Mumtalakat, ARP Group to launch AI-native bank in Bahrain

02/11/2026 10:28 AST

Bahrain Mumtalakat Holding Company (Mumtalakat), the sovereign wealth fund of the Kingdom of Bahrain, and ARP Group have partnered to establish an AI-native and blockchain enabled wholesale bank headquartered in Bahrain.

ARP Group is the holding company of ARP Global Capital and ARP Digital, the latter co-founded by Yusuf Alireza alongside Abdulla and Abdulaziz Kanoo. The venture has received in-principle approval from the Central Bank of Bahrain and will commence regulated activities only after obtaining final authorisation.

Mumtalakat said the bank is being designed to use artificial intelligence across its operations and offer programmable services that connect directly with clients' systems through APIs, supported by appropriate human oversight, governance and risk controls.

Products and services would be introduced in phases, informed by engagement with prospective clients.

The partnership combines Mumtalakat's long-term investment approach with ARP's experience in institutional finance and digital financial infrastructure.

The proposed bank is intended to serve regulated financial institutions, payment companies and businesses with cross-border operations. It aims to simplify banking for clients whose needs span multiple markets and currencies, using technology to reduce the complexity and cost of serving them.

On the strategic deal, CEO Shaikh Abdulla bin Khalifa Al Khalifa said: "Financial services have long been a cornerstone of Bahrain's economy, and as the sovereign wealth fund of the Kingdom, our role is to invest in opportunities that strengthen the sector's competitiveness and support its continued evolution."

"Through this partnership, we are bringing together an experienced institutional team with Bahrain's well-established regulatory and business environment, further reinforcing the Kingdom's position as a leading regional financial hub," he noted.

"This investment reflects our commitment to creating long-term value for Bahrain by supporting strategic sectors, creating high-quality opportunities for Bahraini talent, and generating sustainable returns that contribute to the Kingdom's economic growth and prosperity," he added.

Yusuf Alireza, Chairman of ARP Group, said: "Institutional clients with complex cross-border needs still face fragmented banking services. We see an opportunity to combine a regulated bank's balance sheet and institutional relationships with blockchain enabled technology and AI designed into its operating model from the outset, making these clients more efficient to serve."

"Bahrain's established financial sector and regulatory experience provide a strong foundation for this venture. Together with Mumtalakat, we aim to build a bank that supports clients across the Gulf and international markets," he added.

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