UAE startups continue to roll out mega rounds in 2026: An Abu Dhabi-based AI-powered Islamic digital bank that just came out of stealth mode has closed a USD 230 mn seed round, led by Abu Dhabi-based BlueFive Capital, according to a press release. The investment in Mal marks the largest of its kind in the MENA region.

Where will the funds go? The capital will help the startup get off the ground and accelerate product development along with licensing and regulatory approvals. The startup, founded by Abdallah Abu Sheikh (LinkedIn), who also founded Astra Tech and was previously CEO at Botim, is set to launch as a banking platform this year and is looking to fill a gap with underbanked customer segments. It’s looking to roll out its services in phases, with the focus on the UAE first, before it decides to scale into other regional and Asian markets.

Alongside Abu Sheikh, the team includes several executives with leadership experience at Revolut and Brazilian neobank Nubank, the statement said.

Our take

The seed round comes as megarounds continue to rise in volume in the UAE, both across later-stage mega-transactions and earlier-stage, non-mega transactions. UAE-based XPanceo’s USD 250 mn Series A round and Airalo’s USD 220 mn Series C ranked third and fourth among the largest EVM transactions by funding in 2025.

It also comes as fintech maintains its position as the most popular sector for funding in the region. The sector took the lead in terms of funding last year, accounting for nearly a third of the region’s total funding.

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