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Thursday, 28 April 2022

Cabinet approves sovereign sukuk exec regs

Sovereign Sukuk Act regs are finally ready: The Madbouly government has approved the executive regulations of the Sovereign Sukuk Act “after taking into account observations by some ministries,” according to a statement from the cabinet following its weekly meeting. The bill was signed into law last year.

The government was tight-lipped on the contents of the regs, which the Finance Ministry drafted with the help of the Financial Regulatory Authority and Al Azhar. The statement didn’t disclose when the regulations could be published, which needs to happen for the law to come into effect.

When the regs are released, the path will be clear for the country’s c. USD 2 bn maiden issuance. Before war in Europe threw plans everywhere up in the air, Finance Minister Mohamed Maait had hoped to take the issuance to market before the end of June 2022. The sharia-compliant bonds could be issued on both the local and international stock exchanges. The issuance is part of the ministry's strategy to reduce government debt and shift towards longer-term borrowing.

ALSO APPROVED BY CABINET:

  • EV charging station company: Steps related to establishing the state’s planned EV charging firm, which will manage EV charging stations around the country, including in Greater Cairo, Alexandria and Sharm El Sheikh.
  • Exemption of airport fees for foreign airliners extended: Extending foreign operators’ exemption from airport fees until the end of October. The exemption was set to expire at the end of April.
  • A draft EUR 777 mn funding agreement between the International Cooperation Ministry and the French government to finance 55 new trains and refurbish warehouse equipment for Cairo Metro Line 1.
  • A new authority to manage recovered funds: A draft bill establishing a new authority tasked with managing recovered and seized funds, replacing three governmental bodies carrying similar duties.

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