Bloomberg News

Egypt’s Lawmakers Approve Sukuk for Islamic Bond Issues

March 19, 2013

Egyptian lawmakers approved the country’s first sukuk law today, paving the way for the government to take part in a market that hit a record $46 billion of debt sales last year.

The law allows the state and its related entities to issue Shariah-compliant debt locally and internationally. Capital gains and coupon payments will be exempt from tax, according to the state-run Middle East News Agency.

Egypt is looking for ways to secure foreign currency as a $4.8 billion loan from the International Monetary Fund remains stalled by political unrest. The country may raise as much as $1 billion by June from sale of its first Islamic bonds, Ahmed El- Naggar, adviser to Finance Minister El-Morsi El-Sayed Hegazi, said last month.

Today’s approval of the law is final, meaning it won’t be sent for further review by Al Azhar, Sunni Islam’s highest authority, state-run news website Ahram Gate reported.

To contact the reporters on this story: Tarek El-Tablawy in Cairo at teltablawy@bloomberg.net; Ahmed A. Namatalla in Cairo at anamatalla@bloomberg.net

To contact the editor responsible for this story: Andrew J. Barden at barden@bloomberg.net


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