Egypt’s Islamic banking sector has witnessed remarkable expansion, reaching a total business volume of EGP 1.079 trillion as of March 2025. This represents an annual increase of EGP 379 billion and a growth rate of 54%, according to the latest figures released by the Egyptian Islamic Finance Association (EIFA).

The rise in Islamic banking is underpinned by notable growth in both deposits and financing. Sharia-compliant deposits rose to EGP 784 billion, an increase of EGP 273 billion compared to the same period last year. These deposits now represent 7.4% of the overall deposits in Egypt's banking sector.

Similarly, Islamic financing reached EGP 886 billion, making up 6% of total loans issued nationwide. This reflects a year-on-year increase of EGP 310 billion—also a 54% rise.

Currently, 15 banks are authorized by the Central Bank of Egypt (CBE) to provide Islamic banking services. Among them, four operate as fully Islamic institutions: Abu Dhabi Islamic Bank (ADIB), Faisal Islamic Bank of Egypt, Al Baraka Bank, and Kuwait Finance House. The remaining banks offer Islamic banking services through dedicated windows alongside conventional offerings.

The expansion of the sector is also evident in branch network growth. The number of Islamic banking branches across the country reached 320 by March 2025, increasing by 56 branches from the previous year. This growth was notably driven by the network expansion of Kuwait Finance House. Combined, these branches now cater to nearly 4 million customers.

EIFA also highlighted that some conventional banks have integrated Islamic financial products throughout their entire branch networks. Nasser Social Bank continues to offer sharia-compliant services as part of its operations as well.

In terms of market share, Abu Dhabi Islamic Bank–Egypt leads the Islamic banking landscape with a business volume of EGP 282 billion, securing a 26.1% share. Faisal Islamic Bank of Egypt follows closely with EGP 247 billion (22.9%). Banque Misr’s Islamic windows ranked third at EGP 209 billion (19.4%), while Al Baraka Bank and The United Bank took fourth and fifth places with EGP 134 billion (12.4%) and EGP 16 billion (1.5%), respectively.

The report underscores the growing appetite for Islamic financial services in Egypt, supported by regulatory backing and increased public interest in sharia-compliant banking solutions.