(AFP Photo)
By: Lamia Nabil
The Shura Council approved the sukuk draft law during its general session on Monday after deliberations and voting entered its fifth day.
The final draft law consists of the council’s economic and financial committee proposal, the government’s proposal and the Shura Council’s joint committee proposal.
The Shura Council modified 13 articles in the draft law.
The final report from the committee mentioned that there are some items that have been further developed and modified.
These include the addition of new articles to the draft law, some of which include new definitions of terms such as “sukuk manager” and “sharia”.
Another new article has been added allowing religious endowments, known as Waqf institutions, to issue sukuk.
The report also mentioned adding an article for public sector companies issuing sukuk, and to defer the authority for determining funds which may be issued for governmental sukuk to the Egyptian Cabinet.
The committee also limited the minimum issuance for sukuk to EGP 100m per certificate, or its equivalent in any foreign currency.
A grievances mechanism has also been developed to mediate between sukuk owners and administrative bodies through a committee which is answerable to the prime minister’s office.
Its adjudication will be enforceable and binding on administrative authorities after approval by the Egyptian Cabinet.
