In Egypt, Islamic insurance is governed by unified Law No. 155 of 2024 and, since May 2026, by Decree No. 70 of the Financial Regulatory Authority, which sets the management models, the sharia committee and the distribution of surplus to participants.
The Financial Regulatory Authority in charge
The FRA, al-hay'a al-'amma lil-raqaba al-maliya, chaired by Dr Islam Azzam, supervises the entire Egyptian insurance sector, including takaful. On 10 May 2026 it announced the new framework applicable to companies authorised to write takaful business.
A unified insurance law
Law No. 155 of 2024 brings together the insurance rules in Egypt and explicitly names takaful among the lines it governs. It also requires higher capital, and the deadline for compliance with that requirement has been extended to 31 October.
Decree No. 70 of 2026
Approved by the FRA board on 18 March 2026, Decree No. 70 was published in the Egyptian Official Gazette, Al-Waqa'i' al-Misriya, issue 100 bis, on 6 May 2026. It replaces Decree No. 23 of 2019.
Three recognised management models
The Egyptian text allows wakala, mudaraba and a hybrid model. Under wakala, fees are a percentage of contributions set on the basis of an actuarial study; this mechanism is explained in detail in the wakala fee.
Caps for mudaraba and the hybrid model
Under mudaraba, the operator's share of the surplus is capped at 50%. In the hybrid model, wakala applies to the insurance activity and mudaraba to investments, with the operator's share limited to 30% of the net return.
An independent and binding sharia committee
Every Egyptian takaful company must appoint an independent sharia committee of at least three members registered with the FRA, for a three-year term. Its opinions are binding on management, and a sharia auditor must also be appointed.
The surplus belongs to participants
Shareholders receive no part of the surplus. It is shared in proportion to contributions, reserved for participants without claims, or paid after deducting indemnities received, as explained in sharing the underwriting surplus.
What happens in the event of a deficit
If the participants' fund falls into deficit, it is covered by reserves or by an interest-free loan from shareholders, known as qard. According to the FRA decree, this mechanism protects policyholders without turning the operator into an insurer carrying the risk itself.
Mandatory reinsurance through retakaful
The decree requires Egyptian takaful companies to reinsure with retakaful companies, unless the FRA gives prior approval otherwise. This requirement extends Islamic principles beyond the policyholder's contract, right into the protection of the fund against major claims.
Capital being strengthened
In July 2026, 82 of the 132 insurance companies of all types met the minimum capital set by Law No. 155. Before taking out a long-term contract, it is worth checking that the chosen operator is among the compliant companies.
Operators you need to identify yourself
We have not yet been able to verify the named list of Egyptian takaful companies or their market shares. The sensible approach is to ask the FRA or consult its publications to confirm that a company actually holds takaful authorisation.
Comparing with the rest of the region
For the Egyptian diaspora living in the Gulf, other frameworks exist, such as Saudi takaful or takaful companies in Kuwait. Since each country has its own rules, an Egyptian policy does not automatically cover a risk located abroad.
Taking out a takaful contract in Egypt
- Check with the FRA that the company is authorised to write takaful insurance in Egypt.
- Identify the model used, wakala, mudaraba or hybrid, and the fee or sharing percentage announced.
- Ask for the membership of the sharia committee and the name of the sharia auditor, both required by Decree No. 70.
- Read the surplus distribution method chosen by the operator from the three options provided by the FRA.
- Check exclusions, deductibles and limits, then compare with a competing Egyptian offer.
- If a claim arises, file a written notification with the requested documents and keep a receipt.
What the Egyptian takaful policyholder pays
| Price element | Role | Rules or variation |
|---|---|---|
| Contribution | Funds the participants' pool | Risk insured and amount covered |
| Wakala fee | Pays the managing operator | Percentage set by actuarial study |
| Mudaraba share | Rewards the operator from the surplus | Capped at 50% of the surplus |
| Investment share (hybrid model) | Rewards financial management | Capped at 30% of the net return |
| Surplus | Redistributed to participants only | Method chosen from three options |
Documents to gather in Egypt
- Egyptian national ID card or passport
- Recent proof of address
- Vehicle registration card for motor takaful
- Title deed or tenancy agreement for the home
- Medical questionnaire for a family contract
- Islamic financing contract, murabaha or ijara, if the policy secures it
Takaful pitfalls in Egypt
- Signing with a company that calls itself Islamic without checking its takaful authorisation with the Financial Regulatory Authority.
- Ignoring that shareholders have no right to the surplus: a clause saying otherwise would conflict with Decree No. 70 of 2026.
- Accepting a mudaraba share above 50% of the surplus or an investment share exceeding 30% of the net return.
- Not asking who sits on the sharia committee, even though its members must be registered with the FRA.
- Still relying on Decree No. 23 of 2019, which the new Egyptian framework replaced in May 2026.
Questions about Egyptian takaful insurance
Which authority supervises takaful in Egypt?
The Financial Regulatory Authority, chaired by Dr Islam Azzam. It supervises the whole insurance sector, including takaful, and in March 2026 adopted Decree No. 70, which sets the rules applicable to takaful companies.
What did FRA Decree No. 70 of 2026 change?
It replaces Decree No. 23 of 2019, specifies three management models, caps operator remuneration, requires an independent sharia committee and a sharia auditor, reserves the surplus for participants and makes retakaful mandatory unless the FRA agrees otherwise.
Who covers a deficit in an Egyptian takaful fund?
The fund's reserves come first, then, if needed, an interest-free loan granted by shareholders, called qard. This loan does not mean the operator takes on the risk, unlike the way a conventional insurer works.
Do Egyptian insurers have to increase their capital?
Yes, Law No. 155 of 2024 raises the minimum capital. In July 2026, the compliance deadline was extended to 31 October, while 82 out of 132 companies already met the threshold, across all types of insurance.