Raqami Islamic Digital Bank (RIDB) plans to invest $100 million over the next five years as it prepares to begin full commercial operations in Pakistan in February, according to a report on Friday.
The Karachi-based digital lender, which is backed by the Kuwait Investment Authority sovereign wealth fund, aims to build a strong presence in Pakistan’s fast-growing digital banking sector. It is targeting at least one million customers within three years, with a particular focus on small- and medium-sized enterprises (SMEs), freelancers and other underserved segments of the economy.
RIDB has recently completed its pilot phase and is now gearing up for a full market rollout. The bank plans to offer a range of Shariah-compliant digital financial services, with digital lending solutions forming a key part of its strategy to reach customers who have traditionally been excluded from the formal banking system.
The development was shared by Bloomberg journalist Faseeh Mangi in a post on X, citing comments from the bank’s management. Chief Executive Officer Umair Aijaz said Pakistan presents strong opportunities for SME-focused digital banking, noting that similar digital-first models have gained significant traction in other markets around the world.
Aijaz said the bank intends to capitalise on rising demand for Islamic banking products delivered through digital platforms, as more consumers and businesses seek convenient, transparent and Shariah-compliant financial solutions. He added that Pakistan’s large unbanked population and growing smartphone penetration make it an attractive market for digital-only lenders.
Raqami’s investment plans reflect broader interest from international investors in Pakistan’s fintech and digital banking space, despite ongoing economic challenges. Digital banks are increasingly seen as a way to improve financial inclusion, support entrepreneurship and enhance access to credit for SMEs, which are considered the backbone of the country’s economy.
With commercial operations set to begin next month, RIDB is expected to compete with other digital and conventional banks by leveraging technology, streamlined processes and Islamic finance principles to attract customers and scale rapidly in the coming years.
