Mashreq, a Dubai-based global digital bank, is poised to invest up to $100 million in Pakistan by the end of 2025 as it moves to establish a full-fledged retail digital bank. The bank, which is currently in a pilot phase, is focused on revolutionizing the financial sector by transitioning away from traditional brick-and-mortar branches to a fully digital model.
In an exclusive interview with Business Recorder, Mashreq Pakistan CEO Muhammad Hamayun Sajjad detailed the bank’s strategy, which includes a primary focus on digitizing workers’ remittances. Mashreq aims to create a fast, transparent, and seamless financial corridor between the UAE and Pakistan to facilitate the estimated $6.25 billion to $6.50 billion in annual remittances sent by overseas Pakistanis. “We are building a fast, convenient, and transparent financial link between Mashreq Dubai and Mashreq Pakistan to ensure that remittances are received instantly,” Sajjad stated.
The bank’s expansion into Pakistan is built on six decades of international experience. Mashreq has invested over $70 million in its three Pakistani entities—Mashreq Bank (in its pilot phase), Mashreq Global Network, and a branch office for Mashreq Financial Institutions Group. This investment is projected to reach $100 million by the end of the year.
Beyond remittances, Mashreq is also engaged in trade finance. While its current license in Pakistan does not yet permit local trade transactions, Mashreq Dubai continues to handle trade flows with Pakistani banks. The bank plans to expand its local trade services within three to five years of receiving its full license.
Mashreq is also addressing specific market needs with specialized digital platforms. The bank is launching “Mashreq Neo Business,” an app and portal designed specifically for small and medium enterprises (SMEs) to cater to their unique requirements. For individuals, a separate platform, “Mashreq Neo NXT,” will offer supervised banking for minors to promote financial literacy from a young age.
A key to the bank’s success will be its robust cybersecurity framework, which leverages advanced AI for monitoring and fraud detection. Sajjad highlighted the significant opportunity in Pakistan’s digital banking sector, noting that a large portion of the country’s 90-100 million account holders do not use online banking. Mashreq’s digital-only model, which operates remotely with a lean team of 250-300 employees, allows it to be more efficient and cost-effective than conventional banks.
