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Egypt’s Islamic banking record EGP 407B in September

Egypt’s Islamic banking record EGP 407B in September

ArabFinance: The volume of Islamic banking in Egypt leveled up 14.5% year-on-year (YoY) to EGP 407 billion in September 2021, according to recent report by the Egyptian Association for Islamic Finance.

According to the association, 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 335 billion by the end of September 2021, and constitutes 7% of the size of the Egyptian banking market, with an increase of EGP 35.1 billion and a growth rate of 11.7% over September 2020.

El-Beltagy added that the volume of financing at the end of September 2021 recorded about EGP 313.2 billion, which constitutes 5.5% of the size of the Egyptian banking market, an increase of EGP 28.2 billion and a growth rate of 10% compared to September 2020.

He further noted 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 the report, Faisal Islamic Bank of Egypt ranked the first in the Islamic banking market in Egypt with a turnover of EGP 126 billion 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 90 billion, at a rate of 22.1%, then Abu Dhabi Islamic Bank Egypt in third place with a turnover of EGP 84.5 billion, or 20.8%, and Al Baraka Bank in fourth place, with EGP 78.2 billion, or 19.2%.

However, the Egyptian market may witness the development of many Islamic banking products that meet the needs of customers, which are more than 55 banking products and services.

El-Beltagy  explained that the market needs more innovative products within Islamic Sharia and provide these products to clients, which is what the association is working on in terms of providing a professional master’s degree in Islamic finance issued by the General Council of Islamic Banks and Financial Institutions, certificates of the Accounting and (AAOIFI), and specialized programs to develop skills and increase the knowledge of employees in Islamic banks.

Globally, 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.

 

 

 

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