What's Happening?
Bahrain has initiated the implementation of a National Digital Public Infrastructure (DPI) project aimed at creating a digital ledger for financed trade transactions and invoice submissions. This initiative, led by Bahrain's national digital infrastructure
provider BENEFIT and Singapore-based MonetaGo, seeks to de-risk SME lending and strengthen trade finance. The collaboration involves Bahrain FinTech Bay and the Bahrain Association of Banks, marking Bahrain's first large-scale DPI deployment. The project aligns with Bahrain's Economic Vision 2030 and aims to bridge digital public infrastructure between the Middle East and Asia, leveraging Singapore's digital trust frameworks.
Why It's Important?
The DPI initiative addresses the SME financing gap, a significant challenge in the region, by creating an alternative data credit score. This development is expected to provide banks with greater confidence to offer trade finance to a broader range of businesses, potentially increasing liquidity in the trade finance market. By reducing fraud risk through a secure digital ledger, the initiative enhances financial integrity and positions Bahrain as a leader in digital innovation. The collaboration with Singapore also sets a precedent for cross-border digital integration, reinforcing Bahrain's role as a hub for digital transformation.
