In a move akin to fintech friendly inititives in the US and UK, Dubai has just announced an interim license designed to foster fintech innovation.
The Dubai Financial Services Authority (DFSA) today released the details of its Innovation Testing Licence (ITL) which allows fintech firms to go through a special testing stage prior to their approval as fully operational firms. The aim of the initiative is to reduce the barriers for innovative startups to enter the financial market by making it easier for a fintech firm to validate and refine concepts before the expensive licensing process. According to the proposal, each qualifying firm that applies to establish itself in Dubai will initially work under a special restricted financial services licence. Fintech operators will be able to use the ITL licence to test their products for a period of 6 to 12 months, which could be extended upon DFSA’s discretion.