Elements of activating the role of sovereign sukuk in financing infrastructure projects in Egypt in light of case studies from the Malaysian experience

This study aimed to clarify the role of sovereign sukuk in financing the infrastructure investments gap in the Arab Republic of Egypt, and the elements required to activate this role, in the light of 5 successful case studies from the Malaysian experience. The descriptive – analytical approach has been applied since it fits most the nature of this study either in tackling its theoretical aspects or in analyzing the data and statistics of funding infrastructure projects in Egypt, or in analyzing act no. 138 of 2021 promulgating the sovereign instruments. The study has unveiled that infrastructure is considered as one of the most crucial strengthening constituents of economic life. It has revealed also that sovereign sukuk is an important source and a suitable financial tool for financing infrastructure investments. The research has disclosed as well that the Malysia experiment in this regard is ceaselessly effective and boundlessly fruitful. The study has recommended that the Egyptian government should benefit from Malaysia’s experience in activating sovereign sukuk as a substitute of funding infrastructure projects. The Egyptian government should prepare a supportive environment for the launching of this new instrument by providing a competitive tax treatment to guarantee the success of the use of sovereign sukuk in financing infrastructure projects. The government should also pay more attention to prepare real economic and social feasibility studies for infrastructure projects financed through sovereign sukuk. Finally, the government must work on creating an advanced market for the trading of local sovereign sukuk.