Sharia-compliant finance sees record 54% annual growth as Egyptians turn toward alternative banking paths.
Islamic banking in Egypt just hit a massive milestone. The sector soared to EGP 1.08 trillion by March 2025, up EGP 379 billion from the same time last year. That’s a 54% jump in just 12 months.
This isn’t a blip. It’s a strong, steady surge driven by rising trust in Sharia-compliant finance, a broader push for ethical banking options, and sharper competition between lenders. And it’s shifting the financial landscape for millions of Egyptians.
A Quiet Revolution in Deposits and Loans
The numbers tell a pretty loud story. Deposits in Islamic banks climbed to EGP 784 billion — that’s 7.4% of all deposits in Egypt’s banking sector.
Even more telling? That deposit figure went up EGP 273 billion year-on-year. Financing products saw a similar leap, reaching EGP 886 billion — again, a 54% increase, matching deposit growth stride for stride.
Two things are clear. People are trusting Islamic banks with their money. And they’re borrowing from them more than ever.
And this isn’t just personal finance.
Corporate borrowers, SMEs, and even public institutions are leaning more toward Islamic finance. It’s not only about religious reasons — many cite clearer terms, profit-sharing models, and the rejection of interest-based risk as real incentives.
Who’s Leading Egypt’s Islamic Finance Scene?
The market is competitive, but some players are clearly ahead of the curve.
Abu Dhabi Islamic Bank–Egypt (ADIB) tops the chart with a total business volume of EGP 282 billion. That gives it a 26.1% market share. Close behind is Faisal Islamic Bank of Egypt at EGP 247 billion (22.9%).
Banque Misr’s Islamic windows take third place with EGP 209 billion (19.4%), followed by Al Baraka Bank at EGP 134 billion (12.4%). The United Bank rounds out the top five with EGP 16 billion, or 1.5% of the market.
Here’s a quick look at the top banks and their market share:
| Bank Name | Volume (EGP) | Market Share |
|---|---|---|
| Abu Dhabi Islamic Bank–Egypt | 282bn | 26.1% |
| Faisal Islamic Bank of Egypt | 247bn | 22.9% |
| Banque Misr (Islamic Windows) | 209bn | 19.4% |
| Al Baraka Bank | 134bn | 12.4% |
| The United Bank | 16bn | 1.5% |
Branches Expand as Demand Swells
One branch at a time — that’s how Islamic banking is expanding on the ground. By March 2025, the total number of Islamic banking branches had reached 320. That’s 56 more than a year ago.
Kuwait Finance House led the charge, aggressively scaling its physical footprint across governorates. But they weren’t alone. Other players quietly followed suit, upgrading service quality, digital access, and outreach to rural and underserved communities.
Some banks that aren’t fully Islamic are offering these products across their entire branch networks. That includes big names like Banque Misr and Nasser Social Bank, which are finding strong traction even among secular customers.
One-liner here to keep it breezy.
It’s not just about brick and mortar either. Islamic banks are tapping into mobile apps, e-wallets, and online platforms to catch the younger, tech-savvy demographic — many of whom want religiously-aligned services without leaving their phones.
Central Bank’s Strategy and the Numbers Behind It
Fifteen banks in Egypt are licensed by the Central Bank of Egypt (CBE) to offer Islamic banking. Only four are fully Islamic — ADIB, Faisal Islamic Bank, Al Baraka, and Kuwait Finance House. The remaining 11 run Islamic windows alongside conventional services.
The CBE doesn’t just give out licenses — it’s been playing a strategic game to increase inclusion, transparency, and stability across the banking spectrum.
Key insights from the Egyptian Islamic Finance Association (EIFA) report:
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Islamic banking now serves nearly 4 million Egyptians.
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Growth rate of 54% is one of the highest globally this year.
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Islamic finance now covers 6% of total loans in Egypt.
Even if Islamic banks still represent a small fraction of the total market, they’re punching well above their weight in growth and customer loyalty.
What’s Fueling This Rapid Growth?
A few years back, Islamic finance was seen as a niche corner. Now? It’s mainstreaming fast. Several factors are feeding this boom.
• First, economic uncertainty has made people more cautious. Sharia-compliant banks, with their focus on risk-sharing and ethical investing, have become appealing.
• Second, Egypt’s population — largely Muslim and increasingly financially literate — is more aware of Islamic banking as a real alternative, not just a symbolic one.
• Third, regulatory support and better awareness campaigns from banks have helped. It’s not uncommon to see ads for Islamic mortgage products or savings plans on Cairo’s highways.
There’s also a generational angle. Many young Egyptians, especially in upper-middle-class urban circles, are turning to Islamic banks for reasons that blend ethics, convenience, and trust. And they’re bringing their families along with them.
Challenges on the Horizon
Still, it’s not all smooth sailing.
While growth is solid, there are structural issues to watch. For one, many Islamic banks still rely heavily on traditional products. Innovation in Sharia-compliant fintech and microfinance is lagging.
Another concern is staff training. There’s a growing need for bankers who not only understand finance but also Islamic jurisprudence. That talent pool isn’t very deep yet.
Lastly, competition from nonbank fintech players is starting to get real — and fast.
But overall, the direction is clear. Islamic banking in Egypt isn’t slowing down. If anything, it’s picking up speed — and changing the way millions of Egyptians save, spend, and borrow money.
