With the aim of regulating the use of fintech technology, the UAE's Minister of Economy has announced a regulatory framework for fintech companies adopting experimental licenses to conduct their operations. Similar frameworks were introduced by Dubai International Financial Centre and Abu Dhabi Global Market over the last year.
Companies operating outside these zones will be able to conduct their activities with smoother regulations. According to H.E. Sultan bin Saeed Al Mansouri, UAE's Minister of Economy, this regulatory framework will be a breeding ground for innovation.
"The experimental environment is defined as a pilot financial technology laboratory organized into a regulatory framework that allows entities to test innovative products, services, programs and business models in a simplified experimental control environment, within a limited and time-bound scope and timeframe," he said.
Companies holding experimental licenses, whether emerging companies, existing companies or individual projects, can apply to benefit from the newly adopted framework which will allow them to be exempt from some regulatory requirements defined following an evaluation of their project by a government commission.
