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(Mar 08, 2013) On February 27, 2013, the Egyptian Council of Ministers approved a draft law allowing the issuance by the government of Islamic bonds, known as "sukuk." The intent behind the draft law was to help close the gap in the national budget deficit. It is also supposed to increase the foreign currency national reserves. The draft law is considered the first piece of legislation in The Egyptian Ministers of Council Approves the Islamic Bonds Draft Law [in Arabic], AL ARABIYAH, (Feb. 27, 2013).)

Sukuk is an Islamic financing system through which bonds are offered to fund a public asset or good. Such bonds offer undivided shares of ownership of tangible assets, and under Islamic law these bonds cannot earn interest. (Rodney Wilson, Islamic Capital Markets: The Role of Sukuk, QFINANCE (last visited Mar. 5, 2013).)

Author: George Sadek More by this author
Topic: Economics and Public Finance More on this topic
Jurisdiction: Egypt More about this jurisdiction

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Last updated: 03/08/2013