Islamic banking in Egypt grows by 27% in 2023: EIFA
According to a report by the EIFA, 14 banks in Egypt have a license from the Central Bank of Egypt (CBE) to offer Islamic products
According to a report by the EIFA, 14 banks in Egypt have a license from the Central Bank of Egypt (CBE) to offer Islamic products. These include three fully Islamic banks: Faisal Islamic Bank of Egypt, Al Baraka Bank Egypt, and Abu Dhabi Islamic Bank – Egypt. Eleven banks have Islamic branches. The report noted that Ahli United Bank is currently transforming into a fully Islamic bank after being acquired by Kuwait Finance House.
The report stated that the number of Islamic branches reached 260, an increase of 15 branches over 2022. It also mentioned that some conventional banks have an Islamic financing license that allows them to provide Islamic financing services in all their branches.
The report ranked Faisal Islamic Bank of Egypt as the leader of the Islamic banking market in Egypt, with a business volume of EGP 171bn, or 29.5% of the Islamic banking industry. Abu Dhabi Islamic Bank – Egypt came second, with a business volume of EGP 147bn, or 25.3% of the market. It also achieved the highest growth rate of 41.4% in the Egyptian Islamic banking market this year.
The report placed Banque Misr’s “Islamic Transactions” in third place, with a business volume of EGP 121bn, or 20% of the market. Al Baraka Bank ranked fourth, with a business volume of EGP 98.4bn, or 17% of the market. The United Bank came fifth, with a business volume of EGP 15bn, or 2.6% of the market.
The report revealed that the volume of Sharia-compliant financing in the Egyptian market reached EGP 466.4bn in September 2023, equivalent to 4.1% of the total financing portfolio in the Egyptian banking sector. This is an increase of EGP 121.6bn, or 26.5%, compared to September 2022.
On the other hand, the volume of Sharia-compliant deposits amounted to EGP 430.8bn, equivalent to 5.8% of the total deposits in the Egyptian banking sector. This is an increase of EGP 67bn, or 18%, compared to September 2022.
The report pointed out that the Egyptian market has witnessed the development of many Islamic banking products that meet the needs of customers, with more than 65 banking products and services. It stressed that the market still needs to develop and innovate more Sharia-compliant products, whether for individuals, the corporate sector, or the small and medium enterprise sector.
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