The Egyptian state-owned company E-Finance For Digital and Financial Investments (EGX:EFIH) is studying launching a digital bank, the company's chairman Ibrahim Sarhan announced in a bourse statement on Tuesday.

"The key demographics we target are individuals lacking access to traditional financial services. This lack provides an opportunity to incorporate a substantial number of Egypt’s unbanked population into the formal financial system in a way that accords with the CBE’s financial inclusion strategy and helps elevate the Egyptian economy," Sarhan commented.

In July, the CBE issued rules for licensing digital banks in Egypt.

Sarhan stated that the company is also studying various investment opportunities in Saudi Arabia in coordination with the Public Investment Fund (PIF).

He added that the company expects to launch its office in the kingdom in the coming months.

According to the latest financial statement, E-Finance achieved a 37.5 percent year-on-year surge in revenue during the first half of 2023, recording EGP 1.7 billion.

Egypt is taking serious steps toward digital transformation and financial inclusion.

In 2022, the CBE launched its financial inclusion strategy for 2022-2025 to promote financial inclusion in the country.

Financial inclusion rates improved in Egypt between 2016 and 2022 by 147 percent.