First Published: 2013-04-01

 

Morsi refers controversial Islamic bonds law to Egypt's Al-Azhar

 

Law will let Egypt issue bonds compliant with Islamic principles regarding debt interest, allowing state to tap into new areas of finance.

 

Middle East Online

Sukuk law: Source of friction between Brotherhood and Salafists

CAIRO - Egypt’s Islamist President Mohamed Morsi Sunday referred a controversial draft law on Islamic bonds – sukuk – to Al-Azhar's Senior Scholars Authority, according to Egyptian state television.

The Salafi Nour Party has lobbied to refer the draft law to the Al-Azhar in application of the provisions of the Constitution.

A delegation from the Salafi Nour Party, the second largest party in the Shura Council, visited Grand Imam of Al-Azhar University, Ahmed El-Tayyeb, earlier in March to inform him of the party’s position.

Last week, Al-Azhar criticized the draft law, saying it gives the prime minister the power to form the authority that issues the bonds.

Hassan El Shafei, Al-Azhar's Senior Scholars Authority, called on the Shura Council in a meeting to discuss the amended law, to present the draft to Al-Azhar again to make sure that earlier remarks were taken into account.

In late February, Al-Azhar, Egypt's leading Islamic religious authority, said its clerics must be consulted on the proposed law, which would allow the government to issue Islamic bonds.

Al-Azhar's statement set it at odds with the Muslim Brotherhood, which drove the legislation through the Shura Council (the upper house of Egypt's parliament, currently endowed with legislative powers) on 19 March.

The law would let Egypt issue bonds compliant with Islamic principles regarding debt interest, allowing the state to tap into new areas of finance as the administration of President Morsi grapples with a widening budget deficit.

The proposed sukuk law has been a source of friction between the Brotherhood, whose Freedom and Justice Party (FJP) represents a majority in the Shura Council, and more hardline Islamist groups who say the draft legislation must first be approved by Al-Azhar scholars.

Morsi hails from the Muslim Brotherhood and was the head of the FJP before assuming the presidency.

 

US denies everything agreed on Iran nuclear deal

Iraqi forces liberate Tikrit after month-long battle

Arab coalition bombards rebels in Yemen's Aden

Gazans hope ICC will get justice for Israel’s 'war crimes'

Ancient Libyan treasures now in ISIS' sights

Israel to African migrants: Leave or face jail

Turkish authorities detain leftists

Egypt president urges Huthi rebels to 'back off'

Armed group takes prosecutor hostage in Istanbul

Palestine must wait for its day in court

UN rights chief expresses alarm on Yemen situation

Suicide blast in Iraq on bus carrying Iranian pilgrims

Arab coalition pounds Yemeni capital

Iraq forces ‘retake’ government HQ in Tikrit

Massive power cut causes chaos across Turkey

Kuwait emir pledges $500 million at Syria donors conference

Iran nuclear talks enter their final day

Assad does not see Russia, Iran interests in Syria

Confidence in Tunisia ability to rebound as museum reopens to public

Iran claims US drone killed two military advisers in Iraq

Court finds ex-Israel Premier Olmert guilty in corruption retrial

Deadly air strike hits camp for displaced people in northwest Yemen

Erdogan insists on visit to Iran despite war-of-words

UN chief in Iraq for talks with top officials

UN warns of horrifying Syria 'catastrophe'

Iran asks for explanation on Erdogan comments

One day to Iran nuclear talks deadline

Yemen ex-president's son sacked as ambassador to UAE

At time of war, cigar business launched in Syria

Yemen Huthi rebels bombed for fifth night

Saudi police officers wounded in Riyadh drive-by shooting

World leaders show solidarity with Tunisia in march against extremism

Guarded optimism as Iran nuclear talks close in on deal

Dialogue remains distant as Arabs vow to defeat Iran 'puppet' in Yemen

Egypt renews calls for creation of joint military force at Arab summit

Saudi ambassador to return to Sweden after diplomatic spat

Libya forces ‘withdraw’ from frontline bases near oil ports

Qaeda seizes 'majority' of Syria northwestern city of Idlib

Torturous Iran talks move into top gear in battle of wills

UN Security Council keeps Libya arms embargo in place

Saudi-led airstrikes target arms depots in Yemen capital

Death toll from hotel attack rises as fighting continues in Somalia

Oil prices fall after Yemen-inspired gains

Turkish parliament passes security bill after long debate

Turkey army chief of staff visits historic tomb inside Syria