Egypt’s Islamic banking sector has seen significant growth, with total market size reaching EGP 1.303trn by June 2025, marking a 51% increase from the previous year, according to Mohamed El-Beltagy, Chairperson of the Egyptian Islamic Finance Association. This includes assets of Islamic banks, sukuk issuances, and other Sharia-compliant financial activities.
In a detailed report issued by the association, El-Beltagy highlighted that Islamic banks’ total assets stood at EGP 1.113trn, accounting for 5.2% of the total assets in Egypt’s banking sector as of June 2025. This was a growth of EGP 375bn, reflecting a 51% annual rise compared to June 2024. Sukuk issuances in the market reached EGP 157bn.
Further developments were seen in Islamic banking deposits, which grew to EGP 810bn by June 2025, making up 7.3% of total bank deposits, a 45% increase year-over-year. Islamic financing also surged to EGP 881bn, representing 6% of total bank financing, with a 46% annual growth.
El-Beltagy also noted that there are now 15 banks licensed by the Central Bank of Egypt to offer Islamic banking services, including four fully Islamic banks—Faisal Islamic Bank, Al Baraka Bank, Abu Dhabi Islamic Bank, and Kuwait Finance House—alongside 11 conventional banks with Islamic banking branches.
The number of branches offering Islamic banking services has also risen, reaching 322 branches by June 2025, up from 265 in 2024. These branches serve approximately 4 million customers, with several conventional banks offering Islamic products across all their branches.
Among Egypt’s Islamic banking institutions, Abu Dhabi Islamic Bank (ADIB) leads the market with a business volume of EGP 296bn, capturing 26.6% of the sector’s total. The bank’s growth is notable, with an annual 42% increase in business volume by June 2025.
Faisal Islamic Bank of Egypt holds the second position with EGP 248bn in business volume, representing 22.3% of the market share, followed by Banque Misr’s Islamic transactions branches, which have a business volume of EGP 224bn and a 20.1% share.
Other key players include Kuwait Finance House (EGP 153bn, 13.8% share) and Al Baraka Bank Egypt (EGP 136bn, 12.2% share).
El-Beltagy emphasized that the Egyptian market is seeing increasing innovation, with over 65 Sharia-compliant products available, ranging from savings instruments to financing structures and investment services. Despite the progress, there remains room for further product development, particularly in meeting the needs of individuals, businesses, public institutions, and the growing small and medium enterprise (SME) sector.
On the global stage, the size of the Islamic banking industry reached approximately $4.8trn by June 2025, with projections indicating it could grow to $6.6trn by 2027. Worldwide, there are currently 1,871 Islamic financial institutions adhering to Sharia law, reflecting the expanding scope and relevance of Islamic finance in the global market.
