CAIRO - 2 October 2023: In a significant development for Egypt's capital markets, the country's Finance Minister, Mohamed Maait, hailed the success of Egypt's first sovereign Sukuk issuance as a testament to the confidence of investors in the Egyptian economy.
Maait's remarks were delivered by his advisor, Mohamed Hegazi, during the inaugural regional conference of the AlBaraka Forum for Islamic Economy held on Sunday.
During his speech, Maait highlighted that the volume of Sukuk transactions had surpassed an impressive two trillion dollars, based on conservative international estimates. He further emphasized the steady annual growth rate of Sukuk, which exceeded 30 percent.
Egypt achieved a major milestone in February with the sale of its inaugural sovereign Islamic sukuk, raising $1.5 billion. The subscription value for the offering reached approximately $6.1 billion, indicating a coverage rate of over four times the initial amount.
The issuance of the sukuk was facilitated through The Egyptian Financial Company for Sovereign Taskeek. Notably, asset management funds, retirement trusts, banks, insurance companies, and investment funds emerged as the primary investors in these bonds.
Maait's recent participation in the Story of a Homeland (Hekayet Watan) conference shed light on the positive impact of economic reforms, confirming a decline in the deficit from 12.5 percent to 6 percent during the fiscal year ending on June 30.
The finance minister underscored that this level is the lowest Egypt has witnessed in the past 43 years, further reinforcing the positive trajectory of the country's economic stability.
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