The Central Bank of the UAE (CBUAE) has officially joined the AFAQ Payments System. This significant move aims to foster financial integration in the Gulf Cooperation Council (GCC) region.
Operated by the Gulf Payments Company (GPC) and collectively owned by GCC Central Banks, AFAQ is a groundbreaking system connecting payment networks across GCC countries.
Revolutionizing cross-border transactions
AFAQ is not just a system; it’s a catalyst for transforming cross-border transactions. The system offers the unique service of executing financial transactions in local currencies. Moreover, it provides customers in GCC countries with real-time transactions at lower fees. This leap in financial technology aligns with the strategic objectives of CBUAE. Thus, it marks a significant step in shaping the future of the UAE’s digitization journey.
The decision to join AFAQ resonates with CBUAE’s strategic vision. Supporting innovation and payment systems initiatives aligns with CBUAE’s aim to provide secure and instant payment platforms. The move also emphasizes a commitment to enhancing integration within the regional payment ecosystem. It solidifies the UAE’s position as a frontrunner in financial technology and digital innovation.
Barclays Bank joins
Notably, Barclays Bank has become the first financial institution operating in the UAE to join the AFAQ system. This move not only strengthens the ties between the Central Bank and private financial entities but also positions the UAE as a pioneer in embracing advanced payment systems for seamless financial transactions.
Gulf-wide participation
AFAQ is gaining momentum across the Gulf region. Apart from the CBUAE and Barclays Bank, the Central Bank of Bahrain, the Saudi Central Bank, and the Central Bank of Kuwait have already joined AFAQ. Several commercial banks from Bahrain, Saudi Arabia, and Kuwait are also part of this transformative initiative. The planned participation of remaining GCC Central Banks and commercial institutions, following an agreed work schedule, indicates a collective commitment to regional financial connectivity.
Safe, secure, and stable ecosystem
AFAQ is a regional payments system that executes financial transactions in GCC local currencies on a real-time basis. It features low fees within a safe, secure, and stable ecosystem. The system is linked to the National Central Banks through a highly secure private network.
Additionally, it provides elevated levels of protection and data security in the payments system. That is through the provision and management of digital certificates and the provision of the Public Key Infrastructure (PKI) service. This service allows for the secure issuing and managing of digital certificates to ensure the confidentiality and integrity of the data transmitted through AFAQ payments.
Moreover, the AFAQ payments system offers a common regional payments system that connects the Real Time Gross Settlement (RTGS) systems of each GCC member state. Hence, it facilitates the instant processing of financial transfers between them. It also has additional advantages of same-day settlement finality and irrevocability.
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