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Wednesday, 19 May 2021

IDA exec regs are the law of the land + sovereign sukuk inch closer to legislative clearance

The wait is over for industrial investors: The executive regulations to the law regulating the Industrial Development Authority (IDA) come into effect today after being published yesterday in the Official Gazette (pdf), the Trade and Industry Ministry said in a statement. The ministry approved the regulations earlier this month, setting rules for non-industrial developments within industrial zones as well as for how the IDA will price its services. This is in addition to the mechanism that controls rent, sale, and usufruct prices for lands in industrial zones.

Our sovereign sukuk are inching closer to legislative clearance: The House Economic Committee gave its final sign-off to the Sovereign Sukuk Act yesterday, after the Senate approved the law earlier this week, Masrawy reports. The bill sets the framework that will regulate Egypt’s sovereign sukuk issuances, including governing how the sharia-compliant debt is securitized and traded.

Didn’t the House Economic Committee already give its blessing? The committee had approved in February amendments to the Act, which included laying out the terms and processes for sukuk issuances, as well as setting up an oversight committee to assess how the sukuk are priced and where the funding will go. The act has since made its way through the Senate and the Council of State (Maglis El Dawla) for further review and suggestions. Yesterday’s approval is on the final text of the act.

What’s next: The House of Representatives’ general assembly needs to give the act its final rubber stamp before being sent to President Abdel Fattah El Sisi for ratification. The executive regulations to the law are expected to be issued within three months after that.

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