Accra:Bahrain Mumtalakat Holding Company, the nation's sovereign wealth fund, and ARP Group have announced a partnership to establish an AI-based wholesale bank headquartered in Bahrain. This new bank will be supported by blockchain technology, aiming to streamline banking services for clients with cross-border needs.
According to Bahrain News Agency, the Central Bank of Bahrain has granted in-principle approval for the venture, which will not commence regulated activities until final authorization is obtained. The partnership aims to merge Mumtalakat's investment expertise with ARP Group's financial and digital infrastructure experience.
The proposed bank is designed to serve regulated financial institutions, payment companies, and businesses operating across multiple markets and currencies. The use of artificial intelligence and application programming interfaces (APIs) is intended to simplify operations while maintaining human oversight and risk controls.
Shaikh Abdulla bin Khalifa Al Khalifa, CEO of Mumtalakat, emphasized the importance of the financial services sector to Bahrain's economy and the role of the sovereign wealth fund in enhancing its competitiveness. Yusuf Alireza, Chairman of ARP Group, highlighted the opportunity to integrate blockchain and AI into the bank's operations to improve client service efficiency.