Islamic banking in Egypt surged 31.2% in June 2024: Egyptian Islamic Finance Association

Cairo – September 29, 2024: The Islamic banking sector continues to gain traction as it surged by 31.1 percent year-on-year in June 2024, reaching LE 737 billion compared to LE 175 billion in June 2023, according to a September report by the Egyptian Islamic Finance Association (EIFA).

Islamic banking now represents 4 percent of the overall Egyptian banking sector, supported by 14 banks licensed by the Central Bank of Egypt to offer Islamic financial products.

Currently, Faisal Islamic Bank of Egypt, Al Baraka Bank Egypt, and Abu Dhabi Islamic Bank Egypt operate exclusively as Islamic banks.

The remaining 11 banks incorporate Islamic branches alongside their traditional banking services, further expanding access to Sharia-compliant options.

Leading the Islamic banking sector is Faisal Islamic Bank of Egypt, with a turnover of LE 215 billion and a market share of 29.3 percent.

Following closely are Abu Dhabi Islamic Bank Egypt with LE 209 billion (28.3 percent market share) and Banque Misr’s Islamic branches, which contribute LE 140 billion (19 percent market share).

Al Baraka Bank ranks fourth with LE 124 billion (16.9 percent market share), while the United Bank rounds out the top five with LE 16 billion (2.2 percent market share).

Islamic deposits in Egypt reached LE 561 billion in June 2024, marking a 32 percent increase compared to the previous year and accounting for roughly 6.2 percent of the total deposits in the banking sector.

Sharia-compliant financing has also seen a significant rise, standing at LE 602 billion, an increase of LE 152 billion (33.7 percent), which represents 5 percent of the total loan portfolio across all banks.

The network of Islamic banking branches has also grown, now totaling 265, an increase of nine branches from June 2023. These branches cater to approximately 4 million customers, illustrating the expanding reach of Islamic financial services.

Globally, the Islamic banking industry has seen substantial growth, with total assets reaching approximately $4.6 trillion as of March 2024.