During the conference held for practical applications of Sukuk, the Minister Of Finance stated:

- Providing the draft of the executive regulation of Sukuk law for

community debate upon completion.

- Reducing the credit rating shall have no effect on Sukuk underwriting processes, as it shall only affect bonds

- Deputy to the head of the Islamic Bank : we will participate in promoting The Egyptian Sukuk ,and the bank shall contribute in its subscription

- Sukuk market jumped globally from $ 34 billion in 2009 to reach $140 billion last year

- Hussein Hamed Hassan: the financial system that depends on interest is

the reason behind the global crises.

The Ministry of Finance Dr. Fayyad Abd –el Moniem asserted that reducing Egypt's credit rating shall have no effect on Sukuk underwriting processes, whereas increasing or reducing credit rating only affect the bonds as it related to credit, while Sukuk are considered as financial instrument linked to assets ownership whether they are already exist or they will be created , therefore the retreat in the credit rating does not affect the assets because assets protect Sukuk holders.

He also said that the Ministry of Finance through its affiliate  Sukuk unit are keen on selecting projects with distinct economic and social returns of Sukuk underwriting,  noting that many of these projects are still under study for establishing silos for storing grain, railway line connecting Ain Shams to 10^th of Ramadan and Badr city in addition to many other projects that we shall select the best.

The Minister of Finance ensures that immediately upon completion of the draft of the executive regulation of Sukuk law, we shall put it to community debate, as well as avail it on the ministry’s website providing it to all segments of society to participate in discussions and to express their opinions regarding  preparation of the draft executive regulation , as the Shoura Council’s closing session witnessed consensus of all the council members thereon.

The previous mentioned took place during the Minister was opening the Sukuk practical applications conference which organized by the Ministry of Finance and the Islamic Development Bank Group. Deputy to the head of the IDB group, Dr Abd Al Aziz Al Hanaei , the Constitutional jurist and a member of the Shoura Council, Dr Hussein Hamed Hassan, the executive director of the Islamic Bank, Mr. Zeinhom Zahran ,the advisor to the Minister of Finance for Islamic financing instruments , Mr. Ahmed Al Nagar , in addition to 300 participants representing 82 entity, including ministries , governorates, as well as representatives from the banking sector and control institutions.

Concerning the Islamic Development Bank’s role, the Minister said that the bank is always the international financial institution that is keen on activating economic growth, through the continuing initiatives for providing assistance and support to expand investment and development areas in Egypt . The Minister also praised the efforts exerted by the IDB president, Dr. Ahmed Mohammed Ali, in supporting  social and economic development in Egypt.

He also declared that the Egyptian economy witnessed repeated economic and financial crises, the matter that ensures the existence of a main deficiency in the economic structure. This structure is setting up on basis impeding progress, development and prosperity of the community. After 25^th January revolution, the Ministry of Finance offered a distinct vision concerning the coordination and integration between the economic tools and mechanisms for combining the employment of the economic incentives and the values embodiment in the financial and economic transactions, besides the sought to provide equity ,efficiency, and the optimal use of economic resources.

He also added that this vision adopted financial and banking mechanisms due to their vital role in facing the repeated financial and economic crises , as he noted that the Sukuk instrument  presents in the last decades a distinct experience in many countries as it contributes through it's various funding forms based on the rules and regulations of funding in light of financial contracts in Islamic Sharia, these forms are based on correctly re-operating  capital including benefiting from the  work, capital, and risks in a balanced equation.

He also said that Sukuk is the financial instrument that is being used according to multiple investment forms, diversified funding methods, cover different areas, satisfy the needs of many institutions, these forms and mechanisms represent a real chance and a good financial instrument to set up and expand development programs, and the financial as well as the monetary integration as a basic step for achieving the desired economic development to our country Egypt.

 He also explained in addition to the abovementioned, that investment systems and methodologies include  through Sukuk the ability to deal efficiently with deferent risks.

There are many types of subscriptions and funding forms such as;

lease , profitability, future contracts, manufacturing and other financial contracts, which provide effective ways for expanding and diversify production activities as well as provide the resources and facilities necessary for expansion in economic exchanges at the internal and external level. Sukuk also characterized by, in addition to its ability to mitigate risk through transferring investment opportunities to strong financing structure production projects. 

He also added that the Ministry of Finance supports all bodies and institutions including : Ministries, Governorates, Government Organizations, Banks and Associations, by providing all expertise and assistance to accelerate the completions of plans and projects through Sukuk instrument and to make the necessary steps, in order to serve Egypt, relieve the burdens of society and contribute to achieve its welfare.

The deputy to the chairman of Islamic Bank Group Dr. Abdul Azeez Al-Hanai confirmed that the Islamic Bank continued support for Egypt and development projects, announcing that the bank will contribute in the Egyptian Sukuk  and shall subscribe in it . The Bank also provides technical support for offering process, whether in pricing or in studying the projects targeted to be established by Sukuk in order to finance them.

He agreed with the Minister of Finance that Sukuk shall not be affected by ups and downs credit rating processes. They are basically ownership instruments.

He also noted that Sukuk market has grown globally in the last three years significantly, as the Sukuk offering jumped from $34 billion in 2009 to reach more than $140 billion in 2012, the largest proportion of sovereign Sukuk, which accounted 78% of the international Sukuk offering.

He said that the Islamic Bank desires that Egypt’s entry to the Sukuk market is important addition to the financial industry, in terms of quality, and size of offering. Egypt is a pioneer in several areas especially Islamic Economic and Finance.

As for the controversy raised  by Sukuk law, Dr. Abdul Azeez Al-Hanai confirmed that this is healthy and useful for the progress of the and we are in need for review and correction for more development and innovation.

Regarding the workshop, he said that the organizing team was keen to attract experts from various core areas relevant to Sukuk , especially legitimate rules, regulations, legal aspects, practical experiences and structuring, design and development of Sukuk and other aspects of Sukuk.

The member of Shura Council- Dr. / Hussein Hamed Hassan said that the interest based funding system has been certainly proven that the cause of the world financial crises have brought some capitalist countries to serious financial problems.

He added that the Islamic Finance proved to be one of the most significant solutions of finance development projects without cost, especially Sukuk as its holders create and develop the project by their money and the government’s role is to manage the project, if  the project realizes  profits, Sukuk holders  shall be entitled to get an agreed ratio of these profits and the manager of the project shall be entitled to get the rest, and if the project realizes loss, the project manager shall not be responsible for, Sukuk holders shall bear it.

He pointed out that the risk  ratio shall not  exceed 1% and the most important, that the project offered for Sukuk shall have insurance. Through Takaful Insurance companies full insurance protection shall be provided for Sukuk holders.

He also confirmed that the funding forms and the Islamic financing instruments are able to attract funding from inside and outside , it shall be provided to a specific project or activity, for which a feasibility study shall be prepared to identify the expected profits and Sukuk holders proportion of such profits which means necessarily a rational allocation of resources. No finance shall be given except for production investment projects, constituting the Sukuk holders acceptable share.