ISLAMABAD: Pakistan’s Finance Adviser Khurram Shehzad on Friday said Kuwait Investment Authority–backed Raqqami Islamic Digital Bank (RIDB) was set to invest $100 million in the South Asian country by launching operations in February this year.

The bank will be Pakistan’s first fully digital Shariah-compliant bank, according to its website. It offers online financing, savings, and payments to individuals and small-medium enterprises, with a focus on financial inclusion for underserved segments.

The development comes as Pakistan seeks foreign investment, particularly from Gulf nations, to bolster its economy and stabilize its finances. In 2024, the State Bank of Pakistan had issued a no-objection certificate to RIDB.

“Kuwait Investment Authority–backed Raqqami Bank set to launch in Pakistan with a $100 million investment,” 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 Raqqami was backed by the State of Kuwait’s sovereign wealth fund, a development he described as a sign of rising investor confidence in Pakistan.

It also underscores strengthening investment ties between Pakistan and Kuwait, particularly in the financial and digital economy sectors, he added.

Earlier in January, Bank Islami launched Pakistan’s first Shariah-compliant QR payment gateway enabling real-time online payments allowing customers to pay instantly from their bank accounts and enabling merchants to receive payments securely through a smooth checkout experience.