New year, same story: ‘Huge potential’ for Islamic banking in Egypt but lack of political will stymies growth
Photo: A man prays in front of Sayida Zeinab mosque as people celebrate the birthday of Sayida Zeinab, the granddaughter of Prophet Mohammad, near her shrine in Cairo, May 12, 2015. REUTERS/Asmaa Waguih
Egypt’s Islamic bank profits are up, structural reforms are accelerating an economic rebound and banking penetration among ordinary Egyptians remains low, all of which suggest Shariah-compliant financial services can make major gains in 2018.
Yet government antipathy towards Islamic banking and a lack of specific regulations to govern the sector could stymie growth.
Of the 40 banks operating in Egypt, three are fully-fledged Islamic banks, with about a dozen conventional banks operating Islamic windows. Islamic bank assets reached 226 billion Egyptian pounds in 2017, around $12.8 billion, up 10.24 percent in the previous year, according to the Egyptian Islamic Finance Association (EIFA).
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Matt Smith