Bahrain's Mumtalakat and ARP Group plan AI-native bank

Bahrain’s sovereign wealth fund, Mumtalakat, and ARP Group have agreed to set up an AI-native, blockchain-enabled wholesale bank headquartered in Bahrain, aimed at institutional clients with cross-border banking needs. The venture has preliminary approval from the Central Bank of Bahrain and will only begin regulated activities once it secures final authorization.

ARP Group is the holding company behind ARP Global Capital and ARP Digital, the latter co-founded by Yusuf Alireza together with Abdulla and Abdulaziz Kanoo. The partnership pairs Mumtalakat’s long-term investment approach with ARP’s experience in institutional finance and digital financial infrastructure.

The proposed bank would serve regulated financial institutions, payment companies and businesses operating across borders, aiming to simplify banking for clients whose needs span multiple markets and currencies by using technology to cut complexity and cost. It is being designed to run AI across its operations and to offer programmable services that connect directly to clients’ systems through APIs, backed by human oversight, governance and risk controls; products would roll out in phases depending on client interest.

“Institutional clients with complex cross-border needs still face fragmented banking services,” said Yusuf Alireza, ARP Group’s chairman. “We see an opportunity to combine the balance sheet and institutional relationships of a regulated bank with blockchain technology and artificial intelligence built into its operating model from the start, making it more efficient to serve these clients.” Mumtalakat CEO Sheikh Abdulla bin Khalifa Al Khalifa framed the deal as part of the fund’s long-standing role investing in Bahrain’s financial sector, aiming to strengthen the Kingdom’s position as a regional financial hub while creating opportunities for Bahraini talent.

Why it matters

The venture is a bet that institutional and cross-border banking — not just retail fintech — can be rebuilt around AI and blockchain from the ground up, and a sign that Gulf sovereign funds are looking to deepen, not just diversify, their home financial sectors.