Egypt’s Islamic banking sector expands 51%, market size hits $27bn
Industry records growth in assets, deposits, and sukuk issuances as Sharia-compliant finance strengthens role in economy
CAIRO, Egypt (MNTV) — Egypt’s Islamic banking sector recorded sharp growth in the first half of 2025, with the total market size reaching about $27 billion by June, marking a 51% increase compared to the previous year.
According to Mohamed El-Beltagy, Chairperson of the Egyptian Islamic Finance Association, the figure covers Islamic banks’ assets, sukuk issuances, and other Sharia-compliant activities.
In its latest report, the association revealed that Islamic banks’ total assets stood at $23.1 billion by June 2025, representing 5.2% of Egypt’s overall banking sector.
This reflected an increase of $7.8 billion from June 2024. Sukuk issuances in the local market were valued at around $3.3 billion.
Deposits in Islamic banks climbed to $16.8 billion, accounting for 7.3% of total bank deposits, with a 45% year-on-year rise.
Financing provided through Sharia-compliant channels reached $18.3 billion, capturing 6% of total banking sector financing, and rising 46% over the same period.
El-Beltagy noted that 15 banks licensed by the Central Bank of Egypt now provide 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 divisions.
The network of branches offering Islamic products expanded to 322 by June 2025, up from 265 a year earlier.
These branches serve nearly 4 million customers, with some conventional banks offering Sharia-compliant products across their full branch network.
Among individual players, Abu Dhabi Islamic Bank (ADIB) leads the market with a business volume of $6.1 billion, accounting for 26.6% of sector activity, after recording a 42% annual increase.
Faisal Islamic Bank follows with $5.2 billion and a 22.3% share, while Banque Misr’s Islamic branches recorded $4.6 billion, representing 20.1% of the market.
Other significant contributors include Kuwait Finance House with $3.2 billion (13.8%) and Al Baraka Bank Egypt with $2.8 billion (12.2%).
The sector currently offers more than 65 Sharia-compliant products, ranging from savings tools to financing and investment instruments. El-Beltagy emphasized that despite progress, further innovation is needed, particularly to serve individuals, businesses, public entities, and the growing SME sector.
Globally, the size of the Islamic banking industry stood at about $4.8 trillion by June 2025, with forecasts suggesting it could expand to $6.6 trillion by 2027. Worldwide, 1,871 Islamic financial institutions operate under Sharia principles, underscoring the rising international role of Islamic finance.
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