Sharia-compliant financing up by 26.5% in September 2023, Islamic Finance Association

Cairo – November 22, 2023: Sharia-compliant financing surged by 26.5 percent year-on-year to LE 466.4 billion in September 2023, representing 4.1 percent of the total financing portfolio in the Egyptian banking sector, according to a recent report by the Egyptian Islamic Finance Association (EIFA).

As a whole, Islamic banking witnessed a significant increase of 27 percent year-on-year in September, compared to September 2022’s LE 120 billion, to reach LE 562 billion and amount to 5 percent of LE 562 billion.

Sharia-compliant deposits jumped by 18 percent in the same period to report LE 430.8 billion, taking around 5.8 percent of the total deposits in the local banking sector.

The EIFA reported that there are 14 banks currently operating in Egypt with a license from the CBE to offer Islamic products, including three exclusively Islamic banks; Faisal Islamic Bank of Egypt, Al Baraka Bank Egypt, and Abu Dhabi Islamic Bank – Egypt.

The remaining 11 banks have dedicated branches to provide Islamic financial products and services, with some permitted to do so in all of their branches, however the report did not disclose which.

An additional 15 branches dealing in Islamic financial products were established since 2022, bringing the total number to 260.

Leading the Islamic Finance market with the Egyptian banking sector was Faisal Islamic Bank of Egypt, with a 29.5 percent market share and a recorded business volume of LE 171 billion.

In second place was Abu Dhabi Islamic Bank – Egypt with a 25.3 percent market share and a business volume of LE 147 billion The EIFA also remarked that it achieved the highest growth rate within the Egyptian Islamic Banking market, reporting a 41.4 percent growth in 2023.

Banque Misr’s “Islamic Transactions” followed with a 20 percent market share and business volume of LE 121 billion.

Al Baraka Bank was fourth with 17 percent of the market and LE 98.3 billion in business, with the United Bank holding 2.6 percent of the market with LE 15 billion.

EIFA’s report also highlighted Ahli United Bank’s ongoing transition into an exclusively Islamic bank after being acquired by Kuwait Finance House.