Mal AI-native bank raises record $230 million seed round
BlueFive Capital leads round for Abu Dhabi-based AI-native Islamic bank
#UAE #funding - Abu Dhabi-based AI-native Islamic digital bank Mal has closed a $230 million seed round, the largest Seed round in Middle East and Africa history, as the company prepares for its official launch in 2026. Led by global investment platform BlueFive Capital alongside strategic investors and family offices, the funding will accelerate product development, licensing efforts in multiple markets and go-to-market strategy. Founded by serial fintech entrepreneur Abdallah Abu-Sheikh, Mal is designed as a mobile-first digital bank to serve the world’s 2 billion Muslims and underbanked communities, targeting the $7 trillion Islamic finance space which currently has no single global banking leader.
SO WHAT? - At $230 million raised, this is the largest Seed funding round that we’ve seen in the Middle East and Africa and it is particularly unusual since it sets out to forge a new AI-native business model. Investor confidence likely stems from the leadership team, which includes former executives from digital banking and ecommerce including Lloyds, Revolut, Nubank, Careem and OKX. Mal will launch in phases expanding into key global markets in the Middle East and Asia where there is strong demand for accessible, value-driven financial solutions and a fast-growing Islamic banking sector.
Here are some key points about the funding announcement:
Founded last year, Abu Dhabi-based AI-native Islamic digital bank Mal has closed a $230 million seed round, the largest Seed round in Middle East and Africa history. The funding round was led by global investment platform BlueFive Capital alongside strategic investors and family offices.
Founded by serial fintech entrepreneur Abdallah Abu-Sheikh, Mal is designed as a mobile-first digital bank to serve the world’s 2 billion Muslims and underbanked communities, targeting the $7 trillion Islamic finance space which currently has no single global banking leader.
The funding will accelerate product development, licensing efforts in multiple markets and go-to-market strategy as Mal prepares for its official launch in 2026, currently under development in the pre-launch phase.
The leadership team includes former executives from digital banking platforms Revolut and Nubank, two of the world’s most prominent digital bank success stories, reflecting Mal’s ambition to set a new global benchmark for ethical, intelligent financial services.
Headquartered in Abu Dhabi, Mal will launch in phases expanding into key global markets in the Middle East and Asia where there is strong demand for accessible, value-driven financial solutions with localized offerings tailored to each region’s economic landscape.
Mal is currently in the pre-launch phase and, whilst actively pursuing relevant regulatory approvals across multiple markets, does not yet hold any banking or financial services licence in preparation for its 2026 launch.
BlueFive Capital was founded by Hazem Ben-Gacem, former Co-CEO of alternative investment firm Investcorp, and is based in Abu Dhabi focusing on acquiring stakes in financial services companies across the Global South including Southeast Asia and Gulf Cooperation Council nations.
Mal’s digital platform offers mobile-first tools for everyday financial needs including onboarding, account management, payments and budgeting, powered by AI and engineered for expansion across multiple markets combining intelligence, values and accessibility.
ZOOM OUT - Mal founder Abdallah Abu-Sheikh brings extensive multi-launch, multi-exit entrepreneurial experience from building technology companies in the Middle East. He co-founded LUX Development Partners, a renewable energy company, in 2016, followed by digital marketplace Rizek in 2019 and electric vehicle manufacturer Barq EV in 2021. In March 2022, Abu-Sheikh founded Astra Tech, a UAE-based consumer technology company and technology investment group that secured a $500 million investment from G42 in December 2022 and acquired fintech company PayBy and internet calling platform BOTIM. His earlier renewable energy projects achieved $700 million in assets within three years of entering sub-Saharan Africa, whilst Astra Tech's flagship platform BOTIM now serves over 150 million users worldwide, making Abu-Sheikh one of the region's most accomplished serial entrepreneurs before departing Astra Tech in November 2024 to launch Mal.
[Written and edited with the assistance of AI]