During his speech, Maait highlighted that the volume of Sukuk transactions had surpassed an impressive two trillion dollars, based on conservative international estimates
Islamic banking accounts for approximately 5% of the overall Egyptian banking sector, according to the EIFA’s latest data
Madbouli made the remarks during a meeting he chaired of the Cabinet at its headquarters in the New Administrative Capital.
The value of the issuance hit $1.5 billion, and the subscription on these sukuk amounted to about $6.1 billion.
Bloomberg reported earlier that the government is seeking to raise up to $1.5 billion.
This issuance represents the fourth issue to finance the project of the beneficiary company (Contact Finance Company) (the beneficiary company / Mudarib).
Maait said the government resorted to sovereign sukuk with the aim to attract new segments of Egyptian and foreign investors who would like to do business the Islamic way.
This conference came as a result of implementing President Sisi's directives, especially since the crisis is expected to last longer than expected, according to Prime Minister Mostafa Madbouli.
Earlier, the Egyptian Finance Minister, Mohamed Maait, confirmed that Egypt is preparing to issue the first sovereign sukuk offering during the second half of the current fiscal year.
The ministry is currently implementing some legal provisions related to capital gains tax, although this tax is not the main reason behind the decline in the number of companies listed on the stock exchange, she noted.
He pointed out that the timing, size and type of offering will be determined later.
The second article of the draft law specifies aspects of using sovereign sukuk to finance investment, economic and development projects included in the economic and social development plan of the state’s general budget.
The ministry said in a statement on Tuesday that the goal of issuing sovereign sukuk is to create a new financing tool to diversify the investor base.
Maait said the aim of issuing Sukuks is to finance the state general budget, as well as investment and development projects included in the budget.
Senators praised the bill, stressing that it brings unconventional investments, complies with Islamic law, and preserves the state's right to ownership of assets and the rights of investors.
As part of the project, Sudanese cows will be slaughtered, packed and transported to different governorates under the supervision of the two ministries.
The cabinet approved a new sovereign sukuk bill early November, amining to widen Egypt’s investors base.
It will open the door for Egypt to enter the world of Islamic finance, whose volume of transactions reached at the end of last June about $ 2.7 trillion.
Ma’it said that the ministry is studying developing three new types of bonds for investors in the next 2 years to diversify the state’s sources to control the deficit bill.
Moody's Investors Service had expected Egypt to become one of the Islamic sukuk issuers during 2019.