الهيئة العامة للرقابة المالية

Dr. Mohamed Farid, FRA Chairman:

• The Regulatory sandbox boosts FRA’s efforts to support Fintech Startups
• The Authority aims to foster fintech innovation by creating a supportive regulatory environment for startups
• Fintech startups are invited to utilize the regulatory sandbox to innovate and grow

FRA’s Board of Directors chaired by Dr. Mohamed Farid issued Decree No. 163 of 2024 to establish a regulatory sandbox for technology applications; the Authority aims to enable non-bank financial institutions to utilize fintech. Also, it will allow entities seeking to be registered or already registered at Fintech outsourcing registry to conduct tests on innovative financial technology applications, including business models and related mechanisms.

The regulatory sandbox seeks to create a supportive environment for fintech innovation by enabling startups to test and refine their products and services, improving regulatory frameworks to keep pace with technological advancements, and ultimately promoting financial inclusion and economic growth.

Dr. Mohamed Farid, FRA Chairman stated that the regulatory sandbox will enhance the Authority’s efforts to support fintech startups. This, in turn, will increase innovation within the non-bank financial sector, expand the base of beneficiaries; develop the capabilities of non-banking financial companies and digital service providers.

The Authority is actively working to create a thriving fintech landscape by fostering collaboration between fintech companies, research institutions, universities, incubators, accelerators, investors, and global technology corporations.

Dr. Farid emphasized that the regulatory sandbox will foster fintech innovation, protect consumers and ensure regulatory compliance. It will also help startups gain the trust of investors and attract capital, thereby creating a dynamic environment for sustainable growth.

Additionally, he stated that the regulatory sandbox, under the Authority’s auspices, will work to support innovators in understanding and improving compliance and regulatory practices, as well as supporting the sustainable and inclusive growth of the non-bank financial sector, and providing a safe testing environment for startups to test their products and services under FRA’s supervision.

Dr. Farid encouraged fintech startups to leverage the regulatory sandbox to innovate and grow their businesses.

This is in line with FRA’s vision of accelerating digital transformation within the non-bank financial sector, thereby facilitating, expediting access to services and expanding customers’ base.

The Authority has taken significant steps to foster fintech innovation by issuing Law No. 5 of 2022 on regulating the use of fintech within non-bank financial sector and Decree No. 58 of 2022 on establishing and licensing fintech companies. Also, FRA issued Decree No. 139 of 2023 regarding the facilities and technological infrastructure, information systems, and protection and security mechanisms required for the use of Fintech in the non-banking financial sector. Followed by Decree no. 140 of 2023 regarding digital identity, digital contracts, digital records and compliance requirements.  This is the first regulatory decree outlining eKYC (electronic Know Your Customer). Decree No. 141 of 2023 further defines the outsourcing registry for non-bank financial technology, specifying authorized companies for customer identification and electronic contract services. It is worth mentioning that four companies have been registered, and additional registrations are anticipated in the near future.