The Dubai Financial Services Authority (DFSA) has launched a new explainer guide on its Innovation Testing Licence to support the growth of innovative financial services in or from the DIFC.
The Innovation Testing Licence – the DFSA’s regulatory sandbox – is a restricted financial services licence that allows eligible firms to test innovative financial products, services, and business models within a controlled environment with temporary modifications to existing regulatory requirements whilst being subject to close supervisory oversight. Launched in 2017, the Innovation Testing Licence remains a cornerstone of the DFSA’s approach to support the responsible development of financial technology solutions in the DIFC.
Designed as a practical tool for firms interested in applying for the licence, the DFSA’s Innovation Testing Licence explainer guide offers clear and accessible information on how to engage with the DFSA’s regulatory sandbox, test innovative solutions, and navigate the path to full authorisation. It outlines the purpose of the licence, eligibility criteria, application process, and obligations firms must meet during the testing phase.
Justin Baldacchino, Managing Director, Supervision, DFSA, said: “As the financial sector continues to evolve at pace, we recognise the importance of supporting innovation with clear and transparent regulatory guidance. The DFSA’s Innovation Testing Licence explainer guide is designed to demystify the process and empower innovators with the knowledge they need to engage with the DFSA and bring transformative financial services to market in the DIFC.”
The release of the explainer guide builds on the DFSA’s long-standing commitment to fostering innovation while ensuring regulatory integrity.
The DFSA’s Innovation Testing Licence explainer guide is now available on the DFSA website.
Applications for the Innovation Testing Licence are open year-round, with decisions typically issued within 10-12 weeks of receiving a complete submission, subject to the quality of the application and the responsiveness of the firm to any follow-up questions that the DFSA may have.
