Bahrain and Israel have concluded a new cooperation agreement in the field of financial technology (Fintech) to develop joint initiatives and support the industry in both countries, The Times of Israel reported.
The two countries signed the agreement, last Tuesday, in Tel Aviv, in the presence of senior officials of the fintech industry in Bahrain and leaders from the Israeli fintech ecosystem. The Bahraini ambassador to Israel, Khaled Al-Jalahma, and the former head of the Mossad, Yoen Cohen, who currently heads SoftBank’s operations, were also present, according to the newspaper.
According to the new cooperation agreement, Israel Advanced Technology Industries (IATI), a comprehensive organization of high-tech, life sciences and Bahrain Fintech companies headquartered in Manama, will work together to facilitate networking and networking between startups and venture capital firms seeking to invest and expand in both countries.
Bahrain and Israel established diplomatic relations in September 2020 as part of the Ibrahim Treaty, which was made by the United States and paved the way for 4 Arab countries to normalize relations with Israel.
The two countries are working to strengthen bilateral relations. In February, Israel signed a scientific and technological cooperation agreement with Bahrain, which was followed by an agreement to cooperate in health and medical innovations and medical research.
Bahrain FinTech Bay defines itself as the “largest FinTech hub” in the Middle East, serving as an incubator, accelerator, innovation lab and co-working space for startups and companies looking to integrate technologies such as artificial intelligence, cloud computing and big data into the financial services industry.
The Gulf state is an important financial center and was once the most prominent in the region before it was overtaken by the UAE. It is home to about 400 licensed financial institutions and about 120 fintech startups, according to the 2022 report from Bahrain FinTech Bay.
Israel owns more than 500 fintech companies, according to the Startup Nation Finder database. Investments in startups and fintech companies in Israel totaled $4.5 billion over the course of 2021, according to a March report by Israeli investment firm Viola Group.