Bahrain and Maldives Sign Agreements to Boost Financial Sector Cooperation

TDT | Manama

The Daily Tribune - www.newsofbahrain.com

The Maldives International Financial Services Authority announced that the Central Bank of Bahrain, the Bahrain Development Bank, and the Bahrain Association of Banks have agreed to enter into memorandums of understanding to cooperate in establishing the Maldives International Financial Services Authority, the International Financial Centre, and the Maldives Development Bank.

The Central Bank of Bahrain hosted a delegation from the Maldives International Financial Services Authority in a significant meeting aimed at strengthening financial cooperation between Bahrain and the Maldives.

The meeting on the Bahraini side was chaired by the Chairman of MIFSA, Abdullah Jihad, and the Governor of the Central Bank of Bahrain, Khaled Humaidan.

During the meeting, the Central Bank of Bahrain shared its approach to regulating the financial sector, including banking, financial technology (Fintech), the capital market, asset management, and insurance. The financial sector is the second largest non-oil sector in Bahrain, contributing 17.5% to the country's GDP.

The visit also included meetings with the Bahrain Development Bank and the Bahrain Association of Banks, where the parties, including the Central Bank, agreed to sign memorandums of understanding to cooperate in establishing the International Financial Services Authority for the Maldives, the International Financial Centre, and the Development Bank of the Maldives. This initiative aims to enhance joint cooperation and exchange experiences between Bahrain and the Maldives, contributing to the development of the financial sector and promoting economic growth in both countries.

In January 2024, the President of the Maldives, Mohamed Muizzu, announced the establishment of the International Financial Services Authority for the Maldives to develop a legal framework for providing internal financing services and implementing external financing services as stipulated in current laws. Minister of Economic Development and Trade Mohamed Saeed stated on social media that this initiative will be key to creating a modern regulatory framework to attract the development bank and other financial services needed to achieve the government’s development plans.