JAKARTA – A Dubai-based agricultural technology company has closed a significant Islamic finance agreement that could reshape how food commodities flow across the Middle East, addressing critical supply chain vulnerabilities that have plagued the Gulf region for years.

Revolutionary Funding Structure

Maalexi, a digital platform specializing in cross-border agricultural trade, has obtained a $20 million Sharia-compliant financing arrangement from Amwal Capital Partners in late August 2025. The deal represents a breakthrough in applying Islamic banking principles to agricultural supply chain finance, with an innovative structure that uses inventory and accounts receivable as collateral within UAE storage facilities.

The financing begins with a $5 million initial deployment, utilizing proprietary blockchain technology to monitor risk exposure continuously. This real-time tracking system enables rapid processing of smaller transactions while maintaining strict compliance with Islamic banking regulations prohibiting interest-based lending.

Addressing Gulf Food Dependencies

The timing of this financial injection reflects urgent regional concerns about food security across the Gulf Cooperation Council nations. These countries currently import approximately 85% of their food requirements, representing an annual expenditure of $68 billion and creating significant vulnerability to global supply disruptions.

The UAE alone processes $24 billion worth of food imports annually, with four-fifths subsequently redistributed throughout the region. This massive trade flow has historically favored large corporations, leaving small and medium-sized enterprises—which represent 90% of global agricultural businesses—controlling merely 30% of international food trade.

Maalexi’s platform specifically targets this imbalance by connecting verified smaller enterprises directly with wholesalers and exporters, eliminating traditional intermediaries that often create bottlenecks and inflate costs.

Technology-Driven Solutions

The company’s approach integrates several advanced technologies to modernize antiquated food trading systems. Artificial intelligence algorithms evaluate creditworthiness and assess quality risks, while Internet of Things sensors provide real-time product monitoring throughout the supply chain. Blockchain technology secures all transaction documentation and enables automated contract execution.

These technological innovations have generated substantial growth for Maalexi since its 2021 establishment by Dr. Azam Pasha and Rohit Majhi. The company reported 60% monthly growth rates throughout 2023 and has facilitated the procurement of millions of kilograms across 70 different food categories from 27 countries.

Strategic Partnership Network

The recent funding builds upon a series of strategic alliances that Maalexi has cultivated over the past 18 months. In early 2024, the company secured $3 million from venture capital firms including Global Ventures and Rockstart. Subsequently, partnerships with Etihad Credit Insurance provided risk mitigation services, while an agreement with DP World granted access to temperature-controlled storage at the prestigious Jebel Ali Port facility.

A separate $3 million debt facility from Citibank in January 2025 further expanded the company’s operational capabilities, particularly in artificial intelligence-driven risk assessment systems.

Regional Policy Alignment

Maalexi’s expansion coincides with ambitious national food security initiatives across the Gulf region. The UAE’s National Food Security Strategy 2051 aims to position the country as the global leader in food security rankings by mid-century. Similarly, Saudi Arabia’s Vision 2030 emphasizes agricultural self-sufficiency, while Qatar has achieved notable progress in domestic food production through its own strategic framework.

Dr. Pasha emphasized the alignment between his company’s mission and regional policy objectives: “This financing facility represents a transformational opportunity to construct intelligent supply networks that serve thousands of smaller enterprises while strengthening food security throughout the Gulf region.”

Fadi Arbid from Amwal Capital Partners described the partnership as strategically positioned to “revolutionize traditional industry practices through innovative financial solutions.”

Market Impact and Future Prospects

The platform’s emphasis on small and medium enterprises addresses a critical gap in regional food systems. By enabling direct market access and reducing transaction costs, Maalexi is democratizing participation in cross-border food trade. The company’s digital warehousing solutions, launched in 2024, allow enterprises to execute trades within seconds rather than the weeks typically required through conventional channels.

Looking ahead, Maalexi plans to expand into origin-market procurement through partnerships with farmer cooperatives and producer organizations. The company is also developing tokenized agricultural assets that could enable instantaneous settlement systems, further reducing transaction friction.

Challenges and Opportunities

Despite its rapid growth, the company faces several operational challenges. Sharia-compliant and halal certifications require extensive auditing processes that can burden smaller enterprises with significant costs. Additionally, maintaining end-to-end halal compliance throughout complex international supply chains demands sophisticated technology infrastructure and careful monitoring to prevent cross-contamination.

However, these challenges create opportunities for innovation. The growing global halal food market, valued in the trillions, presents enormous potential for technology platforms that can efficiently navigate religious compliance requirements while maintaining competitive pricing.

For Gulf consumers, increased participation by smaller enterprises promises greater product diversity and more competitive pricing. For regional policymakers, supporting such platforms accelerates progress toward food security objectives while attracting foreign investment in critical infrastructure sectors.

The success of Maalexi’s Sharia-compliant financing model could establish a template for similar ventures across the Muslim world, where traditional banking limitations have often constrained agricultural development. As climate change and geopolitical tensions continue threatening global food systems, innovative financial solutions for agricultural supply chains become increasingly vital for regional stability and economic development.

Original Article:

Halal Times. (2025, August 29). UAE’s Maalexi Powers GCC Food Security with Sharia Facility. Retrieved from https://www.halaltimes.com/uaes-maalexi-powers-gcc-food-security-with-sharia-facility/