In 2024, Egypt’s Islamic banking sector grew by 68%, reaching LE 1.14 trillion, or 5% of the total market. Islamic deposits totaled LE 738 billion, and Sharia-compliant financing reached LE 807 billion. The sector added over 65 financial products and increased branch numbers significantly, with ADIB leading the market.
In 2024, Egypt’s Islamic banking sector achieved remarkable growth, reaching a total value of LE 1.14 trillion. This figure represents approximately 5 percent of the overall banking market, reflecting an impressive increase of LE 412 billion, or 68 percent, since December 2023. Mohamed El-Beltagy, Chairperson of the Egyptian Islamic Finance Association, reported these significant advancements.
By December 2024, Islamic deposits in Egypt amounted to LE 738 billion, accounting for 7.3 percent of all banking sector deposits. This represented a growth of LE 290 billion, demonstrating a 65 percent increase from the previous year. Furthermore, Sharia-compliant financing achieved LE 807 billion, which made up 6 percent of the total loans in the banking system, marking a 64 percent increase over 2023.
The Egyptian market has seen a continuous enhancement of Islamic banking products, with over 65 available Sharia-compliant financial instruments, including savings plans and financing structures. Despite this growth, El-Beltagy noted the necessity for further innovation in Islamic financial solutions across various sectors, including individual, corporate, and small to medium enterprises (SME) banking.
By the end of 2024, the Central Bank of Egypt had licensed 15 banks to provide Sharia-compliant services, with four of these banks specializing exclusively in Islamic finance. These include Faisal Islamic Bank of Egypt, Al Baraka Bank Egypt, Abu Dhabi Islamic Bank – Egypt (ADIB), and Kuwait Finance House. Additionally, eleven conventional banks offered Islamic banking services through dedicated branches, increasing accessibility for customers.
The number of Islamic banking branches in Egypt reached 311, an increase of 51 branches from the previous year, serving nearly 4 million customers. Nasser Social Bank, a state-owned institution, continued to provide various Sharia-compliant financial products, while ADIB emerged as the sector leader, achieving LE 258 billion in business volume and a market share of 24.5 percent with a growth rate of 62 percent compared to 2023.
Following closely was Faisal Islamic Bank of Egypt, which reported LE 240 billion in business volume and 23.6 percent market share. Banque Misr’s Islamic Transactions Unit ranked third with LE 195 billion, capturing 19 percent of the market, while Al Baraka Bank Egypt held fourth place with LE 128 billion and a 12.5 percent share. The United Bank completed the top five with LE 17 billion, representing 2 percent.
Moreover, the Islamic financial sector in Egypt witnessed growth in the Sukuk market, with total issuances amounting to LE 100 billion in 2024. This included both sovereign and corporate Sukuk, indicating heightened investor interest in Sharia-compliant financial instruments. The sector also expanded through 17 Islamic investment funds, seven Takaful insurance companies, and two real estate financing firms following Sharia guidelines. Additionally, the incorporation of Islamic financial products increased among microfinance and consumer finance companies.
In summary, Egypt’s Islamic banking sector experienced significant growth in 2024, reaching LE 1.14 trillion and accounting for 5 percent of the total banking market. Both Islamic deposits and Sharia-compliant financing saw substantial increases, with multiple new financial products and services made available. Despite these advances, continued innovation is essential to address the diverse financial needs in the marketplace.
Original Source: www.egypttoday.com
