Cairo – August 25, 2025: Egypt’s Islamic finance sector has recorded remarkable expansion, with its total market size reaching LE 1.303 trillion as of June 2025 - an impressive 51 percent increase over the previous year, revealed Mohamed El-Beltagy, Chairperson of the Egyptian Islamic Finance Association, in the association’s latest report.
This growth reflects a surge across all key components of the sector, including Islamic banks' assets, sukuk issuances, and other Sharia-compliant financial products.
According to the report, Islamic banks’ assets stood at LE 1.113 trillion by mid-2025, up by LE 375 billion year-on-year. This accounts for 5.2 percent of total assets in Egypt’s banking system.
Sukuk issuances have also expanded, with a total value of LE 157 billion, reinforcing the sector’s position as a significant player in alternative financing.
Deposits in Islamic banking reached LE 810 billion, marking a 45 percent annual growth, and now represent 7.3 percent of total banking deposits in Egypt. Meanwhile, Islamic financing climbed to LE 881 billion, up 46 percent year-on-year, constituting 6 percent of the total bank financing market.
Currently, 15 banks are licensed by the Central Bank of Egypt to provide Islamic banking services. These include four fully Sharia-compliant banks—Faisal Islamic Bank, Al Baraka Bank, Abu Dhabi Islamic Bank (ADIB), and Kuwait Finance House—as well as 11 conventional banks that offer Islamic products through dedicated branches.
The number of Islamic banking branches has grown to 322, up from 265 branches in 2024. These serve approximately 4 million customers, with many conventional banks now offering Islamic financial products across all their locations.
ADIB continues to dominate the Islamic banking landscape in Egypt, with a business volume of LE 296 billion, giving it a 26.6 percent market share. This represents a 42 percent increase from the previous year.
Trailing closely is Faisal Islamic Bank of Egypt, with LE 248 billion in business volume (22.3 percent share), followed by Banque Misr’s Islamic branches, which manage LE 224 billion, equivalent to a 20.1 percent market share.
Other notable players include Kuwait Finance House with LE 153 billion (13.8 percent) and Al Baraka Bank Egypt with LE 136 billion (12.2 percent).
El-Beltagy highlighted the sector’s efforts to expand its offerings, noting that over 65 Sharia-compliant financial products are now available in Egypt. These span savings, financing, and investment services. However, he acknowledged the need for continued innovation, especially to meet the needs of individuals, SMEs, and public sector entities.
The sector’s global size reached approximately $4.8 trillion as of June 2025 and is projected to grow to $6.6 trillion by 2027. Worldwide, there are now 1,871 Islamic financial institutions operating under Sharia principles, underscoring the sector’s growing international relevance.
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