03 April 2013
President Mohamed Morsi has referred a controversial draft law on Islamic sukuk bonds to Al-Azhar for approval, with Egypt's highest Islamic authority saying that the new bonds must be approved by scholars, as stated in the country's new constitution.
The Shura Council, the upper house of parliament, which has a Muslim Brotherhood majority, approved the sukuk bond law last week, stating that it would not refer the bill to Al-Azhar for approval and sending it direct to president Morsi.
The law allows the state and its related entities to issue Sharia-compliant debt both locally and internationally.
The Ministry of Finance expects the first sukuk issue to take place within a couple of months and to yield $1 billion by June.
President Mohamed Morsi has referred a controversial draft law on Islamic sukuk bonds to Al-Azhar for approval, with Egypt's highest Islamic authority saying that the new bonds must be approved by scholars, as stated in the country's new constitution.
The Shura Council, the upper house of parliament, which has a Muslim Brotherhood majority, approved the sukuk bond law last week, stating that it would not refer the bill to Al-Azhar for approval and sending it direct to president Morsi.
The law allows the state and its related entities to issue Sharia-compliant debt both locally and internationally.
The Ministry of Finance expects the first sukuk issue to take place within a couple of months and to yield $1 billion by June.
© Al Ahram Weekly 2013
