Fatma Lotfy, vice chairman and managing director of Bank Audi, said that Islamic banking is still facing many obstacles limiting its market volume to be less than 5% of the total banking activities in Egypt.
Ijara (Islamic lease) finances shall be authorized for commercial banks so that they could compete with Islamic banks, Lotfy added at the 2nd International Conference on Islamic Fund & Investment. Sukuk (Islamic bonds) are promising finance instruments in Egypt, Lotfy said.
Audi Bank plans to expand in offering Islamic financing for industrial, educational, petrochemicals and communications projects through arranging syndicated finances.
Lotfy added that Bank Audi and Banque Misr arranged Murabaha (Islamic Finance) for the establishment of Egyptian Steel Factory in Beni Suef in value to EGP 900 million.