The Central Bank of the UAE (CBUAE) has issued the Sandbox Conditions Regulation to attract start-ups and global fintech businesses. The regulation aims to create an environment that supports innovation within a regulatory and supervisory framework, enhancing the financial sector’s competitiveness and supporting UAE’s economic growth.
The regulation specifies conditions for participants, including start-ups, fintech firms and established businesses, to deliver innovative solutions in the financial services sector. It outlines criteria for exemption from obtaining a license, allowing them to test business models, products, and services within a specified period while complying with regulatory obligations.
These conditions enable the CBUAE to assess and respond to innovations as part of its supervisory activities. Participants must present a technologically innovative financial product, service, solution, or business model benefiting consumers or the industry and demonstrate an intention to deploy the service broadly in the UAE after exiting the Regulatory Sandbox.
“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,” said Khaled Mohamed Balama, Governor of the CBUAE
The Regulation has been published in the Official Gazette and has come into effect.
