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Kuwait-backed Raqami Islamic Digital Bank launches in Pakistan

Pakistan has granted a commercial license to Kuwait-backed Raqami Islamic Digital Bank, marking the Gulf nation’s entry into the country’s growing digital finance sector and highlighting efforts by both sides to deepen bilateral economic cooperation.

By The South Asia Times

ISLAMABAD - Prime Minister Shehbaz Sharif on Tuesday welcomed the launch of Raqami Islamic Digital Bank, describing it as a landmark development for Pakistan’s evolving financial landscape and a step forward in strengthening economic relations with Kuwait.

Speaking at the licensing ceremony in Islamabad, Sharif emphasized that longstanding political and cultural ties between the two countries should be reinforced through trade, investment, and financial collaboration. “Pakistan and Kuwait are brotherly countries bound by decades of strong relations,” he said, adding that expanding economic partnerships would help the relationship “grow from strength to strength.”

Raqami becomes Pakistan’s third licensed digital retail bank and is expected to promote financial inclusion while offering fully Shariah-compliant services. Officials believe digital Islamic banking can modernize the country’s financial ecosystem by leveraging technology while adhering to religious principles.

The Kuwaiti ambassador described the bank’s launch as a tangible reflection of the close partnership between the two nations, noting Kuwait’s continued interest in expanding cooperation across trade, investment, and financial services.

Abdullah Al-Mutari, chairman of Raqami’s board, thanked the Pakistani government and the State Bank for facilitating the process, while CEO Umair Ajaz said the institution aims to deliver accessible, efficient, and customer-focused digital banking solutions aligned with Pakistan’s broader financial inclusion goals.

The ceremony was attended by senior government officials, the acting governor of the State Bank of Pakistan, Kuwait’s ambassador Nassar Abdul Rahman Jasser, and executives from the financial sector.

The entry of a Kuwait-linked digital bank comes as Pakistan seeks greater foreign investment to support economic stability and accelerate innovation in its banking industry, particularly in technology-driven and Islamic finance segments.