bokraSharia compliance of Bokra Sukuk
The committee's ruling approving the Bokra Sukuk structure as free of riba, with profit distribution based on genuine partnership.
Supervised by Egypt's Financial Regulatory Authority
Sharia Committee
An independent committee of senior scholars that reviews Bokra's products and issues rulings on their Sharia compliance.
Dr. Abbas ShomanChairman, Sub-Sharia CommitteeSecretary-General of the Council of Senior Scholars and General Supervisor of Fatwa at Al-Azhar, and a member of the FRA's Supreme Central Sharia Committee. A former Professor of Sharia at Al-Azhar University, he has served on many Sharia boards of Islamic banks and sukuk issuances.
Dr. Magdy AshourMember, Sub-Sharia CommitteeAn Azhari scholar and former advisor to Egypt's Grand Mufti, specialised in Islamic finance jurisprudence and fatwa. He reviews and certifies the Sharia compliance of Bokra's products.
Dr. Mohamed El-BeltagyExecutive Member, Sub-Sharia CommitteeChairman of the Egyptian Society for Islamic Finance and an expert in Islamic banking in Egypt and the Arab world. A member of fatwa committees at several major banks, rapporteur of the sovereign sukuk supervision committee at the Ministry of Finance, and an accredited member on the FRA's list of Sharia boards.
Sharia fatwas
Committee-approved
Fatwas issued by the Sharia Committee
Buying & storing gold (El-Shakmagya)
Controls for buying and storing gold electronically in a way that satisfies the Sharia requirement of possession (qabd).
FAQ
Sharia-compliance FAQ
Are Bokra's products genuinely Sharia-compliant, and does each product have its own approval?
Bokra's main products are structured, in both design and contracts, to comply with Islamic Sharia. Approval status by product:
- Shakmageya (Bokra Precious Metals Fund): explicit Sharia approval from the Sharia Committee, and approved by the Financial Regulatory Authority.
- Bokra Sukuk (Aman Sukuk, first issuance, EGP 3 billion): approved by Bokra's Sharia Committee and by the FRA's Central Sharia Committee.
- Savings account and Pension card: preliminary approval of the concept and broad outline. The detailed memorandum is being finalized for the committee's final approval.
The signed documents are available on the Official Sharia Publications page.
How is Sukuk income different from riba (interest)?
Sukuk income comes from sharing in real assets and projects and bearing their risk, not fixed interest on a loan, which is what makes it Sharia-compliant.
Where is my money actually invested?
- Shakmageya: the money buys 24-karat gold, held with the officially licensed custodian in Egypt, EgyCash for Cash Solutions, which is owned by the Central Bank of Egypt.
- Bokra Sukuk (Aman): the money finances Aman for Projects across small and medium enterprises, micro-enterprises, and auto financing. These are real financing and trade activities based on Sharia-compliant contracts.
Is my capital or return guaranteed? Is the return fixed or variable?
Neither capital nor profit is guaranteed. Sharia doesn't permit stipulating a guarantee of either in investment contracts. The Sukuk follow a mudaraba contract: the investor bears the investment risk, and the investment manager is liable only in cases of misconduct or negligence. The return is variable and depends on the performance of the financed project and on the investment manager's diligence in protecting Sukuk holders' rights.
If capital isn't guaranteed, what does the Sukuk's fixed nominal value mean?
The nominal value is the accounting form of the certificate. The amount actually returned at maturity depends fully on investment results, profit or loss, as set out in the issuance terms and the information memorandum. The Sharia rule is that profit is shared as agreed and loss falls on capital, so the company doesn't commit to returning full capital if an actual loss occurs, except in cases of its own misconduct or negligence. The information memorandum, approved by the FRA and the Sharia Committee, confirms this.
Why are treasury bills mentioned in the contracts?
When Sharia-compliant fixed-income instruments are unavailable, temporary surplus liquidity may be placed, as a last resort and at the minimum necessary, in low-risk cash vehicles. This keeps the liquidity available until it's used for its intended investment.
How were funds handled before the Sukuk received their trading code?
Investing funds before the trading code was issued was a temporary, transitional operational stage. Bokra Portfolio and Fund Management has since resolved this by launching its Sharia-compliant money market fund, which received the Sharia Committee's final approval.
Why do some products use commercial rather than takaful insurance?
Egypt's takaful market has limited capacity, so companies use commercial insurance to secure adequate credit coverage that protects Sukuk holders' assets against loss and default. The Sharia Committee considers this acceptable to protect Sukuk holders' interests, treating it as a case of genuine need, and requires Aman to give takaful companies priority at renewal.
Is the gold in El-Shakmagya really owned by me?
Yes, you own real, stored and insured gold, and the Sharia requirement of possession (qabd) is met per controls approved by the committee.
Who sits on the Sharia Committee?
The committee comprises leading scholars specialised in Islamic financial jurisprudence, listed above on this page.
- Dr. Abbas Shoman: Chairman, Sub-Sharia Committee
- Dr. Magdy Ashour: Member, Sub-Sharia Committee
- Dr. Mohamed El-Beltagy: Executive Member, Sub-Sharia Committee
What standards does the committee rely on?
The Sharia standards agreed by Al-Azhar, applied by all members of Bokra's Sharia Committee and the FRA's Central Sharia Committee.
Is Bokra subject to official supervision?
Yes, Bokra operates under the Financial Regulatory Authority (licence 761), alongside independent Sharia oversight.
Have a Sharia question or suggestion?
We welcome your questions and input on the Sharia compliance of our products.