Bahrain recently ratified and issued Law No. 6 of 2023 in Bahrain, endorsing and ratifying the Treaty on the System of Linking Payment Systems for GCC countries to which Bahrain is a signatory.
The GCC Treaty aims to set up a unified payment system for implementing the cross-border transfer and settlement of payments between GCC countries. The agreement will support the establishment of regional infrastructure for cross-border payments and a real-time system for settlement within GCC countries. The unified system will provide an alternative for SWIFT or correspondent banking protocols that are currently being predominantly used for payments in GCC countries.
Bahrain is consolidating its position as a digital payments hub that is expected to unlock opportunities for FinTech ventures and global financial institutions across the GCC. According to the Economic Development Board of Bahrain, the regional market is valued at USD 1.67 trillion and Bahrain finance companies are at the heart of the GCC, as well as the wider MENA region. The unified system is expected to provide a low-priced alternative for FinTech companies, expanding market access and reach on the long-term.
HOW ASAR CAN SERVE YOU
ASAR can assist you with incorporation services and obtaining a regulatory license for undertaking regulated payment services or ancillary services (e.g. FinTech services).
A unified payment system for payments and settlement across GCC nations is of relevance to companies directly involved in regulated payment services, and for FinTech companies that engage in regulated ancillary services through partnerships with payment services providers.
To find out more about the new law or coordinate legal counsel relating to it, contact us on +973 17 533 182 or email: firstname.lastname@example.org.