The Financial Regulatory Authority (FRA) has authorized two new issuances of Islamic sukuk, collectively valued at LE 5.8 billion. This move is part of the regulator’s continued efforts to expand financing options and stimulate economic growth.

With these latest approvals, the total value of sukuk issued in Egypt's capital market has now reached LE 25.7 billion—a milestone achieved since the country introduced Sharia-compliant sukuk in 2020.

The latest issuances include LE 3 billion in Mudaraba sukuk—the first offering by Bokra for Securitization (formerly Rawasi for Securitization). The funds will be directed to finance a project by Aman for Microfinance, acting as the project’s beneficiary and operator (mudarib).

The second issuance, led by Al Ahly Securitization Company, involves Musharaka sukuk and is intended to fund a development initiative by Bab Misr for Urban Development, a subsidiary of Hassan Allam Construction Group.

Both offerings will be conducted through private placements, targeting financial institutions and high-net-worth investors.

These sukuk structures—Mudaraba and Musharaka—are permitted under Egypt’s Capital Market Law No. 95 of 1992 and are frequently used by companies to finance growth projects. Returns vary based on the structure and risk-sharing mechanism of each issuance.

FRA Chairman Dr. Mohamed Farid noted that Sharia-compliant sukuk approvals for 2025 alone have already reached LE 12.8 billion, matching the total approved between 2020 and the end of 2024. This surge brings the total sukuk volume in Egypt’s capital market to LE 25.7 billion.

Farid emphasized that several additional issuances are currently under review, reflecting heightened market interest and the Authority’s commitment to simplifying issuance procedures.

He added that the FRA continues to strengthen investor protection while fostering financial market stability and promoting non-banking financial services.

The approvals signal Egypt’s growing role as a regional hub for Islamic finance, with sukuk serving as a vital tool for both private sector expansion and diversified investment offerings.