Egypt denies intention to issue sovereign sukuk to mortgage assets in exchange for borrowing

Egypt denies intention to issue sovereign sukuk to mortgage assets in exchange for borrowing

CAIRO - 22 June 2021: The Egyptian Ministry of Finance denied the state's intention to issue sovereign sukuk as a tool to mortgage state-owned assets in return for borrowing. 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, in a way that contributes to achieving financial, economic and development goals, and providing the necessary financial allocations for investment projects in line with the state's efforts to enhance aspects of spending on improving the standard of living of citizens. It added that the sukuk also comes in line with Islamic Sharia principles, without mortgaging or selling any of the state-owned assets, according to the media center of the Council of Ministers. The ministry added that sovereign sukuk are issued on the basis of state-owned assets privately owned, by selling the right to use these assets without the right of neck, or by leasing them, provided that it is prohibited to seize or take executive measures on those assets on the basis of which the sukuk are issued, to nullify any action or conduct contrary to that, and to impose a criminal penalty on