FILE PHOTO: Finance Minister Mohamed Maait speaks during a news conference in Cairo, Egypt July 5, 2018. REUTERS/Mohamed Abd El Ghany/File Photo
CAIRO, June 5 (MENA) – Finance Minister Mohamed Maait said Sunday that Egypt’s vision to diversify financial resources and tools had proven to be correct.
Addressing a debate held as part of the Islamic Development Bank (IsDB) annual meetings in the Red Sea resort city of Sharm el Sheikh earlier today, Maait said the government resorted to sovereign sukuk with the aim to attract new segments of Egyptian and foreign investors who would like to do business the Islamic way.
This, he added, is meant to reduce the cost of development finance through green sovereign sukuk and sustainable development sukuk that are used to secure the money needed to implement projects in accordance with an economic and social development plan outlined by the government.
It is also part of State efforts meant to encourage the demand for government securities and debt instruments that are issued in the local currency, as well as foreign currencies, the minister said.
He stressed the importance of exchanging expertise among countries that issue such sukuk.
The sukuk are floated on local and international markets in the form of paper or electronic certificates of equal value and for a certain time, Maait made it clear.
The assets should still be owned by the State under usufruct contracts and in line with the Islamic teachings, the minister explained.
Usufruct contracts should not exceed 30 years as stipulated by the Egyptian constitution, Maait said, adding, however, that they could be re-leased.