The role of financial literacy in achieving financial inclusion: A theoretical and applied study in Arab Countries for the period (2004-2020)
Keywords:
financial inclusion, financial depth, financial literacyAbstract
This paper contributes to the study of the role of financial literacy in promoting financial inclusion by examining the relationship between the composite financial inclusion index (IFI) and the literacy rate, and the percentage of the population between the ages of 25 and64 years, which represents the variable of financial literacy and its relationship to financial depth and financial literacy between the sexes of the selected Arab countries during the period from 2013 to 2020. Using a multiple linear regression model according to the method of least squares (OLS) under panel data (panel), based on models of fixed and random effects, and to choose the appropriate model for the study, we conducted the Hausman test. The results of the tests showed a positive relationship between financial inclusion and financial literacy, regardless of gender, as well as a positive relationship with financial depth. A negative relationship was observed with GDP, indicating the contribution of financial literacy in promoting financial inclusion in the studied countries. This requires better financial education.
Downloads
References
World Union of Arab Bankers. (2025). Financial Inclusion in the Arab World. https://wuab.org/magazine-articles/financial-inclusion-in-the-arab-world/ .
afi. (2024). Digital Financial Services Working Group (DFSWG). https://www.afi-global.org/working-groups/dfs/ .
Ahmed, A. A. A., & Al-Nuaimi, Z. A. (2022). أثر العمق المالي في تعزيز الشمول المالي في بعض البلدان العربية. Mağallaẗ Tikrīt Li-l-ʻulūm al-Idāriyyaẗ Wa-al-Iqtiṣādiyyaẗ, 18(57, 1), 380–400. https://doi.org/10.25130/tjaes.18.57.1.20
Alqam, M. A., & Hamshari, Y. M. (2024). The impact of financial literacy on financial inclusion for financial well-being of youth: evidence from Jordan. Discover Sustainability, 5(1). https://doi.org/10.1007/s43621-024-00704-6
Annamaria, L., & Olivia, S. M. (2007). Financial Literacy and Retirement Preparedness: Evidence and Implications for Financial Education. business economics , 35-44.
Anriza, W. N., & Marlya, F. (2019). Analisis Faktor Kesadaran Literasi KeuanganSyariah Mahasiswa Keuangan dan Perbankan,. Jurnal Equlilibrium: Journal Ekonomi Syariah, Vol. 7 No. 1 , 45.
Antonia, G., Theres, K., & Lukas, M. (2018). Does financial literacy improve financial inclusion? Cross country. world devlopement .
Bassey, I. (2023). Financial Literacy in Today's Global Market "Financial Inclusion and Financial Literacy". london : intech open .
Chehade, N. (2021, JANUARY 05). Harnessing Fintech in the Arab World: An Opportunity Worth Billions. CGAP.ORG .
Dahlia, I., R. H., & Zuraidah, M. I. (2009). A Study on Financial Literacy of Malaysian Degree Students. Cross-Cultural Communicatio .
Erik, F., Harish, N., & Matthew, S. (2023). FINTECH AND THE FUTURE. Washington: The World Bank Group.
Falak, K., Muhammad, A. S., & Salma, I. (2022). Role of financial literacy in achieving financial inclusion: A review, synthesis and research agenda. Cogent Business & Management , 1-37.
Financial Inclusion In Selected Asian Countries: Evidence Using Dynamic Panel Data Analysis"2015DOI: 10.13140/RG.2.1.4366.0008
Hogarth, J., Christoslav E, A., & Jinhook, L. (2005). “Who Has a Bank Account? Exploring Changes Over Time, 1989-2001,”. Journal of Family and Economic , 7-30.
Ibor, B. I. (2023). Financial inclusion and financial literacy. IntechOpen. https://doi.org/10.5772/intechopen.1003855
Kumar, N. (2024, OCTBER 14). 43 Fintech Statistics (2025) – Adoption Rate & Growth. DemandSage .
Mark, T. (2011). Measuring Financial Capability and its Determinants Using Survey Data,. Social Indicators Research , 279-314.
Mohammad, A. R., & Yousef, A. (2025). THE ROLE OF FINANCIAL TECHNOLOGYIN ENHANCING FINANCIAL INCLUSION:A REGULATORY PERSPECTIVEON CURRENT INDUSTRY TRENDS. corporate & Business Strategy Review / Volume 6, Issue 1, 2025 .
Muhammed, B. A., Murugesan, S., & Satyanarayana, P. (2024). FinTech and Financial Inclusion: Exploring the Mediating Roleof Digital Financial Literacy and the Moderating Influence ofPerceived Regulatory Support. Journal of Risk and Financial Management , 1-20.
Puneet, B., & Yajulu, M. (2013). Financial literacy and its determinants. International Journal of Engineering, Business and Enterprise Applications, .
Rezk, W. .., & Mona, A. ,. (2022). financial technology Fintech in Arab countries“Opportunities and Challenges “. CONTEMPORAINE EGYPTE'L , 7_30.
Salem, S. S. (2023). Financial Literacy role in achieving Financial Inclusion; Evidence from Egypt. https://doi.org/10.21608/sjrbs.2023.232694.1524
Samanwita, M., & Chandan, K. S. (2025). Impact of Sustainable Financial Literacy and Digital Financial Inclusion on Women's Sustainable Entrepreneurial Intention. Corporate Social Responsibility and Environmental Management .
Sanjib, D. (2016). FINANCIAL LITERACY : MEASUREMENTAND DETERMINANTS. EPRA International Journal of Economic and Business Review .
Sarma, M. (2005). Measuring financial inclusion. Economics Bulletin, Volume 35, Issue 1, , pages 604-611.
Serhan, C. (2024). Promise (Un)kept? Fintech and Financial Inclusion. International Monetary Fund .
United Nations, E. N. (2023). FINTECH AND DIGITAL FINANCE FOR FINANCIAL INCLUSION. POLICY BRIEF , 1-14.
Zakaria, E., & Elouaourti, I. (2024). Financial Technologies for All MENA citizens: Tackling barriers and promoting inclusion. Regional Science Policy & PracticeVolume 16, Issue 6 .
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2026 The International tax journal
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
