Egypt expresses 'deep dissatisfaction' to Netherlands over embassy attack    Global pressure mounts as Gaza fighting intensifies and death toll surges    Egypt, India's BDR Group in talks to establish biologics, cancer drug facility    AUC graduates first cohort of film industry business certificate    At TICAD, Egypt's education minister signs pacts with Casio, SAPIX    Egypt holds special importance for our investments across diverse sectors: Japanese minister    Cairo, Tokyo sign LOI to expand educational cooperation, support for persons with disabilities    Madbouly invites Japanese firms to establish industrial zone in SCZONE    Egypt to tighten waste rules, cut rice straw fees to curb pollution    Al-Sisi meets Qatar PM, Bahrain security adviser to discuss Gaza crisis, regional stability    Indian tourist arrivals to Egypt jump 18.8% in H1-2025: ministry data    Egyptian pound down vs. US dollar at Monday's close – CBE    Egypt's FM, Palestinian PM visit Rafah crossing to review Gaza aid    Egypt prepares unified stance ahead of COP30 in Brazil    Egypt recovers collection of ancient artefacts from Netherlands    Egypt harvests 315,000 cubic metres of rainwater in Sinai as part of flash flood protection measures    Egypt, Namibia explore closer pharmaceutical cooperation    Fitch Ratings: ASEAN Islamic finance set to surpass $1t by 2026-end    Renowned Egyptian novelist Sonallah Ibrahim dies at 88    Egyptian, Ugandan Presidents open business forum to boost trade    Al-Sisi says any party thinking Egypt will neglect water rights is 'completely mistaken'    Egypt's Sisi warns against unilateral Nile measures, reaffirms Egypt's water security stance    Egypt's Sisi, Uganda's Museveni discuss boosting ties    Egypt, Huawei explore healthcare digital transformation cooperation    Egypt's Sisi, Sudan's Idris discuss strategic ties, stability    Egypt to inaugurate Grand Egyptian Museum on 1 November    Greco-Roman rock-cut tombs unearthed in Egypt's Aswan    Egypt reveals heritage e-training portal    Sisi launches new support initiative for families of war, terrorism victims    Egypt expands e-ticketing to 110 heritage sites, adds self-service kiosks at Saqqara    Palm Hills Squash Open debuts with 48 international stars, $250,000 prize pool    On Sport to broadcast Pan Arab Golf Championship for Juniors and Ladies in Egypt    Golf Festival in Cairo to mark Arab Golf Federation's 50th anniversary    Germany among EU's priciest labour markets – official data    Paris Olympic gold '24 medals hit record value    A minute of silence for Egyptian sports    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Sukuk law remains under deliberation
Published in Daily News Egypt on 02 - 10 - 2012

The three leading Islamist parties will hold a workshop next week to discuss a draft legal framework to regulate the issue of sukuk (Islamic Shari'a compliant bonds).
Ahmed Al-Naggar, member of the economic committee at the Freedom and Justice Party (FJP), said his party would meet with Al-Nour and Al-Wassat parties “to come up with a common vision about what the sukuk legal framework should be." Non-Islamist parties would be welcome to offer their vision too he said.
“Forging a legal framework for issuing sukuk requires review; at the top is the current Capital Market Law, the executive bylaws and procedures and regulations, which the Egyptian Financial Supervisory Authority (EFSA) is in charge of," Al-Naggar said. This required coordination with various parties including government, investment banks and political parties, he added.
The current Capital Market Law No. 95 of 1992 mentions sukuk. However, experts say the detail is insufficient. In June 2011, the EFSA provisionally approved the amendment of the Capital Market Law to allow for the introduction of sukuk to the market.
The dissolution of the Islamist-dominated parliament in June created a legislative predicament that halted the discussion over Capital Market Law amendments. However, the Head of the economic committee of Al-Nour party, Tarek Shaalan, said discussions had moved from parliament to parties' headquarters.
Al-Naggar said the involved Islamist parties are committed to complete coordination with the government, EFSA, investment banks, as well as other non-Islamist parties in order to come up with a temporary legal framework for sukuk.
Interest in Shari'a compliant debt tools such as sukuk is high considering the current financial crisis. Government officials stressed the need for diversifying debt tools to attract new investors, especially those who are wary of interest rates attached to conventional debt tools.
Initially, the idea of introducing sukuk to the Egyptian market was proposed by FJP members of parliament, who held a majority in the now dissolved-parliament.
The Muslim Brotherhood member who articulated the FJP's economic plan, Ashraf Badr El-Din, argued that introducing sukuk would encourage a greater segment of society to inject their money into the market since they have reservations over interest rates attached to conventional debt notes, the Muslim Brotherhood's official website, Ikhwanonline, quoted Badr El-Din.
Proponents of sukuk believe also that introducing Shari'a compliant debt tools will attract investors from the Persian Gulf and Southeast Asia, as well as European banks.
Against the backdrop of the global financial crisis, non-conventional fiscal tools such as sukuk have experienced increased demand. Ernst & Young's Global Islamic Banking of Excellence (GIBE) forecast an exponential increase in the demand for Islamic sukuk to reach $900 billion by 2017.


Clic here to read the story from its source.