The total value of transactions in Islamic banking recorded EGP 701 billion, indicating a surge of EGP 157 billion compared to March 2023, according to a report released by the Egyptian Islamic Finance Association (EIFA).
This exceptional growth signifies a 28.8% year-on-year expansion.
Earlier in June, The Egyptian Exchange (EGX) officially launched EGX33, its Shariah-compliant index featuring 33 selected companies.
The new index aims to cater to the increasing demand for Islamic finance investment options from local, regional, and international investors.
Islamic banking has gained a presence in the Egyptian banking market, accounting for 5% of the overall sector. The Central Bank of Egypt has licensed 14 banks to offer Islamic financial products, including three exclusive Islamic banks: Faisal Islamic Bank of Egypt, Al Baraka Bank Egypt, and Abu Dhabi Islamic Bank Egypt. Additionally, 11 other banks have integrated Islamic branches into their traditional banking operations.
The branch network of Islamic banks has expanded to 264 branches, witnessing a growth of 10 branches compared to the previous year. These branches cater to around 4 million customers.
In terms of performance, Faisal Islamic Bank of Egypt leads the market with a turnover of EGP 217 billion, capturing a 31% market share.
Abu Dhabi Islamic Bank – Egypt closely follows in second place, with a turnover of EGP 190 billion (27.1% market share).
Banque Misr’s Islamic branches secure the third position, contributing EGP 133 billion (19% market share).
Islamic deposits have reached EGP 510.5 billion as of March 2024, displaying a growth of 23.5% compared to the previous year.
These deposits constitute approximately 6.5% of the total deposit volume in the Egyptian market. Financing compliant with Islamic Sharia principles stands at EGP 576 billion, exhibiting an increase of EGP 145 billion (33.8% growth). This amount corresponds to 5.4% of the total loan portfolio across all banks.—Business Today Egypt
