Islamic banking has gained significant traction in Egypt over the past few years, with increasing interest from both individuals and businesses in Sharia-compliant financial products. Islamic finance adheres to Islamic law (Sharia), which promotes risk-sharing and ethical investments. This alternative financial model is seen as more socially responsible, which is one reason it has become so popular.

This factsheet explores the scene of Islamic banking in Egypt and highlights the key aspects of its growth.

• Currently, Egypt is home to 15 banks that offer Islamic banking services, three of which operate as fully Islamic banks: Faisal Islamic Bank, Al Baraka Bank, and Abu Dhabi Islamic Bank. These institutions offer a broad range of Sharia-compliant services, including savings accounts, mortgages, and business financing.
• The number of Islamic banking branches in Egypt reached 265 by 2024, a nine-branch increase from 2023, serving around 4 million customers.
• By the end of June 2024, the volume of Islamic banking operations in Egypt reached approximately EGP 737 billion, representing around 4% of the Egyptian banking market. This marks a growth of EGP 175 billion, or 31.1%, compared to June 2023.
• Faisal Islamic Bank leads Egypt’s Islamic banking sector with a business volume of EGP 215 billion, holding a 29.3% market share. Abu Dhabi Islamic Bank follows closely with a 28.3% market share. Banque Misr’s Islamic transactions division ranks third with a 19% market share.
• As of June 2024, Islamic banking assets in Egypt reached EGP 840 billion, reflecting a substantial 31.1% year-on-year (YoY) growth. This sharp increase underscores the growing demand for Islamic financial products across various sectors.
• The rise in Islamic banking is further reflected in the deposit base, which has surged by 32% YoY to EGP 561 billion by mid-2024.
• By June 2024, Islamic financing also grew by 33.7% YoY, amounting to EGP 602 billion. Islamic financial institutions offer a wide range of products like Murabaha (cost-plus financing), Ijara (leasing), and Musharaka (partnership).
• In addition to Islamic banking, Egypt has 17 Sharia-compliant investment funds, seven Takaful (Islamic insurance) companies, and two real estate financing companies. This highlights the growing presence and diversity of Islamic financial services in the country.

By: Amina Hussein

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