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.