His Excellency, Dr. Mohammad Y. Al-Hashel, the Governor of the Central Bank of Kuwait (CBK), announced that CBK has issued Regulatory Sandbox Framework for FinTech. These guidelines have been designed to help banks and technology firms experiment with emerging technologies in the fintech space.

The sandbox consists of 4 phases, and aims to encourage innovation by providing flexibility to participants in meeting some regulatory or licensing requirements, and to improve the stability of the banking system by testing new technologies in a controlled environment.

Kuwait is not the only country in the region to take steps in this direction – Bahrain has already created a fintech regulatory unit, while Dubai and Abu Dhabi are trying to attract fintech firms by offering testing sandbox, incubators and start-up accelerator programmes.

by Devansh Patel
Lead Analyst, Research Team, devanshp@ibsintelligence.com