Islamic Finance: Assets likely to grow in Egypt

CAIRO: Egypt could see Islamic finance assets grow to $10 billion in 2013 from $6 billion in 2007, according to data provided by Bankscope and Thomson Reuters.

Although Egypt is considered the birthplace of Islamic finance, its growth has lagged due to past corruption scandals, while the previous government sought to enforce a more secular financial system.

However, more Muslims are embracing Islamic banking, raising the prospect that the country could become another thriving centre of Islamic finance.

According to a 2009 report by consulting firm McKinsey, Islamic banking only accounts for around four per cent of Egypt’s $193 billion banking industry.

There is also keen interest in Egypt for Islamic insurance which makes up five per cent of the $1.45 billion insurance market.