الهيئة العامة للرقابة المالية

Dr. Mohamed Farid – FRA Chairman:

• Since the beginning of 2025, the Authority has given the green light for the issuance of sukuk with a total value of EGP 8 billion.
• The total value of sukuk approved since 2020 has reached EGP 7 billion.
• The Authority is actively diversifying financing solutions to empower economic entities across various productive sectors, facilitating their expansion and growth while simultaneously offering a wider array of investment opportunities.

Financial Regulatory Authority (FRA) has greenlit the issuance of two Sharia-compliant Sukuk valued EGP 5.8 billion. This decision underscores FRA’s commitment to provide a spectrum of financing and investment avenues tailored to meet the evolving needs of both individuals and corporations seeking capital for future growth initiatives.

The approved sukuk include a 3-billion-pound mudaraba (profit-sharing) issuance by local fintech startup Bokra, targeting the expansion of Aman for Microfinance, and a musharaka (partnership) sukuk by Al Ahly Sukuk Company, aimed at financing Bab Misr for Urban Development, a subsidiary of Hassan Allam Construction Group.

These Sukuk will be exclusively available through a private placement targeting financial institutions and high-net-worth individuals. Notably, both Mudarabah and Musharakah structures represent established categories of Sukuk as defined within Egypt’s Capital Market Law No. 95 of 1992. These instruments are among the types of Sukuk stipulated in the Capital Market Law No. 95 of 1992, which companies utilize to finance their expansions. The return on these Sukuk is variable, depending on the structure and performance of each issuance.

Dr. Mohamed Farid pointed out that the total value of Sukuk already introduced into the capital market amounts to EGP 25.7 billion, with the Authority currently evaluating additional issuances expected in the near future.

FRA Chairman disclosed that the value of approved Sukuk issuances since the beginning of 2025 has already reached EGP 12.8 billion. This figure matches the total value of Sukuk approved between the initial Sharia-compliant issuance in 2020 and the end of 2024, also standing at EGP 12.8 billion. Consequently, the aggregate value of Sharia-compliant Sukuk issuances now totals EGP 25.7 billion. This notable progress underscores the Authority’s proactive and streamlined approach to facilitate Sukuk issuances, ensuring a balance of rights for all participants while fostering financial stability within both the markets and non-banking financial institutions.