![UAE: Central Bank Reveals New Sandbox Conditions Regulations](https://i0.wp.com/www.lexis.ae/wp-content/uploads/2021/04/V1-News-coverage-1-UAE-1.jpg?resize=1110%2C530&ssl=1)
UAE: Central Bank Reveals New Sandbox Conditions Regulations
Middle East Economy, 25 June 2024: The Central Bank of the UAE (CBUAE) has issued the new ‘Sandbox Conditions Regulation’ aimed at attracting startups and global fintech businesses to the UAE financial sector.
The regulation outlines specific criteria and conditions that participants must meet in order to test innovative financial business models, products, and services within a regulatory sandbox environment.
A key objective of this regulation is to facilitate the testing of innovative financial solutions to support the competitiveness of the UAE financial sector.
It also aims to create an attractive environment that promotes creativity and innovation within a well-defined regulatory framework.
Here’s an improved version of that sentence:
Additionally, the regulation aims to improve the competitiveness of the UAE’s financial sector, thereby promoting economic growth within the nation.
The regulation provides details on the conditions and criteria that participants like startups, fintechs and established businesses must fulfill.
It allows them to be exempted from the requirement of obtaining a full license, enabling them to test their innovations for a specified duration.
However, they must comply with the stated regulatory obligations during this period.
Importantly, applicants must present a technologically innovative financial product, service, solution or business model that can benefit consumers and the wider industry.
They must also demonstrate a clear intention to deploy the proposed service broadly across the UAE after successfully exiting the regulatory sandbox.
A key aspect of the regulation is that it enables the CBUAE to proactively assess and respond to fintech innovations as part of its supervisory role.
It also guides participants on structuring their businesses in a compliant manner within the sandbox environment.
The CBUAE Governor stated that the Sandbox Conditions Regulation highlights the UAE’s commitment to enabling innovation and building a knowledge-based economy.
The aim is to encourage innovators to contribute positively while ensuring consumer protection and serving the interests of all stakeholders.
The Sandbox Conditions Regulation has been published in the Official Gazette and has come into force with immediate effect.
For more news and content, try Lexis Middle East. Click on lexis.ae/demo to begin your free trial of Lexis® Middle East platform.
You can also explore the legal landscape by subscribing to our Weekly Newsletter.
Want to learn more about Lexis® Middle East? Visit https://www.lexis.ae/lexis-middle-east-law/.