Egypt’s Islamic Banking Transactions Hit $14.5 Billion in March 2024

By the end of March 2024, Egypt’s Islamic banking sector reached a significant milestone, with transactions valued at EGP 701 billion ($14.51 billion), marking a 28.8% annual increase. According to the latest report from the Egyptian Islamic Finance Association (EIFA), deposits in Islamic banks rose from $8.56 billion in March 2023 to $10.56 billion in March 2024, a 23.5% increase. Additionally, Islamic financing saw a remarkable 33.8% rise, totaling $11.92 billion, and representing 5.4% of Egypt’s total loan portfolio across all banks.

Growth and Market Share Of Egypt’s Islamic Banking

The EIFA report highlights the growth of Islamic banking in Egypt, noting that the sector includes 14 banks licensed by the Central Bank of Egypt (CBE) to offer Islamic financial products. Furthermore, 11 banks operate both Islamic and traditional branches. As of March 2024, the number of Islamic bank branches expanded to 264, serving around four million customers, and making up 5% of the overall banking sector in Egypt.

Leading Islamic Banks in Egypt

A previous quarterly report from EIFA reveals that the volume of Sukuk issuance in Egypt reached $1.71 billion by the end of 2023. The top performers in the Islamic banking sector include:

• Faisal Islamic Bank of Egypt: Market share of 31% and a turnover volume of $4.49 billion.
• Abu Dhabi Islamic Bank: Turnover of $3.93 billion with a market share of 17.1%.
• Banque Misr’s Islamic branches: 19% market share with a turnover of $2.75 billion.
• Al Baraka Bank: 16.1% market share and a turnover of $2.34 billion.
• United Bank of Egypt: Market share of 2.2% and a turnover of $330 million.

Global Islamic Banking Outlook

The growth in Egypt’s Islamic banking sector is mirrored globally. The Al Huda Center of Islamic Banking and Economics projects global Islamic banking assets to reach $5 trillion by 2025. A report by the Islamic Corporation for the Development of the Private Sector (ICD) and the London Stock Exchange Group (LSEG) indicated that Islamic banking assets hit a record $4.5 trillion in 2022, reflecting an 11% annual increase. ESG sukuk reached a record $8.4 billion, with Islamic ESG funds totaling $6.6 billion.

S&P Global predicts sukuk issuances to be between $160 billion and $170 billion in 2024. The Sukuk market began 2024 robustly, with total issuances amounting to $46.8 billion by March 31, 2024, compared to $38.2 billion at the end of March 2023.

The substantial growth in Egypt’s Islamic banking sector reflects its increasing significance and potential. With continued support from regulatory bodies and the robust performance of key players, the sector is poised for further expansion and success. Stay updated with the latest in banking and finance to witness the evolving landscape of Egypt’s Islamic banking.