KARACHI: Raqami Islamic Digital Bank (RIDB), a new Karachi-based digital lender backed by the Kuwait Investment Authority sovereign wealth fund, has announced plans to invest $100 million over the next five years as it prepares to commence commercial operations in February.
The bank aims to target at least one million customers within three years, focusing on underserved segments such as small- and medium-sized enterprises (SMEs), freelancers, and other individuals seeking Shariah-compliant digital financial solutions. RIDB has already completed its pilot phase and is moving toward a full market rollout, signaling a major expansion in Pakistan’s digital banking landscape.
The development was shared by Faseeh Mangi on his X account and reported by Bloomberg. According to CEO Umair Aijaz, the bank sees significant potential in Pakistan’s SME-focused digital banking sector. He noted that similar digital banking models have experienced strong growth in other markets, reflecting global trends in financial inclusion and technology-driven lending.
Umair Aijaz emphasized that RIDB intends to leverage its digital platform to provide innovative, Shariah-compliant financial products, including digital lending solutions tailored to the needs of SMEs and freelancers. He highlighted the growing demand for Islamic digital banking services in Pakistan as a key driver for the bank’s strategic focus.
The bank’s entry into the market comes at a time when Pakistan is experiencing rapid digital adoption, with increasing smartphone penetration and a growing appetite for fintech-enabled financial services. By combining Islamic finance principles with a digital-first approach, RIDB aims to offer convenient, accessible, and compliant financial solutions to segments that have historically faced limited access to formal banking services.
The planned $100 million investment over the next five years will support the bank’s technology infrastructure, product development, marketing, and expansion initiatives. The bank also aims to strengthen its digital distribution channels, ensuring seamless onboarding, efficient loan processing, and responsive customer support for its targeted customer base.
With the upcoming launch in February, RIDB is expected to contribute to financial inclusion and support Pakistan’s growing SME sector, which plays a critical role in employment generation and economic development. The bank’s focus on Shariah-compliant digital services aligns with broader trends in Islamic finance and fintech innovation, potentially positioning RIDB as a key player in the country’s evolving digital financial ecosystem.
Overall, Raqami Islamic Digital Bank’s market entry represents a strategic combination of global investment backing, digital innovation, and a focus on underserved customer segments, marking a significant development in Pakistan’s digital and Islamic banking sector.
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