Tunisia's parliament passed a law late on Wednesday that will allow the state to issue Islamic bonds, or sukuk.

Finance Minister Elyess Fakhfakh told parliament that his ministry planned sometime in November or December to issue a sovereign sukuk to raise $700 million.

The government, led by moderate Islamists, is keen to develop Islamic finance, which was neglected for ideological reasons by the regime before the 2011 revolution. A Tunisian sukuk issue could potentially attract large amounts of Islamic-oriented funds from the wealthy Gulf.

The bill received 102 votes in favour in parliament. – Reuters