He Became Napoleon’S Genius Son [EN]: Chapter 203

203. Dreaming of the Grand Canal with Sukuk Bonds

In fact, the so-called [Egyptian Canal] was supposedly created as far back as 1848 BC.

“A canal? And one that connects sea to sea?”

“They say it was made 3,000 years ago.”

“Oh, Eugene. In the end, I’m the one who’s going to be in charge of this, not you, right? Good grief.”

The commander of the French expeditionary force, Hoche, threw up his hands in disbelief.

No matter how influential Eugene was, Hoche was the official highest authority in Egypt.

Furthermore, once construction begins, the canal is a major project that could take at least five years, or even ten years like in the original history.

So, for Hoche, who would inevitably be stuck with it, it was unbelievable.

But Eugene just shrugged with a brazen face.

Hoche, who had known Eugene since he was very young, eventually gave up with a click of his tongue.

He had seen too many times that once he made a decision, he would never back down.

Moreover, he was no longer just a child, but also the chief of staff of the expeditionary force and the general who killed Nelson.

“Okay, then what about the money? Just so you know, our Giza headquarters barely has enough to pay the soldiers’ salaries right now. We poured everything into Cairo.”

Eugene smiled and replied as if it were very simple.

“We will issue bonds.”

Kleber, who was listening from the side, puffed out his chubby cheeks.

“Are you out of your mind, Freischütz? I heard there’s no interest in Islam?”

“That doesn’t mean there’s no finance here, General Kleber. There are methods called Mudarabah and Musharakah.”

“Muda, what? What is that?”

Eugene looked back at the commander and division commanders looking at him and explained.

“Mudarabah is an investment method that exchanges capital and labor, and Musharakah is a joint venture.”

Of course, it’s not that simple.

Basically, Mudarabah is a kind of professional management system.

Conversely, Musharakah can be said to be a joint management system.

If a wealthy merchant provides money and an adventure merchant engages in long-distance trade, that’s Mudarabah. If they pool money together to buy and sell goods for large-scale grain transactions, that’s Musharakah.

All of them are methods of distributing profits if they occur, and they are traditional investment methods for Islamic merchants.

It seems no different from bank interest in that you make money by investing money.

Marceau, who was listening, also tilted his head.

“How is that different from interest?”

“It’s not fixed.”

“What?”

Eugene picked up the [Quran] on the table and said.

“Receiving fixed interest is a sin according to the scriptures. Distribution of profits is not a sin.”

So, receiving only profit for money without labor is a sin.

This is not just a medieval problem.

Even in modern history, there is a view of criminalizing financiers.

In fact, the same is true of France in 1797.

Hoche, who nodded with a face that seemed to understand, widened his eyes.

“Wait, so we build the Suez port, manage it, and control it. And we have to share the profits together?”

Everyone was surprised and opened their mouths wide at the words.

Isn’t that just giving it away for free?

But Eugene added to that.

“I’m saying we’re selling not just the port, but also the [canal]? Didn’t you see it in the Netherlands?”

“No, then why did we conquer Egypt? Is it for the prosperity and well-being of the Egyptian citizens?”

“Didn’t you know? The purpose of our expedition is England, Hoche.”

This time, Eugene pointed to a large world map hanging on the wall.

“Preventing England from monopolizing India. That is the alpha and omega of the Egyptian expedition. That’s why our navy fought while being sunk off the coast of Egypt.”

The map showed a huge sea route.

A route from England around Africa, past the Cape of Good Hope to India.

This route is so far that England cannot rely solely on the African route.

So, the route that was being used as a supplement was the trading post in Egypt.

At that moment, Eugene drew a line on the east side of Egypt.

-Swish.

A line connecting Damietta to Suez.

From the Italian peninsula, which France currently controls, to Damietta, and then across to Suez, it’s the Red Sea.

Crossing the Red Sea and passing the Arabian Sea, you will soon reach the Indian subcontinent.

A route that dramatically shortens the African route.

If this route is developed, the Egyptian route is no longer a supplementary route.

It transforms into the main route.

Hoche stared intently at the map and nodded.

“Yeah, that’s why half of our army has to return?”

Eugene was startled and shrugged.

“Well, yes.”

“Okay. Then how are you going to sell the bonds? Bonds without interest?”

“Sukuk.”

Eugene smiled again, holding the Quran.

