Sharia-compliant financing was recorded at EGP 466.4 billion in September 2023, 26.5% more than in September 2022, equivalent to 4.1% of the total financing portfolio in the Egyptian banking sector
Islamic banking represented 5% of the overall Egyptian banking market after reaching EGP 562 billion in September 2023, according to a recent report by the Egyptian Islamic Finance Association (EIFA).
This marked a significant increase of 27% year-on-year when compared to September 2022’s EGP 120 billion.
Sharia-compliant financing was recorded at EGP 466.4 billion in September 2023, 26.5% more than in September 2022, equivalent to 4.1% of the total financing portfolio in the Egyptian banking sector.
Deposits that were Sharia-complaint rose by 18% in September 2023 to hit EGP 430.8 billion, taking around 5.8% of the total deposits in the local banking sector.
To date, there are currently 14 banks operating in Egypt with the Central Bank of Egypt’s (CBE) approval – and license - to offer Islamic products, including 3 exclusively Islamic banks; Faisal Islamic Bank of Egypt, Al Baraka Bank Egypt, and Abu Dhabi Islamic Bank – Egypt.
The remaining 11 banks have dedicated branches to provide Islamic financial products and services, with some permitted to do so in all of their branches, however, the report did not disclose which.
According to the report, an additional 15 branches dealing in Islamic financial products were established, bringing up the total number to 260.
Leading the Islamic Finance market within the Egyptian banking sector was Faisal Islamic Bank of Egypt, with a 29.5% market share and a recorded business volume of EGP 171 billion.
In second place was Abu Dhabi Islamic Bank – Egypt with a 25.3% market share and a business volume of EGP 147 billion. The EIFA also remarked that it achieved the highest growth rate within the Egyptian Islamic Banking market, reporting a 41.4% growth in 2023.
Banque Misr’s “Islamic Transactions” followed with a 20% market share and business volume of EGP 121 billion.
Al Baraka Bank was fourth with 17% of the market and EGP 98.3 billion in business, with the United Bank holding 2.6% of the market with EGP 15 billion.
EIFA’s report also highlighted Ahli United Bank’s ongoing transition into an exclusively Islamic bank after being acquired by Kuwait Finance House.
