Egypt’s Islamic banking sector grew to EGP 1.14 trillion in 2024, capturing 5% of the total banking market. This marks a 68% increase from 2023, with 15 licensed banks offering Islamic services. ADIB leads the sector, while Islamic deposits and financing have also seen significant growth. The market is expanding with new Sukuk issuances and a diverse range of Sharia-compliant financial products, positioning the sector for continued development and increased financial inclusion.
In 2024, Egypt’s Islamic banking sector reached EGP 1.14 trillion, representing about 5% of the total banking market, with a substantial EGP 412 billion increase from December 2023, marking a 68% growth rate. The Central Bank of Egypt (CBE) has licensed 15 institutions for Islamic banking, including four operating solely on Islamic finance principles: Faisal Islamic Bank, Al Baraka Bank, Abu Dhabi Islamic Bank – Egypt (ADIB), and Kuwait Finance House. Additionally, 11 conventional banks provide Islamic banking through specialized branches.
By 2024, the number of Islamic banking branches in Egypt grew to 311, serving close to 4 million customers, an increase of 51 branches year-on-year. Some conventional banks extend Sharia-compliant services throughout their networks, with Nasser Social Bank, a governmental entity, continuing to offer a variety of products aligned with Islamic principles.
ADIB leads the Islamic banking sector in Egypt with a business volume of EGP 258 billion and a market share of 24.5%, achieving a growth of 62% since 2023. Faisal Islamic Bank follows closely at EGP 240 billion with a 23.6% market share. Banque Misr’s Islamic Transactions Unit ranks third at EGP 195 billion, while Al Baraka Bank and the United Bank are fourth and fifth with EGP 128 billion and EGP 17 billion, respectively.
Islamic deposits hit EGP 738 billion in December 2024, representing 7.3% of total banking deposits and reflecting a 65% increase year-on-year. Sharia-compliant financing also grew to EGP 807 billion, accounting for 6% of the overall loan portfolio, marking a 64% rise compared to 2023. The expansion of Islamic banking products continues, with over 65 Sharia-compliant financial instruments currently available.
The Sukuk market has also expanded, with total issuances reaching EGP 100 billion in 2024, driven by increased investor interest in Sharia-compliant financing options. The Islamic finance sector features 17 investment funds, seven Takaful companies, and two real estate financing firms, with microfinance and consumer finance sectors increasingly integrating Islamic products.
The ongoing development in Islamic banking is poised to enhance financial inclusion and economic growth within Egypt, as industry leaders anticipate further growth and diversification of the services offered.
The Islamic banking sector in Egypt has demonstrated remarkable growth in 2024, showcasing a significant increase in market participation and the introduction of various Sharia-compliant products. With established banks like ADIB and Faisal Islamic Bank taking leading positions, the sector not only caters to a growing customer base but also fosters financial inclusion through innovative solutions. As the industry progresses, the expansion into Sukuk and other investment avenues highlights the sector’s potential as a driver of economic development in Egypt.
Original Source: www.dailynewsegypt.com
