Mal, a UAE-based digital finance company, has secured USD 230 million in seed funding as it prepares to develop an artificial intelligence-driven Islamic digital bank.
The raise is being positioned as the largest early-stage fintech funding round recorded in the Middle East and Africa, according to information disclosed by the company. The funding round was led by BlueFive Capital, with additional backing from strategic investors and regional family offices. Mal is headquartered in Abu Dhabi and plans to roll out its Islamic finance platform in 2026, with a stated focus on underserved customers and Muslim consumers across multiple markets.
Despite the size of the funding, Mal does not currently hold a banking or financial services licence. The company is in the early stages of engaging with regulators and will need to secure approvals in several jurisdictions before it can operate as a digital bank.
Regulatory developments may shape Mal’s launch timeline
In Abu Dhabi, digital banks seeking authorisation through the Abu Dhabi Global Market must complete a multi-stage approval process overseen by the Financial Services Regulatory Authority. This includes preliminary engagement, in-principle approval subject to conditions, and final authorisation before commercial operations can begin. Companies must also obtain a commercial licence, establish local premises, and meet capital and governance requirements.
A Category 1 digital banking licence in ADGM requires a minimum base capital of USD 10 million, with potential increases based on the firm’s risk profile. Applicants must also demonstrate the capacity to deliver regulated digital financial services. Industry observers note that a 2026 launch could be challenging unless Mal is already advanced in regulatory discussions or opts to test its model through ADGM’s RegLab regulatory sandbox.
Beyond the UAE, Mal is positioning itself within the wider Islamic finance sector, which includes banking, payments, and digital financial services. Markets such as Indonesia, Pakistan, Bangladesh, and Egypt have large Muslim populations with relatively low levels of financial inclusion, making them potential targets for Islamic fintech expansion.
