Egypt will begin issuing sukuk, or sharia-compliant Islamic bonds, in the first half of 2022, the Egyptian finance ministry said in a statement on Tuesday.
The exact timing and size of the first offering is yet to be determined. Executive regulations for a new law allowing for issuance of sukuk are expected in the next three months, and the government is planning to form a state-owned company to manage sukuk issuance.
Returns on sukuk, which could be offered in local or foreign currency, would be taxed in the same way as Egyptian treasury bonds, the Egyptian finance ministry said according to Reuters.
Money raised through sukuk would be used to help fund the government’s social and economic development projects, the ministry added.
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