Fawry considers CBE digital banking license, seeking to expand into KSA market

Cairo – July 18 2023: Egyptian digital finance platform, Fawry, is studying whether it will apply for a digital banking license, and is researching the feasibility of acquiring the license without bringing in a foreign partner, explained Fawry CEO Ashraf Sabry to Ashraq Business.

Fawry already has experience with lending and other financial activities, Sabry noted, adding that the company expects to make its official decision by the end of the year.

Last week, the Central Bank of Egypt (CBE) recently issued new amendments to regulations regarding licensing, registering, and supervision of digital banks. The CBE announced that the new requirements included a minimum issued and paid-up capital of LE 2 billion ($65 million) for digital banks.

Fawry, an EGX-listed company, has no difficulties with financing to establish a digital bank, Sabry emphasized, pointing out that the company maintains good liquidity volumes when discussing the company’s current capital.

The epayments company is also looking to expand into Saudi Arabia and is already in talks with the country’s central bank. Sabry stated that the company is seeking to finalize its expansion plans this year.

The Fawry CEO told Ashraq Business that the Saudi Arabian market is promising, highlighting its financial solvency and strong competition in the field of epayments.

Earlier this year, Sabry announced that Fawry was planning on launching a “remittance hub” by the end of the year. The hub would facilitate money transfers to Egypt from Egyptian expats living in the MENA region. At the time, Sabry explained that Fawry was in talks with Banque du Caire and the Abu Dhabi Islamic Bank.