CBUAE grants Mal in-principle approval to set up licensed bank

By Aarav Garg

Abu Dhabi-based Mal said it has received in-principle approval from the Central Bank of the UAE to establish a licensed bank in the country, in a move that reflects how the UAE’s digital banking sector continues to attract new entrants as regulators expand support for financial innovation and Islamic finance.

The approval moves the company closer to launching what it describes as a Shariah-compliant digital financial services platform spanning banking, payments, wealth management and embedded finance. The proposed platform will target the global Islamic finance market, which is estimated to exceed $7 trillion.

Abdallah Abu-Sheikh, CEO and Founder of Mal, commented, “We are extremely thrilled by the trust of the Central Bank to give us our in-principle approval for a banking license. We are committed to working hard to launch the world’s leading Islamic digital bank from the UAE with a mission rooted in ethical finance ”

The development follows Mal’s previously announced $230 million seed funding round, which the company said was among the largest FinTech seed raises in the Middle East and Africa region. The capital position could give the company flexibility to invest in digital banking infrastructure, customer acquisition and product expansion as it prepares to enter the market.

The announcement also reflects broader momentum in the UAE’s FinTech sector, where regulators have increasingly positioned the country as a hub for digital finance, virtual assets and next-generation banking services. Mobile-first adoption, supportive regulation and strong cross-border business flows continue to attract investment into the region’s financial technology ecosystem.

The approval remains subject to final regulatory clearances and licensing requirements before Mal can formally begin banking operations in the UAE.