CBUAE Joins the Gulf Payments System “AFAQ”
The Central Bank of the UAE (CBUAE) has announced its participation in “AFAQ,” a landmark payment system operated by the Gulf Payments Company (GPC) and owned collectively by the GCC Central Banks. This strategic move marks a significant step in fostering regional integration in financial transactions.
About “AFAQ”
“AFAQ” is a cutting-edge system designed to interlink payment systems across the GCC countries. The platform enables real-time execution of financial transactions in local currencies, offering customers in GCC nations enhanced convenience through lower transaction fees and faster processing times. By fostering seamless cross-border transactions, “AFAQ” promotes economic cooperation and integration within the Gulf region.
CBUAE’s Strategic Alignment
The decision to join “AFAQ” aligns with the CBUAE’s broader strategic objectives of advancing the UAE’s financial technology and digitization efforts. By participating in initiatives like “AFAQ,” the CBUAE aims to:
Support Innovation: Encourage the development of secure and efficient payment solutions that foster trust and reliability in financial systems.
Promote Financial Inclusion: Provide instant and cost-effective payment platforms accessible to a broader audience.
Enhance Regional Integration: Strengthen ties with other GCC countries by contributing to a unified and interconnected payment ecosystem.
First Financial Institution to Join
In addition to the CBUAE, Barclays Bank has become the first financial institution operating in the UAE to join “AFAQ.” This milestone demonstrates the system’s appeal and potential to revolutionize financial transactions in the region. Barclays Bank is now utilizing the system’s services, setting a precedent for other financial institutions to follow.
Regional Progress and Expansion
Currently, the Central Bank of Bahrain, the Saudi Central Bank, and the Central Bank of Kuwait are active participants in the “AFAQ” system. Moreover, several commercial banks from Bahrain, Saudi Arabia, and Kuwait have also joined. The remaining GCC Central Banks and commercial banks are expected to onboard “AFAQ” in the coming months as part of an agreed implementation schedule.
Impact on the GCC Financial Ecosystem
The introduction and expansion of “AFAQ” is a game-changer for the Gulf’s financial ecosystem. By providing a unified platform for cross-border transactions, the system enhances efficiency, reduces costs, and strengthens economic cooperation among member states. The CBUAE’s participation underscores the UAE’s commitment to innovation and leadership in the financial sector. See more: evg.ae
Conclusion
The CBUAE’s integration into the “AFAQ” payment system signifies a pivotal moment in the journey toward a fully interconnected Gulf financial landscape. As more institutions and central banks join this initiative, the region is set to benefit from a more seamless, secure, and innovative payment ecosystem, paving the way for enhanced economic collaboration and growth.