Mal, an Islamic digital finance company based in the UAE, has raised USD 230 million in seed funding as part of its plans to establish a sophisticated artificial intelligence-driven financial institution.
This round is considered the largest early-stage fintech funding event recorded in the Middle East and Africa, according to the company’s disclosed information. The investment was led by BlueFive Capital with support from key strategic investors and regional family offices. Mal is based in Abu Dhabi and intends to launch its Islamic finance platform in 2026, targeting a wide range of underbanked customers and Muslim consumers across different markets.
Notably, despite the substantial funding, Mal currently lacks a banking or financial services license. The company is in preliminary discussions with regulators and will need multiple approvals before it can commence operations as a digital bank.
Regulatory Challenges May Delay Launch
In Abu Dhabi, companies aspiring to obtain authorisation from the Abu Dhabi Global Market must navigate a complex approval process overseen by the Financial Services Regulatory Authority. This involves stages such as initial engagement, conditional in-principle approvals, and final authorization before any commercial activities can start. Additionally, firms must secure a commercial license, establish local offices, and meet capital and governance requirements.
To earn a Category 1 digital banking license in ADGM, a minimum base capital of USD 10 million is required, with potential increases contingent on the firm’s risk assessment. Appropriate capacity to deliver regulated digital financial services must also be demonstrated. Observers suggest that Mal might face significant hurdles unless it has already advanced significantly in its regulatory discussions or opts for testing through ADGM’s RegLab.
Moving beyond the UAE, Mal is positioning itself within the broader Islamic finance sector, which encompasses banking, payments, and digital financial services. Countries with large Muslim populations and low levels of financial inclusion, such as Indonesia, Pakistan, Bangladesh, and Egypt, represent potential markets for expansion in this field.
