The Financial Regulatory Authority (FRA) has given the green light to two new Islamic sukuk issuances worth a combined EGP 5.8 billion, as part of its broader strategy to diversify financing tools and support economic expansion.

The new approvals contribute to a cumulative total of EGP 25.7 billion in sukuk issued on Egypt’s capital market since the first Islamic-compliant sukuk launched in 2020.

The latest issuances include EGP 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 EGP 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 EGP 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.