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The Qatar Central Bank announced its accession to the AFAQ payments system operated by the Gulf Payments Company, an entity owned by the GCC central banks, according to the Qatar News Agency. This step finalizes the participation of every GCC central bank in the platform that links regional real-time gross settlement systems. Three Qatari commercial banks, Doha Bank, Qatar International Islamic Bank and Dukhan Bank, simultaneously joined the system, elevating the GCC-wide participant total to 74 banks. The development strengthens financial and monetary integration across the bloc.
The AFAQ system, short for Arabian Gulf System for Financial Automated Quick Payment Transfers, connects the real-time gross settlement systems of GCC nations to enable same-day settlement of cross-border transfers in local currencies. The Gulf Payments Company has reported that the platform operates with low fees while maintaining high standards of security and stability. This infrastructure supports instant processing that avoids traditional correspondent banking routes often reliant on external currencies. Since its launch in December 2020, AFAQ has seen progressive adoption by both central and commercial banks across the bloc, data from the company shows.
Earlier participants included the central banks of Bahrain, Saudi Arabia and Kuwait, which joined shortly after the system’s debut, a Central Bank of the UAE statement from December 2023 noted. The UAE authority itself acceded that year alongside Barclays Bank as the first UAE commercial participant. Oman completed its central bank integration prior to Qatar, bringing the full complement of six GCC central banks into the fold by September 2026, according to updates from the Gulf Payments Company.
Qatar Central Bank officials indicated that the move will bolster connectivity of payment systems and promote greater efficiency in regional financial transfers. The platform’s expansion aligns with GCC efforts to facilitate trade and investment by reducing costs and processing times for cross-border transactions, the Qatar News Agency reported. Industry assessments from the Gulf Payments Company suggest such systems help mitigate risks associated with international payments while enhancing liquidity management for participating institutions.
Gulf Payments Company figures show the AFAQ platform has processed 276,000 transactions with a total value exceeding 26 billion units since inception. The addition of Qatari participants is projected to increase transaction volumes in the months ahead as more institutions connect. Further onboarding of commercial banks from Qatar and other states is anticipated as the system expands its service offerings across the region.
The development represents a significant milestone in the GCC’s financial integration agenda, which has been a priority since the establishment of the Gulf Payments Company in May 2020 following a decision by the GCC Supreme Council, according to the company’s records. By enabling direct local currency transfers among the six member states, AFAQ reduces dependence on third-party currencies for intra-regional movements. This latest accession is expected to benefit individuals, businesses and corporations conducting frequent cross-border activities within the Gulf, the Qatar News Agency stated.
