Mal, a UAE-based digital finance company, has secured USD 230 million in seed funding as it prepares to launch an artificial intelligence-driven Islamic digital bank. The company says the raise is the largest early-stage fintech funding round recorded in the Middle East and Africa.
The funding round was led by BlueFive Capital, with participation from strategic investors and regional family offices. Headquartered in Abu Dhabi, Mal is targeting a 2026 launch for its Islamic finance platform, 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 engagement with regulators and will need to obtain approvals in several jurisdictions before it can operate as a licensed digital bank.
In Abu Dhabi, digital banks seeking authorisation through Abu Dhabi Global Market must undergo a multi-stage approval process overseen by the Financial Services Regulatory Authority. This includes preliminary regulatory engagement, in-principle approval subject to conditions, and final authorisation before commercial operations can begin. Applicants must also secure a commercial licence, establish a local presence, and meet capital, governance, and compliance requirements.
A Category 1 digital banking licence in ADGM requires a minimum base capital of USD 10 million, with higher thresholds depending on the institution’s risk profile. Companies must also demonstrate the capacity to deliver regulated digital financial services. Industry observers note that a 2026 launch timeline could prove 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 ecosystem, which includes banking, payments, and digital financial services. Markets such as Indonesia, Pakistan, Bangladesh, and Egypt, which have large Muslim populations and relatively low levels of financial inclusion, are viewed as potential targets for Islamic fintech expansion.