Latest news with #MohamedEl-Beltagy
Egypt Today
03-03-2025
- Business
- Egypt Today
Egypt's Islamic Banking Sector grows 68% in 2024, accounting for 5% of market
Cairo – March 3, 2025: In 2024, Egypt's Islamic banking sector saw substantial growth, reaching LE 1.14 trillion, which accounts for approximately 5 percent of the total banking market. This represents a significant increase of LE 412 billion from December 2023, reflecting an impressive 68 percent growth, as reported by Mohamed El-Beltagy, Chairperson of the Egyptian Islamic Finance Association (EIFA). Islamic deposits in Egypt stood at LE 738 billion by December 2024, accounting for 7.3 percent of total banking sector deposits. This reflected an increase of LE 290 billion, marking a 65 percent growth compared to the previous year. Sharia-compliant financing reached LE 807 billion, representing 6 percent of the total loan portfolio across all banks. This represented a rise of LE 314 billion, reflecting a 64 percent growth rate over 2023. The Egyptian market saw the continued development of Islamic banking products, with more than 65 Sharia-compliant financial instruments available, including savings plans, financing structures, and investment products. Despite this growth, El-Beltagy emphasized the need for further innovation in Islamic financial solutions across individual, corporate, public sector, and SME banking, as well as in non-banking financial services. By 2024, 15 banks in Egypt had been licensed by the Central Bank of Egypt (CBE) to provide Sharia-compliant banking services. Four of these banks operated exclusively on Islamic finance principles, including Faisal Islamic Bank of Egypt, Al Baraka Bank Egypt, Abu Dhabi Islamic Bank – Egypt (ADIB), and Kuwait Finance House, which had recently acquired Ahli United Bank. Additionally, 11 conventional banks offered Islamic banking services through dedicated branches. The number of Islamic banking branches in Egypt expanded to 311 last year, an increase of 51 branches from the previous year. These branches served nearly 4 million customers, with some conventional banks with Islamic finance licenses offering Sharia-compliant services across their entire branch networks. Nasser Social Bank, a government-owned entity, continued to offer a variety of Islamic financial products in accordance with Sharia law. ADIB maintained its position as the market leader in Egypt's Islamic banking sector, with a total business volume of LE 258 billion, capturing 24.5 percent of the market and achieving a 62 percent growth rate compared to 2023. Faisal Islamic Bank of Egypt followed closely in second place, recording LE 240 billion in business volume and a 23.6 percent market share. Banque Misr's Islamic Transactions Unit ranked third, reaching LE 195 billion and holding 19 percent of the market. Al Baraka Bank Egypt secured the fourth position with LE 128 billion in business volume and a 12.5 percent market share. The United Bank rounded out the top five, reporting LE 17 billion in Islamic business, representing 2 percent of the sector. Beyond banking, the Islamic financial sector experienced expansion in the Sukuk market, with total issuances reaching LE 100 billion in 2024. This included both sovereign and corporate Sukuk, reflecting increased investor interest in Sharia-compliant financial instruments. The industry also saw growth in related sectors, with 17 Islamic investment funds, seven Takaful (Islamic insurance) companies, and two real estate financing firms operating under Sharia principles. Additionally, microfinance and consumer finance companies increasingly incorporated Islamic financial products into their offerings.
Zawya
03-03-2025
- Business
- Zawya
Islamic banking in Egypt increases in 2024
The Islamic banking sector in Egypt reached EGP 1.14trn in 2024, representing approximately 5% of the total banking market, according to Mohamed El-Beltagy, Chairperson of the Egyptian Islamic Finance Association (EIFA). This marks an increase of EGP 412bn compared to December 2023, reflecting a strong 68% growth rate. Egypt's banking sector currently includes 15 banks licensed by the Central Bank of Egypt (CBE) to offer Islamic banking services. Among them, four operate exclusively under Islamic finance principles: Faisal Islamic Bank of Egypt, Al Baraka Bank Egypt, Abu Dhabi Islamic Bank – Egypt (ADIB), and Kuwait Finance House, which recently acquired Ahli United Bank. Additionally, 11 conventional banks provide Islamic banking services through dedicated branches. The number of Islamic banking branches in Egypt expanded to 311 in 2024, an increase of 51 branches compared to the previous year, serving nearly 4 million customers. Some conventional banks with Islamic finance licenses also offer Sharia-compliant services across their entire branch network. Nasser Social Bank, a government entity, continues to provide a range of Islamic financial products in line with Sharia law. ADIB maintained its position as the leading Islamic bank in Egypt, with a total business volume of EGP 258bn, capturing 24.5% of the market and achieving a 62% growth rate compared to 2023. Faisal Islamic Bank of Egypt followed closely in second place, recording EGP 240bn in business volume and a 23.6% market share. Banque Misr's Islamic Transactions Unit ranked third, reaching EGP 195bn and holding 19% of the market, while Al Baraka Bank Egypt