Mal, an AI-driven Islamic fintech, raises a record $230M seed round, backing expansion across MENA and South Asia’s fast-growing Islamic finance markets.
A fintech founded by serial entrepreneur Abdallah Abu-Sheikh has raised $230 million in seed funding, marking what the company says is the largest seed round ever completed in the Middle East, as investors place a major bet on AI-driven Islamic finance.
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The startup, Mal, is an artificial intelligence–powered Islamic finance and digital banking venture based in Abu Dhabi. The company announced the funding this week, positioning the raise as an early move to capture a share of the global Islamic finance market, which it estimates at around $7 trillion.
“The size of funding is usually related to the size of the opportunity,” Abu-Sheikh said, noting that the sector remains fragmented, with no single global banking leader.
The round was led by BlueFive Capital, with participation from strategic investors and family offices. Mal did not disclose its valuation.
While the company’s initial focus is on the Middle East, Abu-Sheikh said Mal plans to expand into Indonesia, Pakistan, and Bangladesh, which are among the world’s largest Muslim-majority markets by population.
The company is already engaging with regulators in those jurisdictions. “We are trying to open up those markets as quickly as possible,” he said, adding that regulatory approvals will be critical to scaling the platform.
Market observers said Abu-Sheikh’s track record likely played a central role in attracting the huge seed round.
Two of his previous ventures were acquired by UAE-based investment and development group Astra Tech. On-demand home services platform Rizek was bought in 2022, followed by online calling application Botim in 2023.
“Abdallah Abu-Sheikh has already demonstrated an ability to build and scale several technology businesses in the region, and that prior execution significantly compresses investor risk,” said Ryaan Sharif, partner for the GCC at F6 Labs, speaking to AGBI.
“In markets like the Middle East, where scaled fintech outcomes are still relatively rare, proven founders tend to attract disproportionate conviction and capital,” Sharif said.
Fintech remains the most heavily funded startup sector in the Middle East. Companies in the segment accounted for more than half of all venture capital raised in the region in 2025, securing over $4 billion in the 11 months to November, according to industry data.
Sam Marchant, founder of Dubai-based investment firm Forward Pursuit, said the record raise reflected a convergence of founder credibility, talent depth, and market timing.
“The track record and quality of Abdallah Abu-Sheikh as a founder, his ability to recruit top fintech talent, and the scale of the opportunity all contributed to this round,” Marchant said.
Some investors view the timing as favorable for a technology-led Islamic finance platform. Standard Chartered forecasts that global Islamic finance assets will exceed $7.5 trillion by 2028.
“Mal is aiming to be the first mover in AI-driven Islamic banking,” said Lucy Chow, a limited partner at London-based investment firm Pact VC. “No other player is operating at that intersection yet. If it can secure regulatory approval and scale quickly, the growth potential is significant.”
Why Mal Matters to MENA
Mal’s record seed round highlights growing investor confidence in AI-driven Islamic finance, a sector where the Middle East is seeking global leadership. With fintech already the region’s most-funded startup vertical, the deal underscores MENA’s role as a launchpad for Shariah-compliant digital banking, targeting both regional and high-growth Asian markets.
