AI Fintech Funding Alert

Mal: AI-Native Islamic Digital Bank Secures Record $230M Seed Funding

• ByStartupStory     |    January 14, 2026

In a historic move for the global fintech landscape, Abu Dhabi-based startup Mal has successfully closed a $230 million seed funding round. Announced on January 13, 2026, this investment marks the largest seed-stage financing ever recorded in the Middle East, Africa, and North Africa (MENA) region.

The funding signals a massive bet on the world’s first “AI-native” Islamic digital bank, designed to modernize the $7 trillion Islamic finance sector for the world’s 2 billion Muslims and underbanked communities.

The Vision: Intelligence Meets Ethics

Founded in 2025 by serial entrepreneur Abdallah Abu-Sheikh—the former CEO and co-founder of the regional super-app Astra Tech—Mal aims to eliminate the compromise between modern digital convenience and Sharia-compliant values.

Unlike traditional banks that layer technology onto legacy systems, Mal is built on an AI-native infrastructure. This means artificial intelligence is embedded into the core banking workflows, from automated Sharia-compliant contract generation to hyper-personalized, interest-free financial planning.

“Islamic finance is a $7 trillion space with no single global banking leader. With Mal, we aim to bridge that gap and bring cutting-edge fintech solutions to every underserved community globally.”

— Abdallah Abu-Sheikh, Founder of Mal.

Strategic Backing & “Global-First” Leadership

The record-breaking round was led by BlueFive Capital, a global investment platform managing over $4 billion in assets, alongside a consortium of strategic investors and prominent regional family offices.

To execute this ambitious vision, Mal has assembled a “dream team” of digital banking veterans, including former senior executives from global neobank giants Revolut and Nubank. This leadership mix combines high-growth digital banking expertise with a deep understanding of ethical financial principles.

Feature	Mal’s Digital Proposition
Core Architecture	AI-native from day one (not an add-on).
Target Audience	2 billion Muslims and global underbanked populations.
Market Focus	Starting in the UAE/Middle East, expanding to Asia (Indonesia, Pakistan).
Compliance	Built-in, automated Sharia-governance.

The 2026 Roadmap

While Mal currently operates in a pre-launch phase and is actively pursuing regulatory licenses, the $230 million capital injection will be deployed across three primary pillars:

1. Regulatory Licensing: Navigating the multi-stage authorization process in the Abu Dhabi Global Market (ADGM) and other key jurisdictions in Asia.

2. Product Acceleration: Finalizing the mobile-first platform, focusing on seamless onboarding and AI-driven budgeting tools.

3. Global Rollout: Preparing for a phased launch later in 2026, targeting markets with high Muslim populations and low financial inclusion, such as Indonesia, Pakistan, and Egypt.

Why It Matters

The scale of this seed round reflects a “perfect storm” in the fintech sector: the maturity of AI, the massive untapped potential of Sharia-compliant wealth, and the proven track record of a founder who has previously scaled platforms to over 150 million users. As Mal prepares for its 2026 debut, it stands poised to become the “Revolut of the Islamic World.”

Follow Startup Story