Regulatory rules for issuing sovereign sukuks and oversight mechanisms In light of the provisions of Law No. 138 of 2021 and its executive regulations .

The issuance of sovereign sukuk as a financing tool is not something new in the world. Rather, it is a tool that exists in more than seventy countries around the world, including Britain, Malaysia, the UAE, Morocco and Egypt. The mechanism for issuing sovereign sukuk targets a new segment represented by Arab and foreign investors, especially from the Middle East, North Africa and Asia, who are reluctant to invest their money in currently known securities, such as government securities and financial instruments, and prefer transactions that are consistent with the principles of Islamic law. The motive for issuing sovereign sukuk is the state’s desire to create sources of financing, increase the dollar revenues of the Egyptian economy, attract new investments in all sectors. The Sovereign Sukuk Law No. 138 of 2021 and Resolution No. 1574 of 2022 issuing its executive regulations represent the legislative umbrella for the introduction of this new type of government securities in Egypt, and it also sets the regulatory rules that allow the state to issue them in its light, according to what the legislator decided.