UAE’s Mashreq enters Pakistan with shariah-compliant digital bank

Mashreq Bank Pakistan will operate as a mobile-first, Shariah-compliant digital bank
 

UAE’s Mashreq Bank launches full scale operations in Pakistan 

UAE-based Mashreq Bank has launched its first full-scale international digital banking platform outside the Emirates, establishing a Shariah-compliant retail bank in Pakistan. The move is being hailed as the beginning of a new era in the country’s banking sector.

Mashreq Bank Pakistan will operate as a mobile-first, Shariah-compliant digital bank, offering services for both individuals and small and medium-sized enterprises (SMEs).

To mark the launch, the Pakistan Banks Association (PBA) hosted a reception in Islamabad, attended by senior government officials, banking leaders, parliamentarians, diplomats, investors, and business executives. Distinguished guests included Mashreq Chairman Abdul Aziz Al Ghurair, Group CEO Ahmed Abdelaal, and members of the bank’s global leadership team.

 

Read More     Mashreq launches pilot operations as Pakistan’s first digital retail bank


Government and SBP welcome entry

Minister of State for Finance Bilal Azhar Kayani, in his keynote remarks, said Mashreq’s entry comes at a critical time as Pakistan accelerates its transition to a digital and cashless economy. He highlighted Prime Minister Shehbaz Sharif’s vision for financial modernization and praised Mashreq’s global leadership in remittances, cashless payments, and Shariah-compliant banking.

He also underscored the vital contribution of the banking sector to Pakistan’s economy, noting that in 2024 banks paid Rs856 billion in income tax and over Rs1.5 trillion in total taxes, despite facing an effective tax rate of 55–59% — one of the highest in the region.

SBP Governor Jameel Ahmed welcomed Mashreq’s entry as a “milestone” that aligns with the central bank’s push for innovative, transparent, and consumer-friendly banking practices. He confirmed that SBP has already awarded five digital banking licences, with operations expected to begin by year-end.

Industry voices and inclusion
In his address, PBA Chairman Zafar Masud emphasized the banking industry’s role in supporting SMEs and praised Mashreq for driving innovation beyond conventional banking. It was highlighted that Mashreq employs 450 Pakistanis across its network, 43% of whom are women.

 

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Mashreq CEO Ahmed Abdelaal described the launch as part of the bank’s global digital transformation journey. “Banking is about building bridges. We are here to serve households, entrepreneurs, and businesses alike, and to help shape a healthier financial ecosystem in Pakistan,” he said.

A milestone for digital banking
Speakers noted that this marks the first international deployment of Mashreq’s award-winning digital banking platform, underscoring Pakistan’s growing role as a frontier for digital financial services. Known for its customer-centric approach and commitment to financial inclusion, Mashreq’s expansion is expected to boost investor confidence and deepen cross-border cooperation.

The ceremony concluded with the presentation of souvenirs to Mashreq’s leadership, SBP Governor Jameel Ahmed, and Minister Bilal Azhar Kayani.

Source: Pakistan Observer

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