Abu Dhabi-based fintech startup Mal has received in-principle approval from the Central Bank of the UAE to launch what it describes as the world’s first AI-native Islamic digital bank. The approval marks a major step for the UAE’s growing fintech industry and allows the company to move closer to launching a fully licensed Shariah-compliant banking platform in the country.
The approval comes only months after Mal raised $230 million (AED844 million) in seed funding, making it one of the largest fintech seed rounds in Middle East and Africa history. The funding has positioned the startup among the region’s strongest new digital banking players as competition in the Gulf’s fintech sector continues to grow rapidly.
The UAE has become a leading fintech hub in recent years due to government-backed innovation programs, modern regulations, and increasing demand for digital financial services. Mal said its platform will operate within a larger financial ecosystem that includes digital banking, payments, wealth management, and embedded finance solutions.
The company plans to focus on the global Islamic finance market, which is currently valued at more than $7 trillion. According to Mal, the goal is to modernize Islamic banking through artificial intelligence and advanced technology while maintaining ethical and Shariah-compliant financial principles.
Abdallah Abu-Sheikh, Founder and CEO of Mal, said the approval reflects strong trust from UAE regulators. He stated that the company is committed to building a world-class Islamic digital bank from the UAE with a focus on ethical finance and innovation.
Abu-Sheikh also highlighted the company’s ambition to transform Islamic finance using modern infrastructure and AI-powered banking services. He said the Islamic finance industry represents a massive opportunity that has not yet been fully explored with advanced technology.
Founded in 2025 and headquartered in Abu Dhabi, Mal describes itself as an AI-native financial services company focused on serving Muslims and underbanked communities around the world. The company says its platform combines regulatory compliance with AI-driven personalization to deliver more accessible and efficient financial products.