Dr. Mohammed Omran, FRA’s Chairman issued a regulatory decision that obliges Sukuk Companies and beneficiaries of Sukuk proceeds to abide by the Egyptian Accounting Standards upon preparing and submitting the financial statements. He added that financial statements shall be revised according to the Egyptian Auditing Standards and limited examination and guided by the Islamic standards issued by the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) in a manner that is consistent with the Egyptian Accounting Standards.
FRA’s Chairman stated that “The Egyptian Accounting Standards focus primarily on the quality, integrity and accuracy of the financial statements. He noted that unifying Accounting policies and treatment for companies operating in non-banking financial services provides greater disclosure and transparency to the users of financial statements and enabling them to take the economic and financial decisions on a sound basis.
FRA’s BOD has issued decision no. 176 of 2018 to define the requirements for incorporating and licensing Sukuk companies which are offering Sukuk for the first time in Egypt and using its proceeds to finance beneficiaries which implement projects in various fields. The said decision is considered as a procedure to put the amendments to the Executive Regulations of the Capital Market Law – issued by the end of November 2018 – into effect.