The Islamic banking sector in Egypt reached EGP 1.14 trillion in 2024, growing by 68% since December 2023. This sector now includes 15 licensed banks and has expanded to 311 branches, serving nearly 4 million customers. Key players include ADIB and Faisal Islamic Bank, with Islamic deposits and financing also witnessing significant growth. The Sukuk market and related sectors are thriving, emphasizing the sector’s importance in financial inclusion and economic development.
The Islamic banking sector in Egypt has observed significant growth, reaching EGP 1.14 trillion in 2024, which constitutes around 5% of the overall banking market. This increase of EGP 412 billion reflects an impressive 68% growth when compared to December 2023, as reported by Mohamed El-Beltagy, Chairperson of the Egyptian Islamic Finance Association (EIFA).
Currently, there are 15 banks licensed by the Central Bank of Egypt (CBE) to offer Islamic banking services. Of these, four banks operate solely under Islamic finance principles: Faisal Islamic Bank of Egypt, Al Baraka Bank Egypt, Abu Dhabi Islamic Bank – Egypt (ADIB), and Kuwait Finance House. Additionally, 11 conventional banks provide Sharia-compliant banking services through designated branches.
In 2024, the number of Islamic banking branches in Egypt grew to 311, marking an increase of 51 branches from the previous year. These branches cater to nearly 4 million customers. Notably, certain conventional banks offering Islamic finance licenses extend Sharia-compliant services across their entire branch networks, and Nasser Social Bank consistently provides a diverse array of Islamic financial products.
ADIB continues to dominate the Islamic banking landscape in Egypt, achieving a total business volume of EGP 258 billion, which translates to a market share of 24.5% and a growth rate of 62% compared to 2023. Faisal Islamic Bank of Egypt follows with a business volume of EGP 240 billion and a market share of 23.6%, while Banque Misr’s Islamic Transactions Unit ranks third with EGP 195 billion and 19% market share.
Islamic deposits reached EGP 738 billion by December 2024, accounting for 7.3% of the total deposits in the banking sector, representing an increase of EGP 290 billion. Meanwhile, Sharia-compliant financing reached EGP 807 billion, reflecting a 64% growth and making up 6% of the total loan portfolio.
The market has also seen the emergence of over 65 Sharia-compliant financial instruments, yielding various savings plans, financing structures, and investment products. Despite this noteworthy expansion, Mr. El-Beltagy stressed the importance of further innovation within Islamic finance, aiming for improvements across individual, corporate, public sector, and SME banking.
Moreover, the Sukuk market has expanded significantly, with total issuances reaching EGP 100 billion in 2024. This growth includes both sovereign and corporate Sukuk, indicating a rising investor interest in Sharia-compliant instruments. Related sectors have similarly grown, including 17 Islamic investment funds, seven Takaful companies, and two Sharia-compliant real estate financing firms.
With the ongoing growth of Islamic banking in Egypt, industry leaders project continued expansion and diversification, viewing the sector as a critical driver for financial inclusion and overall economic growth.
In summary, the Islamic banking sector in Egypt is experiencing remarkable growth, indicated by a substantial increase in market share, branch expansion, and diverse product offerings. Notable banks like ADIB and Faisal Islamic Bank are leading in business volumes, while innovations in Islamic financial solutions are encouraged to meet evolving customer needs. The Sukuk market and related sectors are also thriving, positioning Islamic finance as a vital component of Egypt’s financial ecosystem.
Original Source: www.dailynewsegypt.com
