Sandbox Conditions Regulation is issued to attract Start-ups & Global Fintech
The Central Bank of the UAE is dedicated to attracting start-ups and global fintech businesses by fostering innovation and creating a dynamic financial sector. A key initiative in this strategy is the Sandbox Conditions Regulation.
This regulation aims to enhance competitiveness and drive economic growth by strengthening the financial sector. To take advantage of this regulation, start-ups, fintech companies, and established businesses must meet specific criteria. These include an exemption from the requirement to obtain a license, allowing them to test various business models, products, and innovative services for a set period.
However, businesses must comply with mandatory regulations to ensure the best outcomes for all stakeholders. Eligible candidates must offer a service, solution, technology, or business model that benefits consumers or the wider industry.
Additionally, applicants must demonstrate a clear intent to launch the proposed service within the UAE before exiting the Regulatory Sandbox. This model not only strengthens the CBUAE's role as a proactive and effective supervisor but also helps participants structure their operational models in compliance with regulations.
The CBUAE Governor, Khaled Mohamed Balama, mentioned, “The issuance of the Sandbox Conditions Regulation is a testament to the UAE’s commitment to enabling innovation and building a knowledge-based national economy…”. He believes that while securing consumer protection and promoting the benefits for all stakeholders, such an organised testing platform will stimulate innovators to contribute positively to economic growth and actively engage in the Sandbox Conditions Regulation.
Bolster Group can assist start-ups and fintech companies in navigating the Sandbox Conditions Regulation, ensuring compliance with mandatory regulations while maximizing their innovation potential and market entry strategies