The volume of Islamic banking in Egypt increased to EGP 407bn in September 2021, an increase of 14.5% from September 2020.
According to the Egyptian Association for Islamic Finance, Islamic banking currently accounts for about 5% of the Egyptian banking market.
Mohamed El-Beltagy, President of the Egyptian Association for Islamic Finance, said that the volume of Islamic deposits amounted to about EGP 335bn at the end of September 2021, and constitutes 7% of the size of the Egyptian banking market, with an increase of EGP 35.1bn and a growth rate of 11.7% over September 2020.
He added that the volume of financing at the end of September 2021 recorded about EGP 313.2bn, which constitutes 5.5% of the size of the Egyptian banking market, an increase of EGP 28.2bn and a growth rate of 10% compared to September 2020.
El-Beltagy explained that there are 245 Islamic branches in Egyptian banks, which constitute 5.5% of the number of branches in the Egyptian banking market, providing services to more than 3 million customers.
There are 14 banks that have a license from the Central Bank of Egypt (CBE) to provide Islamic banking products, including three fully Islamic banks, which are Faisal Islamic Bank of Egypt, Al Baraka Bank Egypt, and Abu Dhabi Islamic Bank – Egypt, in addition to 11 banks that have Islamic branches alongside their traditional ones.
According to a report by the association, Faisal Islamic Bank of Egypt maintained its first position in the Islamic banking market in Egypt with a turnover of EGP 126bn at the end of September 2021, constituting 31.1% of the volume of the Islamic banking industry in the Egyptian market.
The branches of Banque Misr for Islamic transactions came in second place with a turnover of EGP 90bn, at a rate of 22.1%, then Abu Dhabi Islamic Bank Egypt in third place with a turnover of EGP 84.5bn, or 20.8%, and Al Baraka Bank in fourth place, with EGP 78.2bn, or 19.2%.
It is noteworthy that the size of the Islamic banking industry worldwide amounted to more than $3tn in 2021, according to the report of the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI), and it is expected to reach about EGP 3.3tn in 2022.
