Regulatory Alerts2012-01-01
Islamic Finance Sukuk Law No. 30 of 2012
The Jordan Securities Commission, alongside the Council of Ministers and Fatwa Council, enacted Law No. 30 of 2012 to establish a comprehensive regulatory framework for issuing, registering, and trading Sharia-compliant Islamic finance sukuk. The legislation mandates a Central Sharia Supervisory Commission to verify ongoing religious compliance, permits issuance through special purpose companies under recognized Islamic contracts, and requires Board-approved prospectuses detailing profit-sharing mechanisms and project feasibility. It further grants comprehensive tax and fee exemptions to special purpose companies and sukuk transactions, ensures independent project financing with audited accounts, and formally annuls the 1981 Muqarada Bond Law to modernize Jordan’s Islamic capital markets.