Companies in Egypt can now issue multiple sukuk with single approval from the Financial Regulatory Authority (FRA), according to the recent amendments to the Capital Market Law (CML) by the Egyptian Cabinet.

The amendments enable companies to issue new sukuk programs including multiple issues over three years with a single approval required from the FRA for the whole program, not for every issue, according to a statement by the FRA on Tuesday.

The new version of the CML waived the credit rating requirement for the issuance of sukuk for either the issuer or the beneficiary of the sukuk.

Furthermore, the amendments provide for creating sustainable development investment funds, which are novel products in the Egyptian market.

The new funds will invest in green projects and projects that cater to environmental and societal concerns.

A sukuk is an Islamic financial certificate, similar to a bond in Western finance, that complies with Islamic religious law commonly known as Sharia.

In February 2023, Egypt sold its first US-denominated sovereign bonds, Islamic sukuk, with a total value of $1.5 billion. The subscription on these bonds, valued at $6.1 billion, covered fourfold its face value. The action came for the sake of diversifying budget financing tools. 

The recent amendments to the CML came as part of a broader effort to encourage entrepreneurship and improve the business investment climate.