The UAE has launched the Buna Payment System for the Arab Regional Payments Clearing and Settlement Organisation.
Making the announcement at the World Governments Summit 2024, His Highness Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum said the move was part of plans to further enhance cooperation, economic and financial integration across Arab countries.
The Buna Payment System is a set of solutions that enables financial and banking institutions to securely send and receive interbank payments across the Arab region and beyond. It provides clearing and settlement services in six currencies, including four Arab currencies: the Emirati Dirham, the Saudi Riyal, the Jordanian Dinar, and the Egyptian Pound, as well as two international currencies – the US Dollar and the Euro.
The system was established in response to an initiative proposed by the UAE during the Council of Arab Finance Ministers meeting, aiming to support economic stability in Arab countries. So far, 108 Arab banks have successfully linked with the platform from 120 banks who signed the linking agreement. It is planned forthe system to link with 160 banks before the end of 2024.
During the launch, His Excellency Mohamed Hadi Al Hussaini, Minister of State for Financial Affairs, praised the tangible achievements made by the Buna Payments System since it began its operations,
“With the many opportunities for cross-border payment systems, the importance of the multi-currency system, Buna, encourages the use of Arab currencies in clearing and settling Arab transactions. Through Buna, Arab countries are making an effort to provide advanced and secure payment services for cross-border transactions, and to facilitate trade exchange and mutual investments,” he said.
