Bahrain Mumtalakat Holding Company, the kingdom's sovereign wealth fund, and ARP Group have teamed up to establish an AI-native, blockchain-enabled wholesale bank headquartered in Bahrain, the two partners said.
The venture has received in-principle approval from the Central Bank of Bahrain and will begin regulated activities only after it obtains final authorisation, according to the announcement, which was made on the sidelines of Gateway Gulf 2026. ARP Group is the holding company of ARP Global Capital and ARP Digital, which Yusuf Alireza co-founded with Abdulla and Abdulaziz Kanoo.
A BANK FOR INSTITUTIONAL CLIENTS
The proposed bank is meant to 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, using technology to cut the complexity and cost of serving them.
The partners said the bank is being designed to use artificial intelligence across its operations and to offer programmable services that connect directly with clients' systems through APIs, with human oversight, governance and risk controls. Products and services would be introduced in phases, shaped by talks with prospective clients.
"Institutional clients with complex cross-border needs still face fragmented banking services," said Alireza, chairman of ARP Group. He said ARP sees an opportunity to combine a regulated bank's balance sheet and institutional relationships with blockchain-enabled technology and AI built into the operating model from the outset, and to serve clients across the Gulf and international markets.
THE FUND BEHIND THE VENTURE
The partnership pairs Mumtalakat's long-term investment approach with ARP's experience in institutional finance and digital financial infrastructure. "Financial services have long been a cornerstone of Bahrain's economy," said Shaikh Abdulla bin Khalifa Al Khalifa, chief executive of Mumtalakat, adding that the fund's role is to invest in opportunities that strengthen the sector's competitiveness.
Shaikh Abdulla was appointed chief executive of Mumtalakat in May 2023. He previously served as chief executive of Osool Asset Management, the investment arm of the Social Insurance Organisation, and has chaired the board of SICO Investment Bank and served as vice chairman of The Bank of Bahrain and Kuwait.
Shaikh Abdulla said the investment reflects a commitment to creating long-term value for Bahrain, including high-quality opportunities for Bahraini talent and sustainable returns, and that the partnership reinforces the kingdom's position as a leading regional financial hub.
WHERE IT WOULD SIT IN BAHRAIN'S SYSTEM
Bahrain is a regional wholesale and Islamic banking centre with a small domestic economy. The Central Bank of Bahrain had licensed 83 banks in January 2025, of which 54 were wholesale banks, 15 of them Islamic.
THE TGB VIEW
Wholesale banks held US$123.6bn of assets in Bahrain in July 2026, almost half of a US$249.0bn banking system, according to the TGB market profile, and foreign assets account for 58% of the total. That offshore weight fits a bank pitched at cross-border institutional clients, though it would enter a segment that already had 54 licensed wholesale banks in January 2025. The point to watch is the Central Bank of Bahrain's final authorisation, without which the venture cannot start regulated activities.
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