It’s been all about startups and FinTech in the MENA region! So it’s no surprise when His Excellency, Dr. Mohammad Y. Al-Hashel, the Governor of the Central Bank of Kuwait announces that the bank has issued a Regulatory Sandbox Framework for fintech companies.
The regulatory sandbox framework aims to encourage firms to experiment with emerging sectors in FinTech. The sandbox’s guidelines will be providing flexibility with regards to meeting some regulatory or licensing requirements. In addition, the sandbox will allow banking systems to test their new solutions in a controlled environment, which could, in turn, improve stability.
According to Reuters, the sandbox will include four phases with representatives from local banks to join the Central Bank’s task force to help in assessing the products and services proposed.
It’s worth noting that Bahrain also released their regulatory sandbox last year, making it the first country in the MENA to launch such a regulation. Dubai and Abu Dabi also have their own sandboxes and are working on cultivating a financial startup scene through their incubators and accelerators.