Kuwait Investment Authority-backed Raqami Islamic Digital Bank (RIDB) plans to begin operations in Pakistan next month with a $100 million investment, Bloomberg reported, marking another Gulf-backed entry into the country’s financial sector.
The lender will become Pakistan’s first fully digital Shariah-compliant bank, offering online financing, savings, and payment services to individuals and small and medium-sized enterprises, with a focus on financial inclusion for underserved segments.
“Kuwait Investment Authority-backed Raqami Bank is set to launch in Pakistan with a $100 million investment,” Finance Adviser Khurram Schehzad said in a post on X, adding that the move reflected growing confidence in Pakistan’s economic reforms and improving outlook.
RIDB received a no-objection certificate from the State Bank of Pakistan in 2024 and has completed its pilot phase ahead of a planned commercial launch in February, according to people familiar with the matter.
The Karachi-based digital lender plans to invest $100 million over five years, targeting at least 1 million customers within 3 years.
Chief executive Umair Aijaz said the bank would focus on small businesses, freelancers, and other segments that remain underserved by traditional lenders.
Raqami has already invested around 8 billion rupees ($28.6 million) to reach the launch stage, with the remaining capital earmarked for technology infrastructure, cybersecurity, and talent acquisition.
The bank is targeting break-even within four years, Aijaz said.
The bank has entered into partnerships to strengthen its digital payments infrastructure, including an agreement with Euronet Pakistan to support card management, payment switching, e-commerce acquiring, ATM services, and fraud management.
The launch comes as Pakistan seeks to attract foreign investment, particularly from Gulf sovereign wealth funds, to shore up growth after years of macroeconomic stress.
The country’s banking sector remains one of the more resilient parts of the economy, supported by strong capital buffers and earnings boosted by high interest rates, though private-sector credit growth has remained muted.
Earlier this month, Bank Islami launched Pakistan’s first Shariah-compliant QR payment gateway, highlighting growing competition and innovation in the Islamic digital banking space.
RIDB’s entry underscores rising Gulf interest in Pakistan’s digital and Islamic finance sectors, where low penetration and a large unbanked population offer long-term growth potential.
However, sustained success will depend on execution, cybersecurity resilience and the pace of broader economic stabilisation.