In the dynamic UAE landscape, innovation stands tall as a cornerstone of economic advancement. The top ranking in Global Innovation Index in a regional level continues to solidify its position as a global leader in innovation, drawing businesses keen on placing innovation at the forefront of their endeavours to the UAE. Dubai is one of the destinations where UAE’s innovative businesses are stimulated and significantly impacted the financial services sector in the UAE. Adding more to the trend, The Dubai International Financial Centre (DIFC) is serving as the eminent international financial hub across the Middle East, Africa, and South Asia (MEASA) is issuing Innovation Testing Licence (ITL) Programme to catalyse innovation within the DIFC while mitigating associated risks. The license is designed for entities seeking to introduce novel financial products and services, such as payment solutions, wealth management tools, tokenized payment services, and biometric-enabled financial offerings, the ITL Programme functions as a regulatory sandbox. Within this controlled environment, ITL holders can methodically test and refine their innovations under the supervision of the DFSA.
Key Objectives of the ITL DIFC Programme:
– Uphold regulatory objectives.
– Provides a secure space for testing innovative financial products and services.
– Foster collaboration with innovative market participants.
– Enhance supervisory insights.
– Facilitate the transition of successful ITL holders to an unrestricted licensing status.
However, it’s crucial to understand what the ITL DIFC Programme does not entail:
– Waiving regulatory requirements.
– Granting preferential treatment over incumbent entities.
– Predicting or influencing user/market acceptance.
– Test RegTech solutions.
– Guaranteeing automatic progression to an unrestricted licensing status.
What are the criteria for qualifying for the ITL DIFC Programme?
a) Offer an innovative product or service, either by introducing a new type of offering or by applying innovative technology to an existing one.
b) Engage in a financial service activity that falls within the DFSA’s regulatory scope and can be conducted from or within the DIFC.
¢) Be prepared to initiate live testing of their business with customers.
d) Have plans to expand their business within or from the DIFC after completing successful testing.
Are you still trying to figure out the costs for the ITL Licensing?
The DFSA’s ITL fee is USD 5,000, covering the application process and the testing period. Other costs include registration, incorporation, and license fees, along with workspace provisions. For technology companies, specific expenses include:
a. DIFC Incorporation and License fee: US$ 1,500
b. Co-working space in the DIFC Innovation Hub – starting from US$ 500 per desk.
By incorporating these costs, technology companies can accurately gauge the financial implications associated with obtaining an ITL within the DIFC.
Why MS for DIFC Innovation Testing License?
ITL in DIFC can have lasting advantages to your business, MS streamlines the process of acquiring an ITL, saving you time and effort. By leveraging our local regulatory knowledge and established relationships within the DIFC, MS accelerates the licensing process. We provide a tailored approach that combines regulatory proficiency with your business’s specific innovation goals, facilitating your success within this globally recognized financial hub.
