Ahmed Rostom: Egypt reduces financing costs through Islamic finance

By entering the international sukuk market, Egypt has not only attracted strong investor interest but also significantly lowered borrowing costs compared with traditional financial instruments, Ahmed Rostom, Egypt's Minister of Planning and Economic Development, said during panel discussions at the Islamic Development Bank (IsDB) Group's 51st Annual Meetings in Baku, Report informs.

Rostom noted that under Egypt's $5 billion international sovereign sukuk program, the country issued $1.5 billion in sukuk with a three‑year maturity. Demand for the issuance was nearly four times the offered amount, while financing costs were about 70 basis points lower than traditional borrowing tools – a success story for Egypt, he said.

According to him, these results have made broader use of sukuk a future priority for Egypt. The government is also working on a domestic sukuk issuance program to meet local demand, encouraging the private sector to tap corporate sukuk for financing.

The minister emphasized that integrating sukuk instruments and Islamic finance into Egypt's financial system, along with regulatory frameworks and standardization aligned with Sharia principles, played a key role. Clear communication of government priorities and strong macroeconomic indicators further boosted investor confidence, with Egypt's economy growing 5.1% in the first three quarters of the current fiscal year, he stated.

Egypt's fiscal year runs from July 1 to June 30.