Egypt's Financial Regulatory Authority (FRA) has on Monday greenlit two Shariah-compliant sukuk issuances worth a combined 5.8 billion Egyptian pounds. The move marks a significant step in the country's push to deepen its Islamic finance sector and provide new investment channels. The sukuk include a 3-billion-pound mudaraba (profit-sharing) issuance by local fintech startup Bokra, targeting the expansion of Aman for Microfinance, and a musharaka (partnership) sukuk by Al Ahly Sukuk Company, aimed at financing Bab Misr for Urban Development, a subsidiary of Hassan Allam Construction Group. "These issuances are part of Egypt's broader strategy to diversify its financing tools and attract investment to key sectors," FRA Chairman Mohamed Farid said in a statement. The move will help fund future expansions, particularly in the non-banking financial services sector. Since the start of 2025, the FRA has approved a total of 12.8 billion pounds in sukuk issuances, bringing the overall tally to 25.7 billion pounds since Egypt's first Shariah-compliant sukuk launch in 2020. Farid emphasised the FRA's efforts to streamline procedures and ensure the stability of non-banking financial markets, which have seen growing investor interest. "Egypt is positioning itself as a regional hub for Islamic finance, with sukuk playing a crucial role in attracting both domestic and foreign capital," Farid added. With sukuk becoming an increasingly popular tool for financing, Egypt is betting on these instruments to fuel the growth of its private sector and boost its financial markets, even amid global economic uncertainty. Attribution: Amwal Al Ghad English
