CBUAE Introduces Sandbox Conditions Regulation
This regulation aims to enhance the financial sector's competitiveness and support the UAE's economic growth.
The Central Bank of the UAE (CBUAE) has launched the Sandbox Conditions Regulation, designed to attract start-ups and global fintech businesses. This regulation aims to enhance the financial sector's competitiveness and support the UAE's economic growth.[1]
The regulation sets out specific conditions for participants, including startups, fintech companies, and established businesses aiming to deliver innovative solutions and services within a regulatory framework. It includes criteria for exemptions from licensing requirements, allowing participants to test new business models, products, and services within a set timeframe while ensuring compliance with regulatory obligations.
These conditions enable the CBUAE to assess and respond to innovations as part of its supervisory activities, helping participants understand how to structure their businesses in a regulatory-compliant manner.
Applicants must present a technologically innovative financial product, service, solution, or business model that benefits consumers and the wider industry. Participants must also demonstrate plans to scale their service across the UAE after exiting the Regulatory Sandbox.
Check the full text of the regulation here.
In February, The Abu Dhabi Department of Economic Development (ADDED) forged a partnership with Hub71, aiming to propel innovation within the emirate by bolstering the regulatory landscape for products and services.
This collaboration marks the inception of the Abu Dhabi Regulatory Sandbox Programme, an innovative platform geared towards uniting companies across key sectors such as health tech, mobility, and agritech with regulatory bodies and policymakers.
The regulatory sandbox framework provides a unique opportunity for both local and international companies within priority sectors to test their innovations in a real-world setting. This testing phase is instrumental in aiding these enterprises to fine-tune their offerings, potentially paving the way for future launches within the emirate.
