EQIQ Backs Instabank with $3M to Revolutionize Iraq’s Digital Banking Scene

Malaz Madani

Last updated 3-07-2025

2 min

Emirati VC EQIQ invests $3 million in Instabank to boost Iraq's digital banking.

Instabank aims to improve financial inclusion in Iraq using AI and digital technology.

EQIQ plans to double its funding pot to $30 million for tech startups in Iraq.

This investment seeks to modernise Iraq's financial ecosystems and support regional entrepreneurs.

Optimism surrounds the potential for tech-driven banking innovation in Iraq.

It seems the winds of change are blowing steadily through Iraq's financial landscape. Emirati VC fund EQIQ, based in Abu Dhabi, has just pumped $3 million into the Iraqi digital banking startup Instabank, as part of a broader $15 million raise to boost digital banking innovation in the region.

Instabank—or officially, Al-Fawr Digital Bank—was established in 2025 by Hussain Qaragholi, an Iraqi-American banking expert. The firm has set its sights firmly on enhancing financial inclusion across Iraq, using artificial intelligence, sophisticated digital tech and, well... a dash of digital magic, if you ask me. Financial inclusion in Iraq is, let's be frank, a bit behind the curve, so this kind of move is exactly what's needed to shake things up a little.

EQIQ's founding partner, Mohamed Al-Hakim, believes Instabank will play a vital role in their strategy to modernise Iraq's financial ecosystems. And believe it or not, EQIQ isn't planning to slow down anytime soon. Based out of Abu Dhabi Global Market (ADGM), the VC firm recently announced it's raising the bar, planning to double its funding pot from $15 million up to $30 million to further invest in tech startups around Iraq.

As regular readers of Arageek would know, we're big champions of anything that gives the region's startups a fighting chance on a global stage. Investments like this are spot on, bridging gaps and helping entrepreneurs across the MENA region step out from the shadows.

On the flip side, I reckon we've yet to see if this substantial injection will translate into meaningful long-term changes for Iraqi banking customers, but I'm cautiously optimistic. This partnership could well mark a major shift towards tech-driven innovation, something that’s definately overdue in the region.

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