5-1

The Regulatory Sandbox is intended for any persons wishing to conduct testing of their business, products or services which constitute Licensed Financial Activities. The Regulatory Sandbox will not be available for Applicants wishing to conduct the following:

(a)

taking deposits of all types;

(b)

carrying out insurance activities in the State; and

(c)

acting as principal in financial products that affect the financial position of the person, including but not limited to foreign exchange, financial derivatives, bonds and sukuk, equities, commodities, and any other financial products, as determined by the Central Bank.

5-2

Licensed Financial Institutions will not be permitted to participate in the Regulatory Sandbox, and any innovative testing falling outside of such entities’ authorised business activities must be discussed with the Central Bank prior to market deployment.

5-3

The Central Bank will work with the Applicant to evaluate the innovative products, services, solutions or business models to identify legal and regulatory obligations, which will be applied throughout the duration when the Participant is in the Regulatory Sandbox. This will be done on a case-by-case basis. The Central Bank reserves the right to impose restrictions on any Regulatory Sandbox Participant’s activities, or impose additional regulatory compliance obligations, at any time during the Participant’s operation within the Regulatory Sandbox.

5-4

In addition to the Conditions, the Central Bank will exercise the full range of its supervisory powers under the Central Bank Law on all Regulatory Sandbox Participants.

5-5

The Central Bank’s decision to apply additional regulatory compliance obligations will take into account the:

(a)

Participant’s compliance with the requirements set in the ’Safeguards’ section of these Conditions;

(b)

Participant’s demonstrated ability to identify and assess potential risks and define applicable mitigations; and

(c)

Participant meeting the defined eligibility criteria on an ongoing basis.