“It will be a bond that bets on [rent], not interest.”

To create this bond, the authority of the Quran is needed.

***

In fact, the origin of the name Sukuk goes back to medieval Arabia.

“Sukuk? That originally meant a contract document or a payment document, right?”

The Grand Imam, Sharkawi, sat in the center of Al-Azhar Mosque and tilted his head.

He heard it through Gawahari’s translation, but he didn’t understand it well.

Originally, Sukuk meant a contract document.

However, in modern history, Sukuk has a completely different meaning.

It is a financial instrument that replaces interest in the Arab world, where interest does not exist.

Eugene nodded and handed over a document.

It is a certificate document with the signature line blank.

“That’s right. But from now on, it will be a new Islamic financial method, Grand Imam.”

“Hmm, let’s hear it. What are you trying to do? Also, why did you come to me?”

“Because this method requires the Imam’s certification that it complies with [Sharia] [Islamic law].”

Eugene presented a bond description translated into Arabic and said.

“This is an ethical bond, Imam.”

Sharkawi, who was looking at the description, raised his eyebrows.

First of all, it does not invest in ‘evil’ businesses, including gambling.

There can be no excessive compensation.

It does not give Islamic interest called [Riba] [interest forbidden by Islamic law].

It will only be used for literally ‘ethical’ businesses, and only jurists (Imams) can judge this ethicality.

The same content is on the back of the description.

With a dumbfounded expression, Sharkawi asked Eugene.

“Amazing. Can you really make a profit with these conditions?”

“It is possible.”

“How?”

Eugene lightly unfolded the map and explained.

“First, we will create a [company] based on the Suez port. A corporation.”

“A corporation?”

“Simply put, it is a company that issues certificates that share corporate ownership. The major shareholders of this company will be the French government, the military government, and the Boarne Bank. But.”

Eugene deliberately skipped over the most important right, [stock] [ownership shares].

Of course, even if he heard it, it would have been difficult for Sharkawi to understand the corporation.

But bonds are much easier to understand.

“Egyptians can also buy Sukuk bonds issued by this company.”

“So, you buy bonds and receive interest? That’s not allowed.”

“It’s not interest, Imam.”

Eugene pointed to the corner of the description.

“You will receive port facility rent and entrance fees. At a fixed amount, depending on the amount of the bond.”

Sharkawi widened his eyes and tilted his head.

“Wait, fixed profits are a crime prohibited by Sharia.”

“That’s not true. Isn’t the rent fixed? Does Islam not rent out houses or land?”

“Well, we do rent out camels.”

At that moment, Eugene shouted with shining eyes.

“The rental fee will all be fixed!”

For example, it becomes an earring if you hang it on your ear, and a nose ring if you hang it on your nose [it depends on how you interpret it].

However, modern Arab financiers also avoid [interest prohibition] in this way.

Profits from businesses where real estate or labor are secured are possible.

So, what kind of rental fee will this Sukuk receive?

It is the port facility usage fee.

Sharkawi, who was quietly looking at Eugene, finally nodded.

“That’s right, young general’s words.”

It’s a slightly unpleasant face.

But in the end, Sharkawi acknowledged Eugene’s efforts.

The efforts of a ‘Frank’ [European] boy who is trying to proceed with the project while respecting the Islamic method as much as possible.

Suddenly, Eugene smiled bitterly.

“You still see me as a boy.”

“I admit you are talented. But from our perspective, you are still a minor.”

“Why is that?”

In an instant, Sharkawi gave an absurd answer.

“You haven’t grown a beard.”

Eugene had to wonder for a moment if Gawahari’s translation was strange.

“Excuse me?”

“You probably haven’t married either? Surely, you haven’t crossed the line with that ‘fiancée’ who is always with you, even though you haven’t married? Jesus’ teachings also say to keep premarital purity.”

“No, wait. Grand Imam, Pauline is not my fiancée. And I have never done anything strange.”

Then Sharkawi snorted even more.

“But an old maid is hanging around? Ugh! Anyway, you are not an adult yet!”

In fact, this is because of a medieval Islamic custom that Eugene is not aware of.

A boy who has not grown a beard is a [homosexual] object in Islam.

Of course, it goes against the law, but it was also a ‘sin’ under the law committed by many influential Islamic figures.

So, from the perspective of a strict jurist, Sharkawi, he was suspicious.

