CBUAE issues regulatory sandbox for fintechs

Fintech companies now have their own sandbox: The CBUAE introduced the Sandbox Conditions Regulation, which allows fintech players to trial new businesses, offerings, or services prior to their official launch, according to a statement (pdf). The sandbox offers fintechs and startups a lenient regulatory setting to experiment with their business models or products, with the goal of attracting more startups to set up operations in the UAE. The introduction of the sandbox looks to boost competitiveness and contribute to the economic growth of the UAE, the central bank said. The guidelines came into effect following their publication in the Official Gazette.

The conditions: The regulatory sandbox outlines the criteria that fintechs and startups need to fulfill in order to test their products without needing a license. This trial period is subject to specific conditions, which include the requirement for participating businesses to introduce a new financial product or service that will either cater to the industry or provide benefits to consumers. The regulations state that applicants must make their product or service available to a broader customer base in the UAE once they exit the sandbox.

What was said: “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,” CBUAE Governor Khaled Mohamed Balama said.