The Egyptian Association for Islamic Finance revealed that the volume of Islamic banking in Egypt increased to about EGP 496bn in 2022, an increase of EGP 67bn, and a growth rate of 15.8% from 2021. It pointed out that this banking constitutes 5% of the total volume of the Egyptian banking market.
According to a recent report issued by the association, Faisal Islamic Bank of Egypt topped the Islamic banking market in Egypt during the year 2022, with a turnover of EGP 151.6bn, accounting for 30.6% of the volume of that industry, with a growth rate of 15% over 2021.
Abu Dhabi Islamic Bank – Egypt came in second with a turnover of EGP 115.5bn, with a share of 23.3%, and a growth rate of 28%, while Banque Misr “Islamic Transactions” came in third place with a turnover of EGP 108bn, and a share of 21.8%, as well as a growth rate of 14. %. Al Baraka Bank came in fourth place with a turnover of EGP 87.2bn, with a share of 17.6%.
The United Bank came in fifth with a turnover of EGP 14bn, and a share of 3%.
The Egyptian banking market includes 14 banks that have a license from the Central Bank of Egypt (CBE) to offer Islamic banking products, and there are 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 beside the traditional branches.
According to the association, the volume of Islamic deposits reached EGP 390.7bn ]by the end of 2022, an increase of EGP 40bn, with a growth rate of 11.5% compared to December 2021. It pointed out that these deposits represent about 6.3% of the total volume of deposits in the Egyptian banking sector.
It added that the volume of Islamic financing recorded about EGP 388.9bn by the end of 2022, an increase of EGP 60.9bn, with a growth rate of 18.6% over 2021, representing about 5% of the total financing volume in the Egyptian banking sector.
The number of Islamic branches in Egyptian banks has reached 254, constituting 5.5% of the total number of branches in the Egyptian banking market, and providing services to more than 3.2 million clients.
The association stated that the Egyptian market witnessed the development of many Islamic banking products that meet the needs of customers, which are more than 60 products and banking services, stressing that the market still needs to develop and innovate many Sharia-compliant products, whether for the individual or corporate sector and the small and medium enterprises sector.
According to the association, after the corporate sukuk law and its executive regulations were issued, the Egyptian market witnessed the issuance of six sukuk at a value of EGP 11.3bn until the end of December 2022, pointing out that three issuances of new sukuk are currently being studied.
It added that the state’s sovereign sukuk law has been finalized and its executive regulations approved, and the first state sukuk was issued Tuesday, at a value of $1.5bn, according to a benefit lease contract.
It indicated that the volume of the Islamic banking industry worldwide reached more than $3.6trn by the end of 2022, according to international reports issued in this regard, and it is expected to reach about $4trn in 2023.