The Central Bank of the United Arab Emirates (CBUAE) has released a new regulation for its regulatory sandbox.
The Sandbox Conditions Regulation aims to attract startups and global fintech businesses to test innovative products and services within the UAE’s financial sector.
“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,” Khaled Mohamed Balama, Governor of the CBUAE said.
The regulation outlines the specific conditions that participants must meet. This includes startups, fintech firms and established companies looking to deliver innovative solutions.
They will be exempt from obtaining a full licence for a defined trial period. This allows them to test new business models, products and services.
Participants must present a technologically innovative financial offering that could benefit consumers or the wider industry. They must also intend to launch the service broadly in the UAE after leaving the sandbox.
The conditions enable the central bank to assess innovations proactively. It also helps participants understand how to structure compliantly with regulations.
The regulation has taken effect since its publication in the official gazette.
Follow us on
