Islamic Banking in Egypt witnesses EGP 701bn turnover in March 2024

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Mon, 24 Jun 2024 - 01:15 GMT

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Mon, 24 Jun 2024 - 01:15 GMT

CAIRO – 24 June 2024: The value of transactions within Islamic banking has reached EGP 701 billion. This represents a surge of LE 157 billion compared to March 2023, indicating a year-on-year expansion of 28.8 percent, according to a report released by the Egyptian Islamic Finance Association (EIFA).
 
The Egyptian Exchange (EGX) introduced the Shariah-compliant EGX33 index in June, which
features 33 carefully selected companies.
 
 This move aims to cater to the increasing interest from local, regional, and international investors in Islamic financial opportunities.
 
Islamic banking has secured a significant presence in the Egyptian banking market, accounting for 5 percent of the overall sector.
 
 The Central Bank of Egypt has granted licenses to 14 banks to provide Islamic financial products, including three dedicated Islamic banks: Faisal Islamic Bank of Egypt, Al Baraka Bank Egypt, and Abu Dhabi Islamic Bank Egypt. Furthermore, 11 other banks have integrated Islamic branches into their conventional banking operations.
 
The branch network of Islamic banks has expanded to include 264 branches, witnessing a growth of 10 branches compared to the previous year. 
 
These branches cater to approximately 4 million customers. In terms of performance, Faisal Islamic Bank of Egypt leads the market with a turnover of LE 217 billion, capturing a 31 percent market share.
 Abu Dhabi Islamic Bank - Egypt closely follows in second place, with a turnover of LE 190 billion (27.1 percent market share). Banque Misr's Islamic branches secure the third position, contributing LE 133 billion (19 percent market share).
 
As of March 2024, Islamic deposits have reached LE 510.5 billion, reflecting a growth of 23.5 percent compared to the previous year. 
 
These deposits constitute approximately 6.5 percent of the total deposit volume in the Egyptian market. Financing compliant with Islamic Sharia principles stands at LE 576 billion, exhibiting an increase of LE 145 billion (33.8 percent growth). This amount corresponds to 5.4 percent of the total loan portfolio across all banks.
 

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