A number of GCC governments, including those in the UAE and Saudi Arabia, have set ambitious clean energy and energy efficiency targets. As the fastest growing region in the world, the GCC’s population is expected to grow more than 53 million by 2020. Substantial amounts of investments will be required to finance the clean energy and energy efficient projects necessary to meet the needs of the future population.

Capital markets allow investors a low-cost alternative

Green bonds, which tie

Following widespread debate and commentary on the first draft of the Egyptian sukuk legislation (the sukuk legislation), the Egyptian cabinet has approved a second draft of the sukuk legislation to be presented to the Egyptian Shura Council for parliamentary discussion. The legislation is a significant change in legal direction for Egypt that has only embraced Islamic finance to a limited degree to date.

The first draft of the sukuk legislation was subject to widespread criticism, including that the sukuk legislation

Sipchem’s recent Mudaraba Sukuk is notable as an economic success and also for its structure.  The financing represented a great addition to the tool kit available to corporate treasurers in Saudi Arabia.

A Sukuk financing typically requires that:

  • An issuer has unencumbered tangible assets available;
  • The assets are Shari’ah compliant (i.e not related to alcohol, pork, gambling etc.);
  • Direct/indirect ownership of those assets vest with the seller/issuer; and
  • The estimated value of the assets is greater than or equal to