UAE based RegTech startup Qadi has closed a pre seed round led by Incubayt Capital to launch the Middle East’s first sovereign AI regulatory compliance platform, targeting law firms and financial institutions across the GCC.
UAE-based Qadi, a regulatory-technology startup, has officially emerged from stealth mode and announced the closure of its pre seed funding round led by Incubayt Capital, as reported by Wamda. The undisclosed investment will accelerate Qadi’s mission to develop what it calls the Middle East’s first “sovereign regulatory compliance platform,” a system designed to automate and localize complex compliance workflows for regulated industries across the region.
Founded earlier in 2025 by Mohamad El Charif, Qadi’s platform leverages artificial intelligence to translate local laws, policies, and compliance frameworks into programmable rules. The technology aims to help law firms, financial institutions, and government linked organizations automate tasks such as regulatory checks, document reviews, and approval routing all while maintaining strict adherence to regional data sovereignty and jurisdictional laws. According to Startup Researcher, the company’s approach represents an emerging category of AI powered compliance systems tailored specifically for MENA’s complex legal landscape.
Qadi’s core platform functions as an AI-driven compliance layer capable of encoding region-specific regulatory obligations. By embedding national and cross-border rules into decision-making systems, the company seeks to help enterprises mitigate compliance risks while improving operational efficiency. This positioning mirrors a global trend in RegTech and LegalTech, where firms such as Clausematch, ComplyAdvantage, and Cognitiv+ have raised multi-million-dollar rounds to digitize compliance at scale. However, Qadi differentiates itself by focusing on sovereign frameworks offering what Business Today ME calls “region-first compliance intelligence.”
The newly raised funds will be used to expand Qadi’s AI engineering and legal data teams, further develop its product infrastructure, and onboard early adopters in the Gulf Cooperation Council (GCC). Pilot deployments are reportedly underway with a selection of regional financial institutions and corporate law firms testing automated regulatory-check pipelines and contract intelligence modules. Qadi also plans to expand integrations with government compliance systems, positioning itself at the intersection of regulatory modernization and digital transformation across the UAE and Saudi Arabia.
Industry analysts note that the timing of Qadi’s emergence coincides with the GCC’s accelerating push for regulatory digitization. Recent initiatives by UAE’s Ministry of Economy and ADGM’s Digital Lab have fostered innovation in the RegTech sector, paving the way for startups like Qadi to align technology with evolving policy requirements. Regional investment data compiled by MAGNiTT and CB Insights show that RegTech funding in MENA has doubled over the past two years, with early-stage ventures collectively raising more than $30 million in 2024 alone, a figure highlighting both demand and competitive opportunity.
As regulatory compliance becomes a critical enabler for digital economies, Qadi’s “sovereign compliance engine” could set a precedent for how AI is applied in localized legal automation. Similar to how UK-based Clausematch built traction through compliance digitalization in the EU, or how Tookitaki scaled AI-powered anti-money-laundering tools across Asia, Qadi’s focus on jurisdictional governance could help position the MENA region as an exporter of regulatory innovation rather than a consumer of global standards.
