Bahrain Mumtalakat Holding Company, the kingdom’s sovereign wealth fund, has partnered with ARP Group to set up an AI-native wholesale bank headquartered in Bahrain, the two said on Sunday.
The venture has received in-principle approval from the Central Bank of Bahrain. It will begin regulated activities only after it obtains final authorization, according to a statement issued on the sidelines of the Gateway Gulf Investment Forum in Manama.
The partners did not disclose the size of the investment, the bank’s planned capital or the stakes each will hold.
The proposed bank will serve regulated financial institutions, payment companies and businesses with cross-border operations. It aims to simplify banking for clients whose needs span several markets and currencies.
The bank will use artificial intelligence across its operations and will be enabled by blockchain technology. It will offer programmable services that connect directly with clients’ systems through application programming interfaces, with human oversight and risk controls, the statement said. Products will be introduced in phases.
ARP Group is the holding company of ARP Global Capital and ARP Digital. ARP Digital was co-founded by Yusuf Alireza with Abdulla and Abdulaziz Kanoo.
Shaikh Abdulla bin Khalifa Al Khalifa, Chief Executive Officer of Mumtalakat, said financial services had long been a cornerstone of Bahrain’s economy and that the partnership would reinforce the kingdom’s position as a regional financial hub.
Yusuf Alireza, Chairman of ARP Group, said institutional clients with complex cross-border needs still face fragmented banking services. He said the venture would combine a regulated bank’s balance sheet with blockchain technology and AI built into its operating model.
