Egypt’s parliament on Monday approved in principle a draft law submitted by the government regarding the issuance of a sovereign sukuk (bonds) law, the Youm7 website reported. Parliament member Bassem al-Khawasi however announced his rejection of the bill due to several concerns, including that segments of the beneficiaries of the sukuk may be foreigners whose affiliation is not guaranteed. He also warned of the risk of corruption since these form of bonds are unclear as to whether they are private or public. Parliament member Abdulaziz al-Nahhas announced on behalf of the al-Wafd Party its approval of the bill, stating that the project achieves its goal in attracting and pumping money. A parliamentary report of the joint committee from the Financial, Economic and Investment Affairs Committee and the Constitutional and Legislative Affairs Committee confirmed that sovereign sukuk as a financing instrument enjoy a large degree of acceptance in the today’s global financial markets.

Source: Egypt Independent May 17, 2021 13:52 UTC