UAE-based Mal paves the way for the launch of an AI-native Islamic digital bank following initial approval and a $230 million funding round
UAE-based Islamic digital bank Mal, built as an AI-native financial platform, has secured initial approval from the Central Bank of the UAE (CBUAE), marking a major milestone ahead of its anticipated commercial launch and paving the way toward becoming a fully licensed Islamic digital bank in the country.
The approval represents the company’s most significant regulatory achievement to date, following what Mal described as an “extremely rigorous and selective” review process. The company believes the UAE offers the ideal launchpad for its global ambitions due to its progressive fintech regulatory environment and rapidly growing adoption of digital financial services and smartphone-based banking.
The regulatory milestone follows Mal’s announcement in January 2026 that it had closed a $230 million seed funding round, described as the largest seed round ever recorded across the Middle East and Africa. The round was led by Abu Dhabi-based investment firm BlueFive Capital, founded by former Investcorp Co-CEO Hazem Ben-Gacem, with an investment focus on financial services companies across the Gulf and Southeast Asia.
Founded in 2025 by entrepreneur Abdullah Abu Sheikh, Mal is building an AI-powered banking and investment ecosystem covering digital banking, wealth management, payments, and embedded finance services. The company aims to capitalize on the rapid expansion of the global Islamic finance market, currently valued at nearly $7 trillion, while addressing the absence of a dominant global Islamic digital banking player.
Mal’s executive team includes professionals with prior experience at major global companies including Revolut, Nubank, Lloyds, Careem, and OKX, reflecting the company’s ambition to build a globally scalable digital financial institution.
According to the company, Mal was not created as a traditional bank layered with AI tools, but rather designed from the ground up as an AI-native bank, with artificial intelligence serving as the core operational infrastructure. This includes AI agents managing compliance operations, credit approvals, fraud detection, and real-time financial guidance, enabling faster processing times, higher operational efficiency, and greater personalization compared to traditional banking models.
