Fawry for Banking Technology and Electronic Payments, a trailblazer in Egypt’s fintech landscape, is setting its sights on Saudi Arabia as part of an ambitious regional expansion strategy. The move aligns with its broader objective of tapping into the Egyptian diaspora, one of the largest in the world, and enhancing its offerings in investment, lending, and insurance services.
Ashraf Sabry, founder and CEO of Fawry, revealed that the company’s daily investment fund has grown to EGP 1.3 billion. Launched in early 2022 in partnership with Misr Capital, the fund marked Fawry’s entry into investment services for individual investors. Building on this success, the company now plans to integrate investment products from asset managers directly into its mobile application.
Sabry underscored Fawry’s commitment to expanding its services to medium-sized enterprises, a segment the company views as “promising.” Over the past year, Fawry has onboarded more than 700 such businesses across Egypt’s governorates. Plans are underway to further enhance the company’s lending and insurance services for this underserved demographic.
Among Fawry’s more transformative initiatives is its exploration of digital banking. Sabry confirmed that the company is still evaluating the establishment of a digital bank, a move that would position it alongside other global fintechs expanding into banking services.
On its potential entry into Saudi Arabia, Sabry emphasized the need for meticulous preparation. “The Saudi market is highly competitive and requires great preparation,” he said, indicating that Fawry is considering partnerships to ease its entry. Saudi Arabia, home to the largest Egyptian expatriate community, offers immense potential for Fawry’s services, particularly in remittances and financial inclusion.
A Booming Diaspora
The Egyptian diaspora, estimated at 14 million people, has become a cornerstone of the country’s economy. In September 2024 alone, remittance inflows reached $2.7 billion, more than double the $1.3 billion recorded in September 2023. These funds are vital for bolstering Egypt’s foreign currency reserves amid ongoing economic challenges, including inflation and mounting debt.
Saudi Arabia plays a pivotal role in this equation. Its Egyptian expatriate population frequently utilizes services like Bank Al Jazira’s FAWRI Money Transfer, which simplify remittances. Fawry aims to compete in this lucrative space, leveraging its technology-driven platform to capture a share of the market.
Back home, Fawry is navigating regulatory pathways to expand its service offerings. The company is seeking Know Your Customer (KYC) and Electronic Signature licenses from the Financial Regulatory Authority, which recently approved a framework for fintech companies engaged in non-banking financial activities. These licenses would enable Fawry to provide secure digital identity and transaction services.
Additionally, Fawry awaits the Central Bank of Egypt’s approval to roll out money transfer services through its app, a move that could simplify remittances for Egyptian expatriates and further integrate them into the formal financial system.
Fawry’s expansion plans come at a critical juncture for both the company and Egypt’s broader economy. While efforts to attract foreign currency have seen mixed success — such as a recent car import scheme that fell short of its $2.5 billion target — Fawry’s foray into Saudi Arabia and its emphasis on diaspora engagement represent a targeted approach.
Should Fawry succeed in its regional expansion, it could set a precedent for other Egyptian fintechs eyeing international markets. As Sabry himself noted, the combination of a robust domestic presence and strategic international partnerships will be key to navigating the challenges ahead.
In a region increasingly driven by digital transformation, Fawry ’s bid to enter Saudi Arabia signals not just a new chapter for the company but also a testament to the growing role of fintech in connecting economies and communities.