30 May 2016, Abu Dhabi, UAE: The Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) and Flat6Labs U.A.E. FZ-LLC (Flat6Labs), on 25 May 2016, signed a Memorandum of Understanding on technology development and innovation in financial services to develop the financial technology (FinTech) eco-system in Abu Dhabi.
This MOU follows closely after the recent announcement of ADGM’s proposed Regulatory Laboratory (RegLab), a tailored framework that allows firms deploying innovative technology in the financial services sector (“FinTech participants”) to conduct their activities in a controlled and cost-effective environment. The proposed RegLab is the first such initiative in the Middle East and North Africa (MENA) region.
The new partnership provides a framework for FSRA and Flat6Labs to harness each other’s expertise and knowledge to build and introduce initiatives that strategically support the development and growth of the FinTech ecosystem in ADGM, Abu Dhabi and beyond.
The MOU underpins ADGM’s commitment to work and build strategic partnerships with key industry stakeholders to collaboratively cultivate local entrepreneurship and promote technology development and innovation in financial services.
Richard Teng, CEO, Financial Services Regulatory Authority of ADGM said, “We are glad to welcome Flat6Labs as one of our strategic partners in establishing the FinTech eco-system in the UAE. As an Abu-Dhabi based establishment, Flat6Labs is well recognised as a successful, committed and experienced technology accelerator in the region. More importantly, Flat6Labs shares our desire in fostering a vibrant entrepreneurial environment to support the growth of FinTech in the region. We look forward to launching new initiatives with Flat6Labs in the near future.”
Victor Kiriakos, MD, Flat6Labs Abu-Dhabi said, “We are glad to work closely with ADGM in order to create and grow the Fintech ecosystem in Abu Dhabi and the UAE. Part of our mission is to accelerate entrepreneurship in the MENA region and to successfully execute this mission, we require a collaborative mindset and we are very glad to have found in ADGM a partner that values collaboration”.
The FRSA published a consultation paper on 10 May 2016 and is seeking industry views on its proposed FinTech regulatory framework including the “Regulatory Laboratory” initiative. In this proposed initiative, FinTech participants enjoy a two-year period to develop, test and launch their products and services in a controlled environment. The proposal supports FSRA’s objective in developing a stable and sustainable financial services sector in Abu Dhabi, while fostering innovation within scoped parameters buffered by risk-proportionate regulatory safeguards. The consultation period ends on 13 June 2016.