UAE’s Mal Secures Record $230M Seed to Revolutionise Islamic Fintech

Editorial Team

Last updated 13-01-2026

3 min

UAE-based startup Mal secured a $230 million seed round, the region's largest ever.

Led by BlueFive Capital, the funding supports Mal's AI-built Islamic finance platform ambitions.

Mal is seeking regulatory approvals, aiming to reach underserved Muslims and others globally.

Plans include a 2026 platform launch and market expansion, focusing on transparency and ethics.

Their success hinges on execution, as they aim to revolutionise traditional Islamic finance.

The fintech scene in the region just had one of those moments where everyone sits up a little straighter. The UAE-based startup Mal, which positions itself as the world’s first AI‑built Islamic finance platform, has secured a seed round worth 230 million dollars — the biggest early-stage raise ever recorded across the Middle East and Africa. When I first heard the figure, I actually thought I’d misread it… but no, it’s spot on.

The round was led by BlueFive Capital, a global investment platform managing more than 4 billion dollars in assets and headed by a former Investcorp executive. A mix of strategic backers and family offices also joined in, which usually signals that people see more than just a shiny pitch deck. And believe it or not, Mal is still in its pre-launch phase — no banking licence yet, no financial services licence either, though the team is actively chasing regulatory approvals in several markets.

Mal’s ambition is huge: reaching nearly two billion Muslims worldwide, plus anyone underserved by traditional banking. The idea is to bridge a gap many people know too well. As the company’s founder, Abdullah Abu Sheikh, put it, consumers in several markets end up choosing between slick digital tools that don’t reflect their values, or value-aligned institutions that feel a bit… well… stuck in another era. Mal wants to scrap that compromise through a single digital platform built around transparency, ethics and trust.

I reckon the timing is interesting. At Arageek, we often hear from early-stage founders who feel that building anything compliant with Islamic finance can be a bit of a faff, especially when paired with emerging tech. So seeing such a massive seed round — before launch, no less — might just shake up the landscape and push others to try bolder ideas. On the flip side, raising big doesn’t automatically mean executing big; the real test begins now.

The company plans to roll out its platform in 2026, with the fresh funding earmarked for product development, securing the remaining regulatory licences, and kicking off its market expansion strategy. If they manage to deliver what they promise, a lot of people in underserved communities could be chuffed to bits. And if not… well, that’s the startup game, you know?

🚀 Got exciting news to share?

If you're a startup founder, VC, or PR agency with big updates—funding rounds, product launches 📢, or company milestones 🎉 — AraGeek English wants to hear from you!