Issuing sovereign bonds as a financing tool is not a new thing in the world. Rather, it is a tool that exists in more than seventy countries around the world, including Britain, Malaysia, the Emirates, Morocco, and Egypt. The mechanism for issuing sovereign sukuks targets a new segment represented by Arab and foreign investors, especially from the Middle East, North Africa and Asia, who are reluctant to invest their money in the currently known securities and financial instruments of the government, and prefer transactions that are consistent with the principles of Islamic Sharia. The motivation for issuing sovereign sukuks is represented by the state’s desire to create sources of financing, increase the dollar proceeds of the Egyptian economy, attract new investments in all sectors, and enter new financial markets, to ultimately reach negotiations with the International Monetary Fund on a lending program that includes a new financing component. The state wants to direct the proceeds of the issuance towards financing the development projects it is working on, in order to stimulate economic growth and provide job opportunities for its citizens. Thus, sovereign sukuks represent a new door to providing the necessary financing to the state in order to implement development and investment projects on the one hand, and attract a new segment of investors on the other hand. Sovereign Sukuk Law No. 138 of 2021 and Resolution No. 1574 of 2022 issuing its executive regulations represent the legislative umbrella for the introduction of this new type of government securities in Egypt, and also sets the regulatory rules that allow the state to issue them in light of them in accordance with what the legislator decided.