Dr. Ahmed Shoukry, a prominent banking and economic expert, clarified the distinction between securitization and sukuk issuance. Securitization involves converting debt into tradable financial instruments, often backed by a pool of loans or receivables. It is commonly used by banks to manage risk and improve liquidity. On the other hand, sukuk issuance is rooted in Islamic finance and represents ownership in tangible assets or projects. Sukuk holders share in the profits and risks associated with the underlying assets. Dr. Shoukry highlighted that sukuk are governed by Sharia principles, ensuring compliance with ethical financial practices. This explanation comes amid Egypt’s efforts to issue sovereign sukuk to reduce public debt and fund development projects.
— new from العالم اليوم
