Abu Dhabi-based fintech startup Mal has raised $230 million in a seed round, marking the largest of its kind in the Middle East and Africa. The funding, led by BlueFive Capital, will fuel the development of an AI-native Islamic digital bank targeting the underserved global Muslim population and underbanked communities.
A New Approach to Islamic Finance
Mal aims to disrupt the $7 trillion Islamic finance market, which currently lacks a dominant global player. The bank will offer mobile-first financial tools, leveraging artificial intelligence to serve over 2 billion potential customers. This represents a significant opportunity, as traditional banking systems often fail to meet the specific needs of this demographic.
Leadership and Market Strategy
Founded by serial entrepreneur Abdallah Abu-Sheikh, Mal boasts a leadership team with experience from leading digital banks like Revolut and Nubank. The company plans a phased launch beginning in 2026, prioritizing key markets in the Middle East and Asia where demand for accessible financial solutions is high.
The Significance of This Investment
The sheer size of this seed round — $230 million — is exceptional. It signals strong investor confidence in both the AI-driven business model and the untapped potential of the Islamic finance sector. Mal’s success hinges on securing regulatory approvals in multiple markets and successfully scaling its platform.
Founder Background: A Track Record of Success
Abu-Sheikh has a proven history of building and exiting successful ventures, including renewable energy firm LUX Development Partners, digital marketplace Rizek, and EV manufacturer Barq EV. His previous company, Astra Tech, secured a $500 million investment and acquired leading fintech and communication platforms.
What This Means for the Future
Mal’s entry into the market could force incumbents to adapt or risk losing market share. The AI-native approach promises greater efficiency, personalization, and financial inclusion.
This funding round confirms that the future of finance is increasingly digital, AI-driven, and focused on serving previously overlooked populations.
Mal’s ambition is clear: to become the global leader in Islamic digital banking. The next two years will be critical as the company navigates regulatory hurdles and prepares for its full launch.
