The Shura Council’s financial and economic affairs committee has endorsed the Islamic Research Academy’s rejection of the Finance Ministry's proposal for Islamic bonds.

Al-Azhar’s body had rejected the bill during an urgent meeting late Tuesday held by Al-Azhar Grand Sheikh Ahmed al-Tayyeb, on the grounds that it "violates Islamic Sharia and endangers the state's sovereignty."

Academy member and former Grand Mufti Nasr Farid Wasel told Al-Masry Al-Youm that the bill would allow foreigners to own Islamic bonds and shares in local factories and businesses.

“We reject the bonds economically and in terms of Sharia. The issue is not clear for the people,” committee chairman Mohamed al-Fiqi said.

The committee had agreed during Wednesday’s session to consider a draft law on the Islamic bonds submitted to it by one of its members, Hussein Hamed Hassan.

“My draft applies to the public and private sectors,” Hassan said. “It is a summary of the bill suggested by the Freedom and Justice Party, the Nour Party, the Finance Ministry and the Islamic Finance Association.”

He further asserted that the bill does not permit selling state-owned assets, and said he had presented the prime minister a package of draft laws pertaining to the Central Bank and the Islamic banks for study.

Edited translation from Al-Masry Al-Youm