The Central Bank of the UAE (CBUAE) has issued the Sandbox Conditions Regulation designed to foster further innovation in financial services sector.
The Regulation outlines specific criteria that must be met by potential participants of the Regulatory Sandbox including criteria that allows businesses to be exempt from needing a licence to carry out testing within a specified duration.
In particular, the Regulation is targeting start-ups, fintechs and established businesses that are looking to deliver innovative solutions within the financial services sector within a regulatory and supervisory framework.
In a statement, the CBUAE said the conditions will allow it effectively assess and respond to these innovations as part of its supervisory activities, and enable participants to understand how best to structure their respective business in a regulatory compliant manner. It added that participants must demonstrate an intention to deploy the proposed service in the UAE on a broader scale after exiting the Regulatory Sandbox.
H.E. Khaled Mohamed Balama, Governor of the CBUAE, said: “The issuance of the Sandbox Conditions Regulation is a testament to the UAE’s keenness towards enabling innovation and building a knowledge-based national economy. By providing a structured platform for experimentation, we are encouraging innovators to contribute positively to the wider economy and participate actively in Sandbox Conditions Regulation, whilst ensuring consumer protection and achieving the interests of all stakeholders.”
For more information on the Regulation, please visit: https://rulebook.centralbank.ae/en
