Islamic Banking in Egypt Reaches EGP 1.14 Trillion in 2024

In 2024, Egypt’s Islamic banking sector grew to EGP 1.14 trillion, representing 5% of the total market with a 68% increase from December 2023. The sector consists of 15 licensed banks, including four solely focused on Islamic finance. Islamic deposits soared to EGP 738 billion, while Sharia-compliant financing totalled EGP 807 billion. The Sukuk market also saw notable expansion, with issuances reaching EGP 100 billion.

In 2024, the Islamic banking sector in Egypt has surged to EGP 1.14 trillion, which accounts for about 5% of the total banking market. This notable growth of EGP 412 billion since December 2023 indicates a remarkable increase of 68%. The sector is supported by 15 banks licensed by the Central Bank of Egypt to provide Islamic banking services, with four banks exclusively adhering to Islamic finance principles.

The number of dedicated Islamic banking branches has risen to 311, up by 51 from the previous year, catering to nearly four million customers. In addition, conventional banks licensed to provide Islamic banking services have begun to offer Sharia-compliant options throughout their branch networks. Nasser Social Bank, a government entity, continues to deliver various Islamic financial products that comply with Sharia law.

Abu Dhabi Islamic Bank – Egypt (ADIB) has emerged as the leading Islamic bank with a business volume of EGP 258 billion, capturing 24.5% of the market, followed closely by Faisal Islamic Bank of Egypt with EGP 240 billion. Banque Misr’s Islamic Transactions Unit ranks third at EGP 195 billion, while Al Baraka Bank Egypt and The United Bank complete the top five with EGP 128 billion and EGP 17 billion, respectively.

As of December 2024, Islamic deposits totaled EGP 738 billion, representing 7.3% of the total deposits in the banking sector. This reflects a substantial increase of EGP 290 billion, indicating a growth rate of 65%. Additionally, Sharia-compliant financing has reached EGP 807 billion, comprising 6% of all bank loans, with a notable increase of EGP 314 billion over the previous year.

There is a continuous development of Islamic banking products in the Egyptian market, with over 65 different Sharia-compliant financial instruments available, including savings plans and investment products. Mohamed El-Beltagy, Chairperson of the Egyptian Islamic Finance Association, has stressed the importance of innovation in Islamic financial solutions, particularly for individuals, corporations, and SMEs.

The Islamic financial sector in Egypt has also witnessed the growth of the Sukuk market, with total issuances rising to EGP 100 billion in 2024, reflecting a growing interest among investors in Sharia-compliant financial instruments. Furthermore, the industry has expanded to include 17 Islamic investment funds, seven Takaful companies, and two Islamic real estate financing firms, along with increased adoption of Islamic financial products by microfinance and consumer finance companies.

With continued expansion, the Islamic banking sector in Egypt is poised for further growth and diversification, serving as a catalyst for financial inclusion and economic development.

The Islamic banking sector in Egypt has achieved significant growth, reaching EGP 1.14 trillion in 2024. With an increasing number of banks and Islamic financing products, this growth presents vast opportunities for financial inclusion and innovation. Industry leaders emphasize the potential for further advancement in Islamic financial solutions across various segments, fostering a robust economic environment.

Original Source: www.dailynewsegypt.com