According to the EIFA’s latest data, Islamic banking accounts for approximately 5% of the overall Egyptian banking sector
Egypt’s Islamic banking sector saw significant growth over the year, reaching EGP 544 billion in March 2023, up 25% compared to March 2022, reported the Egyptian Islamic Finance Association (EIFA).
According to the EIFA’s latest data, Islamic banking accounts for approximately 5% of the overall Egyptian banking sector.
EIFA revealed that the Faisal Islamic Bank of Egypt holds the leading position in the Islamic banking market in Egypt, with a turnover of EGP 169.2 billion, accounting for 31.1% of the total volume of the Islamic banking industry in Egypt.
Followed by Abu Dhabi Islamic Bank (ADIB) Egypt with a volume of EGP 124.3 billion, representing a 23% market share.
Banque Misr for Islamic Transactions ranked third with a turnover of EGP 110 billion and a market share of 21.1%, experiencing a growth rate of 23%.
Al Baraka Bank Egypt took 4th place with a turnover of EGP 93.3 billion and a market share of 17.4%, followed by the United Bank with a turnover of EGP 14 billion, accounting for a 3% share.
Deposits compliant with Islamic law amounted to EGP 413.3 billion, representing a 28.5% growth rate when compared to March 2022. These deposits make up around 6% of the total deposit volume in the Egyptian banking sector.
Financing compliant with Islamic law reached EGP 430.6 billion, indicating a growth rate of 25.7%. This type of financing represents 5% of the total volume of financing in the Egyptian banking sector, the EIFA revealed.
Egypt's banking market includes 14 banks authorized by the Central Bank of Egypt to offer Islamic products. Among them, three are fully Islamic banks; Faisal Islamic Bank of Egypt, Al Baraka Bank of Egypt, and Abu Dhabi Islamic Bank - Egypt. Additionally, there are 11 banks that have both Islamic and traditional branches.
The EIFA also noted that six sukuk, worth up to EGP 12.8 billion, have been issued since the issuance of the corporate sukuk law and its executive regulations in late 2018. Currently, three new sukuk issuances are under consideration in the Egyptian market.
Furthermore, the sovereign sukuk law has been issued, and its executive regulations have been approved. The first state sukuk, worth $1.5 billion or EGP 46 billion, was issued on February 21 2023, based on a beneficial lease contract.
