Banks' loans to services sector rise to EGP 196.9 bn by end of April 2024

The loans of banks operating in the Egyptian banking market (other than the Central Bank) for the services sector advanced significantly during the first 4 months of this year, rising by about 12.35%, with an increase of EGP 99.5 bn.

According to the latest data from the Central Bank, banking loans provided to the service sector recorded EGP 905.3 bn by the end of April 2024, compared to EGP 805.8 bn by the end of 2023.

Banks’ loans balances in local currency for the services sector rose by 4.70% during the first 4 months of this year, reaching EGP 678 bn by the end of April 2024, compared to EGP 647.6 bn by the end of 2023

This significant surge of loans in local currency to the service sector resulted from an increase in banks' loans to the service private sector in local currency to EGP 611.6 bn by the end of April 2024, compared to EGP 576.5 bn by the end of 2023, with a growth of 6.08%, and an increase of over EGP 35 bn.

Banks’ loan balances for the services sector in foreign currencies rose to the equivalent of EGP 227.3 bn by the end of April 2024, compared to EGP 158.2 bn by the end of 2023, with a growth of 43.68%, and an increase of EGP 69.1 bn.

As a result of a 45.80% increase in banks' loans to the private sector in foreign currency during the first 4 months of this year, the significant leap was made by the service sector in foreign currencies to register the equivalent of EGP 16.9 bn by the end of April 2024, compared to EGP 135.1 bn by the end of 2023.

It should be noted that in this sector there are many opportunities inherent in service activities that can double the export profits of Egyptian services, most notably banking services. The Egyptian banking sector has made significant progress in implementing the "Basel 1, 2 and 3" decisions for banking control of banks operating in Egypt; Thus, Egyptian banks have great opportunities to spread in Arab and African foreign markets and raise their share in regional banks.

Shipping and logistics services also have many opportunities, especially since Egypt is one of the countries that plays an important role in shipping services, because of its unique geographical location and possession of a global shipping corridor, Suez Canal, which qualifies it to play an important and leading role in the field of shipping services, ports and logistics, especially in the Arab and African region and the countries bordering the Mediterranean Sea and the Red Sea, especially since Egypt has a variety of sea ports between specialized (38 ports) and commercial (18 ports) on the Red Sea and the Mediterranean Sea.