Egypt's Islamic Banking sector hits LE 1.079trn mark amid robust annual growth

Egypt Today

2 days ago

CAIRO – June 2, 2025 — Egypt's Islamic banking industry has recorded significant progress, with the total volume of sharia-compliant financial activities climbing to LE 1.079 trillion by the end of March 2025. The Egyptian Islamic Finance Association (EIFA) reports this marks a LE 379 billion rise from the previous year—a sharp 54 percent growth.
This surge is largely attributed to substantial increases in both Islamic deposits and financing. Sharia-compliant deposits climbed to LE 784 billion, reflecting a year-on-year increase of LE 273 billion. These funds now account for 7.4 percent of total deposits across the national banking system.
The continued growth highlights the expanding role of Islamic finance in Egypt's broader financial landscape, with more consumers and institutions turning toward banking models that comply with Islamic law.
Similarly, Islamic financing reached LE 886 billion, making up 6 percent of total loans issued nationwide. This reflects a year-on-year increase of LE 310 billion—also a 54 percent 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 LE 282 billion, securing a 26.1 percent share. Faisal Islamic Bank of Egypt follows closely with LE 247 billion (22.9 percent). Banque Misr's Islamic windows ranked third at LE 209 billion (19.4 percent), while Al Baraka Bank and The United Bank took fourth and fifth places with LE 134 billion (12.4 percent) and LE 16 billion (1.5 percent), 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.