The Central Bank of Bahrain will create a regulatory sandbox for
startups and financial technology, or fintech, firms to test their
products.
The virtual testing space will be open to both local and foreign
firms, with each user allowed to test for nine months with a
possible three month extension, the bank said.
Solutions to be tested must show innovation, customer benefits,
technical testing, and an intention to be deployed in Bahrain after
the sandbox period ends, it said.
The bank recently issued a regulatory sandbox framework
directive laying out the eligibility criteria, filing requirements
and timeline.
The bank hopes to attract fintech businesses from around the
world to "expand and thrive in the Gulf, and strengthen
Bahrain's position as a fintech and financials services hub in
the Gulf Cooperation Council", it said.
