A structured literature review of resilience in Egypt’s Islamic financial markets under global uncertainty

This structured literature review synthesizes what is known about the resilience of Egypt’s Islamic financial markets under heightened global uncertainty. Following a transparent screening protocol, we identified 312 records through database searches and targeted web searches, removed 39 duplicates, screened 273 titles/abstracts, assessed 104 full texts, and retained 78 studies and market/industry documents for qualitative synthesis. Of these 78 sources, 52 (approximately 67%) are peer-reviewed academic publications while 26 (approximately 33%) are policy documents, regulatory briefs, and vetted market reports. We organized the evidence using a conceptual framework that links global uncertainty channels (macroeconomic, geopolitical, and financial shocks) to institutional mechanisms (Shariah governance, prudential buffers, market infrastructure, and digital capabilities) and to segment-level outcomes across Islamic banking, sukuk and Islamic capital markets, takaful, and Islamic funds/microfinance. The evidence indicates that resilience in Egypt’s Islamic finance is mainly supported by (i) risk-sharing and asset-backed contractual structures, (ii) governance arrangements that strengthen Shariah compliance and stakeholder trust, (iii) prudential and liquidity management practices, and (iv) digitization and ESG-aligned social finance instruments that help sustain intermediation during shocks. However, the literature remains fragmented, with recurring gaps on liquidity-enhancing tools for sukuk markets, cross-segment spillovers, and consistent micro-level performance metrics. We outline actionable policy options centered on coordination between the Central Bank of Egypt (CBE) and the Financial Regulatory Authority (FRA), including a dedicated Shariah governance harmonization task force, improved disclosure standards for sukuk and takaful, and targeted digital and ESG initiatives to deepen inclusion. The review consolidates dispersed evidence on Egypt’s Islamic finance and clarifies the mechanisms through which Islamic finance can contribute to resilience and sustainable development in emerging economies.