Regulatory Alerts2019-01-01
Decision No. 47 of 2019 of the Authority's Board of Directors Regarding the Rules for Forming and Membership Requirements of Sharia Supervisory Boards for Sukuk Issuances Compliant with Islamic Law
The Egyptian Financial Regulatory Authority issued Decision No. 47 of 2019 to establish a nine-member Central Sharia Supervisory Board responsible for approving, supervising, and ensuring the Sharia compliance of Sukuk issuances aligned with Islamic law. The decision mandates specific membership qualifications, outlines the Board's authority to draft standard contracts, issue binding fatwas, review quarterly compliance reports, and adjudicate jurisprudential disputes, while granting it inspection powers and a technical secretariat. It further regulates the formation, appointment, remuneration, and operational procedures of subsidiary Sharia boards within non-banking financial institutions, requiring all Sharia rulings to be formally documented and retained for at least five years.