ISLAMABAD: Kuwait Investment Authority-backed Raqqami Islamic Digital Bank is set to begin operations in Pakistan with an initial investment of $100 million, according to a statement by the country’s finance adviser, marking a new Gulf-backed entry into Pakistan’s banking sector.
The bank is expected to launch operations in February and will operate as a fully digital, Shariah-compliant financial institution, offering online banking, payments and financing services for individuals and small and medium-sized enterprises.
Pakistan’s Finance Adviser Khurram Schehzad said the project reflected growing investor interest in Pakistan’s financial sector amid ongoing economic reforms and improving macroeconomic indicators.
Raqqami Islamic Digital Bank is backed by the Kuwait Investment Authority, the sovereign wealth fund of the State of Kuwait. The investment adds to a series of recent Gulf-backed initiatives targeting Pakistan’s banking and digital finance ecosystem.
Pakistan’s central bank issued a no-objection certificate for the bank in 2024, paving the way for its market entry. The launch aligns with broader efforts by authorities to expand financial inclusion through digital banking solutions.
The country has been seeking foreign investment, particularly from Gulf states, as it works to strengthen economic stability following several years of financial stress. Digital banking has emerged as a priority area, supported by regulatory reforms and rising demand for cashless financial services.
Pakistan’s banking sector remains one of the more stable segments of the economy, supported by strong capital buffers, while digital platforms are increasingly viewed as tools to widen access to formal financial services.
