Pakistani financial firm Raqami Islamic Digital Bank (RIDB) plans to invest $100 million over the next five years as it prepares to start commercial operations in February, becoming the country’s first fully Shariah-compliant digital retail bank, Bloomberg reported.
The Karachi-based lender, backed by the Kuwait Investment Authority, has completed its pilot phase and aims to attract at least one million customers within three years, focusing on small- and medium-sized enterprises, freelancers, and underserved segments.
CEO Umair Aijaz said the bank is “excited to explore the digital banking opportunity in Pakistan, particularly in the SME space, which has seen strong traction globally.”
READ MORE: RIDB, Euronet Pakistan to launch first ‘Islamic Digital Bank’
Raqami has already invested around 8 billion rupees ($28.6 million) to reach the launch phase and plans to channel most of the remaining $100 million into technology, human resources, and information security. The bank is targeting break-even within four years.
RIDB recently entered a partnership with Euronet Pakistan Pvt Ltd to strengthen its digital payment infrastructure, including services such as payment switch, card management, credit cards, POS/e-commerce acquiring, ATM controller, and fraud management solutions.
Aijaz said the partnership will help create an integrated, scalable, and cloud-ready digital banking platform, improving operational efficiency and customer experience.
READ MORE: Raqami sets up Shariah Board as SBP grants NOC
The bank has also established a five-member Shariah Board, chaired by Dr Mufti Muhammad Imran Ashraf Usmani, to ensure all operations and transactions comply with Islamic principles.
Board members emphasized that RIDB would play a crucial role in promoting Shariah-compliant financial services and contributing to Pakistan’s inclusive economic development.
Raqami’s launch comes amid a growing digital banking ecosystem in Pakistan.
The State Bank of Pakistan (SBP) has granted No-Objection Certificates (NOCs) to five aspirants for digital banking licenses, including Easy Paisa, Hugo Bank, KT Bank, Mashreq Bank UAE, and Raqami.
The SBP’s licensing framework, introduced in January 2022, aims to provide full-service banking digitally, without the need for physical branches.
READ MORE: SBP issues NOCs to five applicants for establishing digital bank
In addition to its Islamic banking credentials, RIDB is part of a broader government push to digitize financial services. Nadeem Hussain, RIDB Coach, highlighted that digital transactions now account for around 80% of total retail banking transactions, reflecting Pakistan’s rapidly evolving digital payments landscape.
Chairman Abdullah Al-Mutairi said Pakistan represents a key market for Islamic finance, with a population of 240 million and an Islamic banking industry exceeding Rs 8 trillion as of June 2023, accounting for nearly 20% of the country’s financial sector.
RIDB plans to serve diverse segments, including SMEs, the agriculture sector, blue-collar workers, women, youth, and freelancers, aiming to combine digital innovation with Shariah-compliant financial solutions.
The bank’s operations are expected to complement ongoing reforms and support financial inclusion, offering tailored Islamic banking solutions to a broad customer base while strengthening Pakistan’s digital financial ecosystem.
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