The first digital bank in Iraq is being established with a capital of 100 billion Iraqi dinars, to be subscribed over five years at a rate of 20 billion dinars annually — roughly $15 million per year.
This initiative is being led by the EQIQ Fund, which focuses its investments on fintech, e-commerce, and delivery services.
In May 2024, the Central Bank of Iraq issued new regulations for licensing digital banks, marking a critical step toward a real digital transformation in the Iraqi banking sector.
Mohamed Al-Hakim, co-founder of EQIQ, stated that the fund was launched in 2023 at Abu Dhabi Global Market with an initial size of $15 million, later expanded to $30 million, with a focused strategy on the Iraqi market.
So far, the fund has invested $8.5 million in five Iraqi startups, allocating about 80% of its capital to the three key sectors, while reserving the remaining 20% for promising opportunities involving inspiring founders or innovative solutions.
Al-Hakim emphasized that the newly issued banking regulations will allow digital banks to operate under the modern Iraqi Banking Law, which supports innovation and provides a robust infrastructure for digital payments. However, he noted that strong investment institutions are still essential to drive real digital transformation in Iraq’s financial landscape.
