الشركة المصرية المالية للتصكيك السيادي

Chairman’s Message

Chairman’s Message:

The Egyptian government has joined the sovereign sukuk market as one of the financing tools that can help attract more investments and reduce the burden on the state’s general budget, in addition to financing and developing many investment and service projects by investors and sovereign funds. Accordingly, Sovereign Sukuk Law No. (138) of 2021 was issued, pursuant to which sovereign sukuk are issued in their legal forms through the Egyptian Financial Company for Sovereign Sukuk, which is an Egyptian joint stock company wholly owned by the Ministry of Finance.

The Ministry of Finance, the sole founder of the company, had succeeded in establishing an international program for sovereign sukuk issuances worth 5 billion US dollars registered on the London Stock Exchange, where the first issuance was offered for 1.5 billion US dollars and the subscription value amounted to about 6.1 billion, which means that the subscription was covered by more than four times at a return rate of 10.875%. This issuance witnessed remarkable demand from various global financial markets. Dr. Mohamed Maait described the result of the issuance as successful despite the severe global economic and political conditions, and the high cost of financing as a result of a sharp inflationary wave; which sends a strong message of confidence from global financial markets and investors in the Egyptian economy and its future, and its ability to flexibly deal with internal and external challenges.

From this point, the Egyptian state has succeeded in its first experience of issuing sovereign sukuk, and it is expected that sukuk issuances will increase in the coming years, as sukuk have become a new financing artery for the Egyptian state.

Prof. Dr. Hussein Eissa

Chairman of Board of Directors