Fintech hub to open in Abu Dhabi
Financial regulators in Abu Dhabi plan to open up a regulatory focused fintech hub, the first of its kind in the Middle East.
Abu Dhabi Global Market set out plans on Monday for a ‘regulatory laboratory’ tailored towards start-up tech firms.
It has been set-up to cater to unique risks and requirements of fintech companies and foster innovation in the United Arab Emirates capital.
“We aim to develop an environment that harnesses finfech’s potential to increase efficiency, widen consumer choice and facilitate better risk management in the financial services industry within Abu Dhabi and the GCC region,” said H.E Ahmed Al Sayegh, chairman of ADGM.
Regulators are proposing a “blank-sheet” approach, meaning start-ups will not have a follow a full suite of rules from the outset.
Instead, a customised set of requirements will be applied based on business models, technology deployed and risk-profile of the fintech participant.
Under the framework, participants have a two-year period to develop, test and launch their products and services in a controlled environment.
Companies with viable business models will then be transferred to the full authorisation and supervisory regime.
Firms who are not ready after the two-year period will exit the programme.
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