Pyramid selling by the Nile

The Egyptian government has taken measures to regulate the Islamic banking industry after a number of crises have been encountered by financial institutions. Prime Minister Atef Sedki has called for legislation mandating that investment houses become limited companies that guarantee rights to shareholders, that annual reports be produced, and that reserves be deposited in a central fund. One incident that led to the government action was the failure of Al-Rayan Islamic investment house's move to create a joint-stock subsidiary. This failure was due to incomplete offers of public information. The new regulations are considered crucial by the author, in light of known impropriety previously undertaken by unregulated banks. A particular example of improper dealing is pyramid-selling, known to have occurred at such institution in the past.