ARP Group and Bahrain Mumtalakat Holding Company (Mumtalakat) propose an AI-native, blockchain-enabled wholesale lender with approval in principle but no final authorization to conduct regulated business, the Bahrain Economic Development Board (EDB) said.
Mumtalakat is Bahrain’s sovereign wealth fund. The customer pool would include payment providers, regulated financial firms and companies doing business across borders. EDB described the venture as an effort to reduce the cost and operational friction of banking in multiple countries and currencies. The release gave no estimate of customer savings or details on who would bear costs.
The Central Bank of Bahrain (CBB) gave approval in principle, the Nov. 1 announcement said, while final authorization remains a condition for regulated business. Bahrain’s Central Bank and Financial Institutions Law requires anyone seeking to offer regulated financial services to obtain a CBB license.
Clients would be able to link their own systems with programmable banking features using application programming interfaces (APIs), while AI would be applied inside the bank’s operations. EDB said the design would retain human oversight and risk safeguards. The partners plan to add services gradually after consulting prospective users.
ARP Group Chairman Yusuf Alireza characterized the challenge for institutions working across borders as “fragmented banking services.” Mumtalakat CEO Shaikh Abdulla bin Khalifa Al Khalifa called financial services a “cornerstone of Bahrain’s economy” and said the project was intended to support the sector and Bahraini talent.
The announcement did not name the proposed bank or disclose its investment amount, ownership split or launch timetable. It also did not identify any clients that had committed to use its services.
Mumtalakat previously announced an investment in Singapore Gulf Bank alongside Whampoa Group in February 2024. In that announcement, the fund said the CBB had recently licensed the digital bank, a separate venture from the one now proposed.
Final CBB authorization is the next stated step. EDB gave no date for a decision or the start of services.
