The Islamic banking sector in Egypt has grown to EGP 1.14 trillion in 2024, representing 5% of the banking market, with a significant increase of EGP 412 billion from 2023. Key players include ADIB and Faisal Islamic Bank, as Islamic banking branches reached 311. Islamic deposits totaled EGP 738 billion, with financing at EGP 807 billion, reflecting a strong upward trend in the sector.
The Islamic banking sector in Egypt has experienced substantial growth, reaching EGP 1.14 trillion in 2024 and comprising approximately 5% of the total banking market. This represents a significant increase of EGP 412 billion from December 2023, reflecting an impressive growth rate of 68%. The sector comprises 15 banks authorized by the Central Bank of Egypt to offer Islamic banking services, including four banks that exclusively operate pursuant to Islamic finance principles.
Among the four solely Islamic banks are Faisal Islamic Bank of Egypt, Al Baraka Bank Egypt, Abu Dhabi Islamic Bank – Egypt (ADIB), and Kuwait Finance House, which has recently acquired Ahli United Bank. In addition, 11 conventional banks provide Sharia-compliant services through dedicated branches. As of 2024, the number of Islamic banking branches has increased to 311, serving nearly four million customers.
ADIB has firmly established itself as the leading Islamic bank in Egypt, achieving a business volume of EGP 258 billion and a market share of 24.5%, reflecting a growth rate of 62% compared to the previous year. Faisal Islamic Bank of Egypt follows closely with EGP 240 billion and a 23.6% market share, while Banque Misr’s Islamic Transactions Unit ranks third with EGP 195 billion, holding 19% of the market.
In December 2024, Islamic deposits reached EGP 738 billion, constituting 7.3% of total banking sector deposits, which marks an increase of EGP 290 billion or 65% year-over-year. Concurrently, Sharia-compliant financing stood at EGP 807 billion, accounting for 6% of the total loan portfolio and rising by EGP 314 billion, with a growth rate of 64% over the previous year.
The Egyptian market is witnessing the continuous creation of Islamic banking products, boasting over 65 Sharia-compliant financial instruments, including savings plans and investment products. However, Mohamed El-Beltagy, Chairperson of the Egyptian Islamic Finance Association, emphasized the urgent need for further innovation in Islamic financial solutions across various sectors, including SMEs and public finance.
In addition to banking, the Islamic financial sector is expanding its Sukuk market, with total issuances amounting to EGP 100 billion in 2024, driven by a rising interest in Sharia-compliant financial options. The industry is also seeing growth in related sectors, including 17 Islamic investment funds and several Takaful (Islamic insurance) companies, along with two firms focused on Sharia-compliant real estate financing.
With substantial expansion underway, stakeholders anticipate continued growth and diversification of the Islamic banking sector in Egypt, viewing it as a critical driver for financial inclusion and economic development.
The Islamic banking sector in Egypt has shown remarkable growth, reaching a value of EGP 1.14 trillion in 2024, indicating the sector’s increasing importance within the overall banking landscape. The rise in Islamic deposits and Sharia-compliant financing further highlights the growing customer base and the demand for compliant financial products. As innovation continues, the sector is poised to significantly contribute to Egypt’s economic development and financial inclusion efforts.
Original Source: www.dailynewsegypt.com
