WGS 2024: New Buna system to ease cross-border payments in Arab region

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Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, First Deputy Ruler of Dubai, Deputy Prime Minister, and Minister of Finance of the UAE officially launched the Buna Payment System for the Arab Regional Payments Clearing and Settlement Organization at the World Governments Summit (WGS) 2024.

Buna’s launch represents a significant step towards achieving the objectives outlined by the Arab Monetary Fund, which established the Arab Regional Payments Clearing and Settlement Organization.

This significant initiative marks a crucial step towards strengthening Arab economic and financial integration, facilitating trade, and strengthening investment ties.

Sheikh Maktoum emphasised the importance of Arab cooperation in overcoming challenges and capitalising on opportunities.

He also highlighted the UAE’s pivotal role, as a growing global economic hub, in promoting regional integration and establishing connections with key trading partners.

Benefits of the Buna system

The Buna platform offers a multi-currency clearing and settlement system designed to streamline cross-border transactions.

Participating institutions can send and receive payments securely, reliably, and cost-effectively in six currencies, including four Arab currencies (Emirati Dirham, Saudi Riyal, Jordanian Dinar, and Egyptian Pound) and two international currencies (US Dollar and Euro).

Since its inception, Buna has launched instant settlement services and gained recognition as a model for efficient cross-border payment systems.

The platform currently links 108 out of 120 Arab banks signed up, with a target of 160 by the end of 2024.

UAE financial institutions like First Abu Dhabi Bank, Abu Dhabi Commercial Bank, and Emirates NBD are actively participating in the system.

The launch event featured specialised sessions with prominent figures such as Fabio Panetta, Governor of the Bank of Italy, Mehdi Manaa, CEO of Buna, and Hana Al Rostamani, Group CEO of First Abu Dhabi Bank. These discussions explored the system’s operations, future prospects, and its potential to support financial inclusion and economic growth across the Arab region.

In other news, the UAE signed agreements to boost investments and avoid double taxation with Kuwait, Bahrain, Egypt, and the World Bank. The agreements seek to eliminate double taxation, additional taxes, indirect taxes, and tax evasion while addressing the challenges of cross-border trade and investment flows.

Read: UAE signs agreements with Arab countries to avoid double taxation