Egypt Issues Warning of Potential Risks Associated with Islamic Financial Instruments

Member of the Board of Trustees of the National Dialogue in Egypt, Gauda Abdel-Khalek, warned against what he called the dangers of Islamic tools.

Gauda Abdel-Khalek spoke about the new type of sukuk: “We don’t realize how dangerous Islamic sukuk are” during a meeting of the Committee on Public Debt, Budget Deficit and Financial Reform, dedicated to reforming public financial management and working on budget inclusiveness, rationalization of spending and increasing revenues.

Abdel-Khalek added that these tools should be considered at the National Dialogue sessions.

At the same meeting, Abd al-Fattah al-Jabali, Assistant General Rapporteur for the Economic Axis, responded to Goud’s request that the current procedures and timelines for approving the state’s general budget should be reviewed after discussion.

Al-Jabali said that the 2014 constitution approved the best practice when it was available on March 31 of each year, making it available for discussion for three months. He also pointed out that budget transparency reports evaluate countries that give three months for discussions as the best.

He added: “If Parliament does not take advantage of this period, then it is up to Parliament itself” as he proposed the creation of a budget council to mediate between the government and parliament in discussing the budget in its detailed form.

Source: Al-Shoruk

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