Abu Dhabi Global Market (ADGM) and the Bahrain Economic Development Board (EDB) have entered into a FinTech cooperation agreement, marking a significant first in MENA and representing a leap forward in promoting the region as a connected and collaborative environment for FinTech to thrive in.
Through this new partnership, Bahrain EDB and ADGM will explore initiatives to promote economic growth in financial services through the adoption of new technology, and highlight MENA’s strengths in the FinTech sector.
The agreement will also facilitate a closer collaboration on the exchange of information on trends, services and products, leading to a closer relationship in the development of Islamic finance and FinTech initiatives across the region.
Professional and academic knowledge transfer, accelerator programmes and the mutual promotion of the development of relevant technologies such as digital payments and blockchain are fundamental to the growth of these sectors.
FinTech startups will have the ability to access information from each respective jurisdiction through one common point of contact.
Mr Richard Teng, CEO, Financial Services Regulatory Authority (FSRA) of ADGM, said: “From our close discussions with the EDB of Bahrain, and especially at the first Regional Regulators’ FinTech Roundtable recently in Abu Dhabi, it is clear we value the importance of collaboration and mutual support in any relevant manner. I look forward to continuing to work closely with our partner in building a more connected, collaborative network among our fellow regulators in the MENA region to cater to the rapid pace of FinTech growth here.”
Mr David Parker, Executive Director – Financial Services at Bahrain EDB, said: “We have seen exciting momentum in FinTech in Bahrain and across the region over the last year. The FinTech sector has witnessed approximately US$50 billion in investment globally, but the MENA region has received only about 1% of that. In Bahrain, we recognise that there is great potential for growth in this sector, and we are capitalising on this by creating the right ecosystem.
“This MoU marks another inspiring moment in our regional development. In Bahrain, an ongoing series of legal and regulatory reforms are supporting easy access to a wide range of new opportunities, including a FinTech sandbox and support for both conventional and Shariah-compliant crowdfunding. We look forward to this agreement leading to the rapid development of even more initiatives across the region.” M