New classification of Islamic banks in Egypt after Ahli United Bank joined them

Ahli United Bank - Egypt announced last May the transfer of all its banking operations to conform to the principles of Islamic sharia After working as a traditional bank, this follows the approval of the General Assembly of Kuwait Finance House to integrate with the parent group by joining Ahli United Bank and transferring its financial liability to the Kuwait Finance House at an exchange rate of approximately 0.37 shares from Kuwait Finance House versus one share from Ahli United Bank, how will this shift affect them? What is the bank's new location among Islamic banks in Egypt?

Depending on the seperate financial statements of the three Islamic banks operating in the Egyptian market Al Baraka, Faisal Islamic Bank of Egypt, Abu Dhabi Islamic Bank, with the addition of Ahli United Bank lists as a new member We note a significant convergence in the size of their market shares, and this will arouse competition among them to attract more customers. Especially as Kuwait Finance House is not easy, as it is a leader in Islamic banking. It is the first Islamic bank established in Kuwait in 1977 and is one of the leading Islamic financial institutions in the world.

In view of Ahli United Bank's position between Islamic banks just before it became an Islamic bank, it is ranked third on the asset level, with a market share of 0.71% of the total assets of the banking sector, with a portfolio size of 127.2 billion pounds by the end of March 2024.

Faisal Islamic Bank has a market share of 1.21% of the total assets of the banking sector by the end of the first quarter of 2024, following its portfolio of 217.2 billion pounds by the end of the same period.

By the end of March, Abu Dhabi Islamic Bank had an estimated market share of 1.06% of total banking assets, while Al Baraka Bank was ranked fourth with a market share of 0.63% by the end of the first quarter of this year. 

As for Ahli United Bank - Egypt's position in the deposit market, it is also third place with a market share of 0.89% of the total deposits of the banking sector by the end of last March, with a portfolio size of 101.4 billion pounds by the end of the same period. In terms of its position in the finance market, Ahli United Bank came second with a market share of 1.06% of total banking sector loans by the end of March, while Abu Dhabi Islamic Bank took the lead with a market share of 1.26% by the end of the same period.

Al Baraka is third with a market share of 0.72% of total Egyptian banking sector loans by the end of the first quarter of this year, while Faisal Islamic Bank is fourth and last with a market share of 0.26% by the end of the same period.