) draft law which was submitted by the country' finance ministry. The Complex said the refusal was due to the fact that the draft law did not take into consideration the basics of the shariah (Islamic law) in regard to bond ownership. The Complex further noted that it rejected the draft law as it involves multiple risks including the possibility of mortgaging some governmental assets. Meanwhile, a statement released by the economic committees of Freedom & Justice and El-Nour parties alongside the Egyptian Islamic Finance Association (EIFA), stated that they agree with what the Islamic Research Complex said in regard to the fact that the draft law lacks a number of shariah basics. It is worth noting that the cabinet has initially ratified the sukuk draft law. Consequently, the three economic committees said they urge the Shura Council (Upper House) to discuss the bill submitted by the FJP and El-Nour Party which takes account of all the shariah basics in issuing the sukuks. The economic committees further added in the statement that the proposed bill will emphasize Sukuks' developmental role in financing the private and public projects. The three committees concluded by saying: “As for the draft law submitted by the finance ministry, Sukuks shall be used only to fill the country's budget deficit."
