The Central Bank of the UAE (CBUAE) has unveiled the Sandbox Conditions Regulation, a pivotal move to attract startups and global fintech firms, fostering an environment ripe for innovation within a structured regulatory framework.
This initiative aims to enhance the competitiveness of the financial sector and bolster the UAE's economic growth.
The new regulation sets clear guidelines for participants, including startups, fintech firms, and established businesses, wishing to test innovative financial solutions and services without the need for a traditional license. It specifies conditions for temporary exemptions from licensing requirements, allowing businesses to experiment with new models, products, and services under continuous regulatory oversight to ensure compliance and safeguard stakeholder interests.
Key criteria for participation include presenting technologically advanced financial products or services that promise consumer benefits or industry-wide enhancements. Applicants must also demonstrate a clear intention to expand their services in the UAE post-Sandbox phase.
Khaled Mohamed Balama, Governor of the CBUAE, emphasized the UAE's commitment to innovation and a knowledge-based economy.
“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 while ensuring consumer protection and stakeholder interests,”
Balama stated.
The Regulation has been officially published in the UAE's Official Gazette and is now in effect, marking a significant step in enhancing the UAE's fintech landscape.
News Source: Emirates News Agency
