RIYADH: Egypt’s Financial Regulatory Authority has issued the country’s first license to an institution engaged in Shariah-compliant financing of micro-enterprises.

The authority awarded the license to  Egyptian Microfinance Co., known as Maksab, according to a statement.

It is part of the FRA’s drive to achieve financial inclusion by diversifying financing solutions to boost the growth of micro-enterprises, FRA chairman Mohamed Farid, said. 

Following the issuance of the license to Maksab, the number of firms authorized to engage in micro-financing has reached 19. 

The North African country is moving toward diversifying its financing instruments to cover its debt, including preparing for Egypt’s sovereign sukuk, according to Alahram.

On Monday, Egypt’s Finance Minister Mohamed Maait said that the government plans to issue Islamic sukuk between $1.5 billion and $2 billion once the effects of the war in Ukraine on global markets ease.