Perhaps, is Eugene a homosexual object of Hoche?

Hoche is the commander and Eugene seems strangely influential, so it was a reasonable suspicion for Sharkawi.

But if you look closely, an old ‘virgin’, Pauline, is hanging around, so he was tilting his head.

Of course, Eugene just thought he looked young because he didn’t grow a beard.

The general and the Imam, who were misunderstanding each other, stared blankly at each other.

Suddenly, the Imam nodded first.

Anyway, he thought he was a boy who kept the law well because he didn’t do homosexuality or womanizing.

“But whether you are a child or an adult, you can speak the truth according to Allah’s will.”

“Yes? Oh, right.”

“This Sukuk is a certificate that complies with the law. I, Grand Imam Sharkawi, certify it.”

Sharkawi took a pen and signed it in one stroke.

-Swish, swish, swish!

In an instant, Eugene hurriedly took the certificate and sparkled his eyes.

“Thank you. Now, I can sell the [canal].”

“Huh? What do you mean? I thought you were building a port?”

“I will build it. However, connecting the Suez port and the Mediterranean Sea will not only be by land.”

Suddenly, Eugene’s eyes flashed.

“A grand canal will be built there.”

Simultaneous construction of roads and canals.

This is the justification for Eugene to sell the bonds.

***

In the pre-modern era, when there were no highways, mass transportation was only possible by [sea].

“Come and buy Sukuk bonds! These are bonds guaranteed by Grand Imam Sharkawi to be in accordance with the law!”

Coptic scribes, including Jacob Hanna, set up stalls in the Khalilili market.

Many merchants flocked to give money and buy bonds.

Eugene didn’t know, but among them was Al-Kuwari, who was angry that his daughter had been taken away.

Ippolito clicked his tongue as he watched the bonds sell out in an instant.

First of all, even though the minimum amount starts at 100 dinars, or 100 gold coins, they sell out in an instant.

Egypt had been known to have an annual tax revenue of only 50 million francs.

But looking at the bonds being sold now, it seemed like they would soon fill 400 million francs.

“Wow, they’re really selling like hotcakes? Were there so many rich people in Cairo?”

“It’s the difference between income and assets, Ippolito.”

“What do you mean?”

Eugene said, looking at the merchants who looked shabby at first glance.

“Egypt’s income level is lower than France right now. But they haven’t fought a war like us, and they haven’t had any reason to fight for a long time other than power struggles.”

“Oh, really? Well, it is surrounded by desert.”

“It means that income has been peacefully accumulated as assets for at least 400 years since the Turkish conquest.”

The sight of dazzling gold coming out of the hands of that shabby merchant is truly unique.

“The assets that have not been able to find a place to invest until now are now about to come to the market.”

Of course, if only 100 dinar bonds are sold, it will take a long time to reach the target capital.

However, countless bonds worth 1,000 dinars and 10,000 dinars were also being sold.

The merchants here in Cairo are convinced of the project they will participate in through bond investment, the [Grand Canal].

This will definitely make money.

In fact, anyone can think about it just by calculating the sea route.

However, in the original history, France actually built the canal but was taken away by England.

To avoid repeating that history, there is a problem that must be won militarily.

Just as Eugene was considering that point, Ippolito suddenly asked again.

“Then, that’s all good, but where do we get the profit? Do we have to get money from the French government?”

“What are you talking about? The profit is accumulating there.”

“Huh? Sukuk? Isn’t that all accumulating in the Suez port and, well, the Grand Canal?”

Eugene slyly picked up a Sukuk and showed it to Ippolito.

“Take a good look at this. Who is guaranteeing and brokering this bond.”

Ippolito was about to sneer that he was teasing him because the document was written in Arabic.

-〈Boarne Italian Bank〉

The name of the broker is written very clearly.

It is clearly the banking business that Eugene created in Genoa.

But why is this coming out here?

“Oh, oh, oh?”

“5% of the bond amount. Our bank brokerage fee.”

“Wait, was the target amount 400 million francs? Then!”

Eugene smiled and turned around.

“20 million francs. With this, we have recovered half of our investment, right?”

After that, the voices of merchants shouting busily echoed.

“10 10,000 dinar bills! Our whole family will buy it!”

Now the day has come for the joint project between France and Egypt, the Suez Canal, to begin.