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Al-Azhar rejects draft law on Islamic bonds
Egypt’s core Islamic institution contests a bill on Islamic bonds, saying it is not compliant with Sharia law that prohibits usury
Ahram Online, Wednesday 2 Jan 2013
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Ahmed Al-Tayeb
Grand Sheikh of Al-Azhar, the highest Islammic Sunni institution, Ahmed Al-Tayeb (Photo: AP)

Members of the Islamic Research Academy, one of Al-Azhar's affliated institutes, say they reject a bill on Islamic bonds (sukuk) recently approved by Egypt’s Cabinet.

The institute declared that it rejects the bill because “it is not compliant with Sharia rules and threatens the state sovereignty.”

The 50 members of the Islamic Research Academy also contest articles authorising the presidency and Egypt’s Cabinet to deal in Egyptian assets and lands without constraints. They say this right should be given to parliament as the representatives of the Egyptian people.

The draft law the Islamic scholars object to allows the government to issue Islamic sovereign bonds in Egyptian pounds or foreign currencies through public offerings. The bonds represent shares in assets, utilities or services, or properties in given projects.

Because the traditional Western interest-paying bond structure is not permissible under Sharia law, the issuer of a sukuk sells an investor the certificate, who then rents it back to the issuer for a pre-determined rental fee. The issuer of the sukuk also makes a contractual promise to buy it back at a future date at par value.





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Matoaka
04-01-2013 10:59pm
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Adapt or Die
That is the old saying, adapt or die! You cannot live in the dark ages in a modern world, the world will overrun you. You must find it within yourself to adapt to a world that is changing all around you every second and go with, all the while keeping what you hold dear and believe in alive within your home and in your heart. A government cannot survive through religion, religion must survive within the person. Politics and religion do not mix, never have, never will.
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11



howard
04-01-2013 03:27pm
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a way around this...
as a non Islam looking into Eqypt one suggestion; is it consistent with Sharia to change the concept of bonds and interest to one of stocks and equity ? that might provide a market for investment in the nation and please Allah.
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10



Sufi
04-01-2013 01:10pm
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MB and Salafist Islam
MB and Salafist Islam is just to make people disabled physically by chopping hands and feet. They will deal with IMF, world bank and other institutions to borrow on interest. They are meant to fail as their ideology is flawed and their slogan is false as their Islam.
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Sumner Stone
04-01-2013 02:35am
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Hypocrisy- this is interest no matter how you structure it.
The Qu'ran prohibits charging interest- the paying of a money charge for the use of money. This is considered immoral! To create a way of accomplishing a premium for loaning money and calling it something else does not fool Allah. It is haram!
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8



Jalal Edeen
03-01-2013 06:35pm
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Appeal for Protection from Salafies
As humble member of the Islamic Mysticim in Egypt, we ask the Azhar to protect us from Salfies who wants to destroy our mosques with our Sidies grave. We are peaceful muslims and proud of our Sidies Tantawi, Desoukki, Runi, Mursi, Hadad. We are not violent and need protection. (translated by Jalal Edeen.)
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7



Khofoo Abdullah, Giza
03-01-2013 03:54pm
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Non-Islamic Behvior
How come FJP/BH ask Godless China for loan? Last events show that majority of Egyptians lack understanding of Islam. Shame on our Islamic institutions to allow those extremists to hijack Islam.
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ashraf sabrin
03-01-2013 01:16pm
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kudos to the ira
The Islamic Research Academy has chosen to Be an independent body; not beholden to the non Experts of the Presidents Cabinet.
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Aladdin, egypt
03-01-2013 08:38am
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Discovering Islam
The uprising and temergence of "Islamists" have shoen how ignorant Egyptians about their releiligion. Azhar should develp a master plan to educate Egyptians about their merciful Islam. It is the great thift of Islam by the mofsideen fe Al-Erd. Allah AKber. It is my jihad El-nafs to expose the khawarij.
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Mona Abdel-Aziz, Alex
02-01-2013 09:47pm
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Allah Mandate
Allah (SWT) never mandate BH & Salfi gov. to govern us. It is blasmophy to do that. Allah Kabeer Ya Beni Misr.
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Ameer Abdullah, Domiat
02-01-2013 09:43pm
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Breaks my Heart
Other nations and people are building their countries and inventing better ways to improve llife. We still stuck to bannal arguments that is meanig=ngless. we need projects to create jobs. Allah Akber.
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