CAIRO – 22 June 2021: The Egyptian Ministry of Finance denied the state's intention to issue sovereign sukuk as a tool to mortgage state-owned assets in return for borrowing. It added that the sukuk also comes in line with Islamic Sharia principles, without mortgaging or selling any of the state-owned assets, according to the media center of the Council of Ministers. The ministry added that sovereign sukuk are issued on the basis of state-owned assets privately owned, by selling the right to use these assets without the right of neck, or by leasing them, provided that it is prohibited to seize or take executive measures on those assets on the basis of which the sukuk are issued, to nullify any action or conduct contrary to that, and to impose a criminal penalty on violators. It indicated that the fixed and movable assets owned by the state will be determined as "private property" on the basis of which the sukuk are issued, so that there will be a mechanism to assess the right to use those assets on the basis of which the sukuk are issued or in return for leasing them for this purpose. Its issuance, circulation and redemption are subject to the controls, rules and procedures that are compatible with the principles of Islamic Sharia.

Source: Egypt Today June 22, 2021 12:33 UTC