Islamic banking in Egypt will increase to EGP 1.14trn in 2024

The Islamic banking sector in Egypt reached EGP 1.14trn in 2024, representing roughly 5% of the full banking market, in response to Mohamed El-Beltagy, Chairperson of the Egyptian Islamic Finance Association (EIFA). This marks a rise of EGP 412bn in comparison with December 2023, reflecting a powerful 68% development price.

Egypt’s banking sector at present contains 15 banks licensed by the Central Bank of Egypt (CBE) to supply Islamic banking providers. Among them, 4 function completely beneath Islamic finance ideas: Faisal Islamic Bank of Egypt, Al Baraka Bank Egypt, Abu Dhabi Islamic Bank – Egypt (ADIB), and Kuwait Finance House, which just lately acquired Ahli United Bank. Additionally, 11 standard banks present Islamic banking providers by way of devoted branches.

The variety of Islamic banking branches in Egypt expanded to 311 in 2024, a rise of 51 branches in comparison with the earlier 12 months, serving practically 4 million clients. Some standard banks with Islamic finance licenses additionally supply Sharia-compliant providers throughout their whole department community. Nasser Social Bank, a authorities entity, continues to supply a spread of Islamic monetary merchandise in step with Sharia legislation.

ADIB maintained its place because the main Islamic financial institution in Egypt, with a complete enterprise quantity of EGP 258bn, capturing 24.5% of the market and attaining a 62% development price in comparison with 2023. Faisal Islamic Bank of Egypt adopted carefully in second place, recording EGP 240bn in enterprise quantity and a 23.6% market share. Banque Misr’s Islamic Transactions Unit ranked third, reaching EGP 195bn and holding 19% of the market, whereas Al Baraka Bank Egypt secured the fourth place with EGP 128bn and a 12.5% share. The United Bank rounded out the highest 5, reporting EGP 17bn in Islamic enterprise, representing 2% of the sector.

Islamic deposits in Egypt stood at EGP 738bn in December 2024, making up 7.3% of whole banking sector deposits. This displays a rise of EGP 290bn, a 65% development in comparison with the earlier 12 months. Meanwhile, Sharia-compliant financing reached EGP 807bn, accounting for six% of the full mortgage portfolio throughout all banks. This represents an increase of EGP 314bn and a 64% development price over 2023.

The Egyptian market continues to see the event of Islamic banking merchandise, with greater than 65 Sharia-compliant monetary devices accessible, together with financial savings plans, financing buildings, and funding merchandise. Despite this development, El-Beltagy emphasised the necessity for additional innovation in Islamic monetary options throughout particular person, company, public sector, and SME banking, in addition to in non-banking monetary providers.

In addition to banking, the Islamic monetary sector has seen an enlargement within the Sukuk market, with whole issuances reaching EGP 100bn in 2024. This contains each sovereign and company Sukuk, reflecting elevated investor curiosity in Sharia-compliant monetary devices. The business has additionally witnessed development in associated sectors, with 17 Islamic funding funds, seven Takaful (Islamic insurance coverage) firms, and two actual property financing companies working beneath Sharia ideas. Furthermore, microfinance and client finance firms are more and more incorporating Islamic monetary merchandise into their choices.

With the continuing enlargement of Islamic banking in Egypt, business leaders anticipate additional development and diversification, positioning the sector as a key driver of monetary inclusion and financial growth.