UAE-Based Mal Raises $230M to Build AI-Native Islamic Digital Bank

Abu Dhabi–based fintech startup Mal has raised $230 million in a funding round led by BlueFive Capital, as it prepares to build what it describes as the world’s first AI-native Islamic digital bank.

The company said the funding will be used to accelerate product development, advance licensing processes and support its market entry strategy, with a phased launch planned to begin in the United Arab Emirates. Mal is currently in pre-launch and does not yet hold a banking or financial services licence, nor is it conducting regulated financial activities.

Founded by fintech entrepreneur Abdallah Abu‑Sheikh, Mal is positioning itself to serve Muslim populations and other underbanked communities globally through a mobile-first digital platform. The company is targeting a launch in 2026 and said its longer-term ambition is to expand beyond the UAE into markets across the Middle East and Asia with offerings adapted to local financial and regulatory environments.

The initial funding round brought together a group of strategic investors and family offices from multiple regions. Abu-Sheikh said the raise reflects confidence in the company’s ambition to apply artificial intelligence to Islamic finance at scale, a segment he described as lacking a single global banking leader despite its size.

Mal said its leadership team includes former senior executives from global digital banks such as Revolut and Nubank. The company added that artificial intelligence will be embedded across its products to support decision-making, customer experience and operational efficiency, while aligning services with Islamic finance principles.

As it moves toward launch, Mal said its immediate focus remains on securing regulatory approvals in target markets and finalising its core technology stack ahead of initial customer onboarding in the UAE.