ISLAMABAD: Kuwait Investment Authority-backed Raqami Islamic Digital Bank (RIDB) is set to begin operations in Pakistan next month with a $100 million investment, Pakistan’s finance adviser said on Friday, marking another Gulf-backed entry into the country’s banking sector.
Raqami will become Pakistan’s first fully digital Shariah-compliant bank. According to its platform, the bank will offer online financing, savings, and payment services for individuals and small and medium-sized enterprises, with a focus on expanding financial inclusion for underserved segments.
The move comes as Pakistan seeks to attract foreign capital, particularly from Gulf states, to strengthen its economy after years of macroeconomic stress. In 2024, the State Bank of Pakistan issued a no-objection certificate to RIDB, clearing the way for its launch.
“Kuwait Investment Authority-backed Raqami Bank is set to launch in Pakistan with a $100 million investment,” Finance Adviser Khurram Schehzad said in a post on X. “This is a strong vote of confidence in Pakistan’s improving economic outlook and reform momentum.”
Schehzad said Raqami is backed by Kuwait’s sovereign wealth fund and that its entry reflects deepening investment ties between Pakistan and Kuwait, especially in financial services and the digital economy.
The development follows recent momentum in Pakistan’s Islamic and digital finance landscape. Earlier this month, Bank Islami launched the country’s first Shariah-compliant QR payment gateway, enabling real-time account-to-merchant payments through digital channels.
Pakistan’s banking sector remains one of the more resilient parts of the economy, dominated by large lenders with strong capital buffers and profits driven largely by government securities. While elevated interest rates have supported earnings, private-sector credit growth has remained subdued.
