Wednesday 9 January 2013

Islamic sukuk and the new constitution Asharq Alawsat Newspaper (English)

No sooner had the Egyptian constitution been adopted, than it was made clear that modifying it was a real possibility. This is probably why even before the constitutional referendum began, President Mohamed Mursi decided to have the opposition and experts prepare a list of the articles they believed to be defective and in need of revision by the legislature, then put to another referendum.
Sukuk or Islamic bonds are issued by the Egyptian Finance Ministry, which according to Article 4 of the Constitution needs to consult al-Azhar University, which in turn would consult Article 2, which states that the principles of Islamic law are the main source of legislation. These ‘principles’ are defined in Article 219 as those in line with authorized Islamic schools of thought and jurisprudence. Based on all this, and after consulting the Supreme Council for Islamic Affairs and senior economic experts from al-Azhar, the final decision was that these bonds do not comply with Islamic law.
Islamic sukuk and the new constitution Asharq Alawsat Newspaper (English)

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