secured the fourth position with EGP 128bn and a 12.5% share. The United Bank rounded out the top five, reporting EGP 17bn in Islamic business, representing 2% of the sector. Islamic deposits in Egypt stood at EGP 738bn in December 2024, making up 7.3% of total banking sector deposits. This reflects an increase of EGP 290bn, a 65% growth compared to the previous year. Meanwhile, Sharia-compliant financing reached EGP 807bn, accounting for 6% of the total loan portfolio across all banks. This represents a rise of EGP 314bn and a 64% growth rate over 2023. The Egyptian market continues to see the development of Islamic banking products, with more than 65 Sharia-compliant financial instruments available, including savings plans, financing structures, and investment products. Despite this growth, El-Beltagy emphasized the need for further innovation in Islamic financial solutions across individual, corporate, public sector, and SME banking, as well as in non-banking financial services. In addition to banking, the Islamic financial sector has seen an expansion in the Sukuk market, with total issuances reaching EGP 100bn in 2024. This includes both sovereign and corporate Sukuk, reflecting increased investor interest in Sharia-compliant financial instruments. The industry has also witnessed growth in related sectors, with 17 Islamic investment funds, seven Takaful (Islamic insurance) companies, and two real estate financing firms operating under Sharia principles. Furthermore, microfinance and consumer finance companies are increasingly incorporating Islamic financial products into their offerings. With the ongoing expansion of Islamic banking in Egypt, industry leaders anticipate further growth and diversification, positioning the sector as a key driver of financial inclusion and economic development.
Daily News Egypt
03-03-2025
- Business
- Daily News Egypt
Islamic banking in Egypt increases to EGP 1.14trn in 2024
The Islamic banking sector in Egypt reached EGP 1.14trn in 2024, representing approximately 5% of the total banking market, according to Mohamed El-Beltagy, Chairperson of the Egyptian Islamic Finance Association (EIFA). This marks an increase of EGP 412bn compared to December 2023, reflecting a strong 68% growth rate. Egypt's banking sector currently includes 15 banks licensed by the Central Bank of Egypt (CBE) to offer Islamic banking services. Among them, four operate exclusively under Islamic finance principles: Faisal Islamic Bank of Egypt, Al Baraka Bank Egypt, Abu Dhabi Islamic Bank – Egypt (ADIB), and Kuwait Finance House, which recently acquired Ahli United Bank. Additionally, 11 conventional banks provide Islamic banking services through dedicated branches. The number of Islamic banking branches in Egypt expanded to 311 in 2024, an increase of 51 branches compared to the previous year, serving nearly 4 million customers. Some conventional banks with Islamic finance licenses also offer Sharia-compliant services across their entire branch network. Nasser Social Bank, a government entity, continues to provide a range of Islamic financial products in line with Sharia law. ADIB maintained its position as the leading Islamic bank in Egypt, with a total business volume of EGP 258bn, capturing 24.5% of the market and achieving a 62% growth rate compared to 2023. Faisal Islamic Bank of Egypt followed closely in second place, recording EGP 240bn in business volume and a 23.6% market share. Banque Misr's Islamic Transactions Unit ranked third, reaching EGP 195bn and holding 19% of the market, while Al Baraka Bank Egypt secured the fourth position with EGP 128bn and a 12.5% share. The United Bank rounded out the top five, reporting EGP 17bn in Islamic business, representing 2% of the sector. Islamic deposits in Egypt stood at EGP 738bn in December 2024, making up 7.3% of total banking sector deposits. This reflects an increase of EGP 290bn, a 65% growth compared to the previous year. Meanwhile, Sharia-compliant financing reached EGP 807bn, accounting for 6% of the total loan portfolio across all banks. This represents a rise of EGP 314bn and a 64% growth rate over 2023. The Egyptian market continues to see the development of Islamic banking products, with more than 65 Sharia-compliant financial instruments available, including savings plans, financing structures, and investment products. Despite this growth, El-Beltagy emphasized the need for further innovation in Islamic financial solutions across individual, corporate, public sector, and SME banking, as well as in non-banking financial services. In addition to banking, the Islamic financial sector has seen an expansion in the Sukuk market, with total issuances reaching EGP 100bn in 2024. This includes both sovereign and corporate Sukuk, reflecting increased investor interest in Sharia-compliant financial instruments. The industry has also witnessed growth in related sectors, with 17 Islamic investment funds, seven Takaful (Islamic insurance) companies, and two real estate financing firms operating under Sharia principles. Furthermore, microfinance and consumer finance companies are increasingly incorporating Islamic financial products into their offerings. With the ongoing expansion of Islamic banking in Egypt, industry leaders anticipate further growth and diversification, positioning the sector as a key driver of financial inclusion and economic development.
