The UAE’s latest regulatory sandbox by TDRA enables startups and SMEs to test ICT innovations in a safe environment, ensuring compliance with evolving legislative frameworks.
The Telecommunications and Digital Government Regulatory Authority (TDRA) has officially launched its ICT Regulatory Sandbox’s operational phase, an initiative to ensure a robust legislative framework for newly introduced products and services within the information and communications technology (ICT) sector.
This initiative is expected to safeguard market stability while promoting innovation.
The ICT Regulatory Sandbox provides a controlled environment where companies can test emerging technologies and services for a specified period. During this time, these products and services are treated as if they have received full approval, allowing the TDRA to assess their potential impact on the market from legislative, environmental, social, procedural, technological, and other perspectives.
The products or services are granted a licence for production or distribution in the local market after completing the testing phase.
Majid Sultan Al Mesmar, Director-General of TDRA, highlighted the importance of this initiative in adapting to the rapid emergence of new technologies. He stated, “The current era is marked by the swift development of new technologies, leading to innovative products, services, and work methods. This necessitates the continuous evolution of legal frameworks, making the ICT Regulatory Sandbox a practical and innovative solution. The initiative allows us to assess the advantages and disadvantages of these products and solutions before they are introduced to the market.”
The ICT Regulatory Sandbox is not just about ensuring legislative readiness; it also plays a pivotal role in enhancing the UAE’s investment appeal, fostering entrepreneurship, and strengthening market dynamics.
This initiative aligns with the broader goals of the ‘We the UAE Vision 2031,’ which aims to establish a Forward Ecosystem. TDRA is now inviting businesses with new ICT-related products or services to apply for participation in this regulatory environment. Experts and specialists across various relevant fields oversee the process.
Mohammed Al Ramsi, Deputy Director-General of the Telecommunications Sector at TDRA, outlined the process for utilising the regulatory sandbox. The first step involves applying through TDRA’s official website, where applicants provide detailed information about the new product they wish to get approved and released to the market.
The application undergoes an initial assessment based on basic criteria, followed by a more comprehensive evaluation by the regulatory sandbox team, considering legislative, technical, and market impact aspects.
Following the initial assessment, products are subjected to further testing within a simulated market environment, where they are closely scrutinised from multiple perspectives. In the final stage, experts and specialists analyse the results to determine whether the product is fit for market entry.
Should any issues be identified during this process, the company responsible for the product must submit a report outlining the necessary corrective actions. The product can be reintroduced only after addressing these concerns in the regulatory sandbox. Open communication channels between TDRA and the applicant ensure that gaps are addressed, facilitating the product’s eventual approval.
The scope of products and services eligible for testing in the regulatory sandbox includes virtual, augmented, and mixed-reality products, cloud computing, smart applications, IoT applications, digital twins, and blockchain products. Small and medium-sized enterprises (SMEs), startup entrepreneurs, and companies operating within the ICT sector stand to benefit significantly from this service.
Launching the ICT Regulatory Sandbox marks a significant step forward in the UAE’s ongoing efforts to balance innovation with regulatory oversight, ensuring the market remains dynamic and secure as new technologies emerge.
