Infrastructure Financing through Islamic
Finance in the Islamic Countries
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Case Study: Sudan Financial Services Company Ltd.67
The Sudan Financial Services Company Ltd. (SFSC) was established by the Central Bank of
Sudan (CBOS) and the Ministry of Finance and National Economy (MFNE) in 1998 with an
ownership of 99% and 1% of shares respectively. The vision of the SFSC is to work towards
achieving sustainable economic and social development through the provision of Islamic
financial services, stable and distinguished and satisfies the desires of the society. The
objectives of SFSC include the ‘promotion and diversification of financial services and financial
products in accordance with Shariah rules; design and execute a marketing policy that can
absorb the requirements of present as well as potential clients; promotion and training of staff
on recent developments regionally and internationally in the area of financial services and
related technology; and adoption of modern systems and technology and achieve the adequacy
and efficiency of the financial and administrative performance of the company with discipline
and speed.’
The key functions of SFSC are to provide ‘financial services related to management, dealing in
the shares and allocation owned by the government of the Sudan, its corporations and
institutions through the issue of sukuk in accordance with Shariah’. The SFSC has developed
sukuk and Government Investment Certificates (GICs) that have raised funds of more than SDG
1 billion that has helped finance development projects including infrastructure in the country.
The Shariah-compliant certificates issued by SFSC on behalf of different stakeholders is shown
in Table 4.5.4. As can be seen, during 2016, SFSC helped with the issuance of SDG 23.631
billion of certificates with SDG 20.559 billion of GMCs, SDG 2.242 billion of Shasha, and SDG
829 million of Sarh.
Table 4.5. 4: Issuance of Shariah Compliant Certificates by SFSC (2016) (SDG million and %)
Investors Government
Musharakah
Certificate
(GMCs)
SDG Million
% of
total
Government
Investment
Certificates
(GIC/Sarh)
SDG Million
% of
total
Sudan Company for
Electricity
Distribution Ijarah
Certificate (Shasha)
SDG Million
% of
total
CBOS 2,197.2 10.7% 327.3 39.5% 46.9 2.09%
Banks 9,805.5 47.7% 219.9 26.5% 1,352.1 60.29%
Companies
and Funds
6,363.1 30.9% 199.9 24.1% 416.7 18.58%
Public 2,193.8 10.7% 82.1 9.9% 0.4 0.02%
426.5 19.02%
Total 20,559.6 829.2 2,242.6
Source: Central Bank of Sudan Annual Report 2016.
4.5.6. Conclusion and Recommendations
Sudan has passed through a turbulent time with the adverse influence of the economic slump
caused by oil shocks following the separation of South Sudan. Infrastructure weaknesses in the
country have also been due to the lack of economic diversification during and following the oil
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