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THE ARAB MONETARY FUND LAUNCHES THE FIRST EDITION OF THE "OBSERVATORY OF EXPERIMENTAL CONTROL ENVIRONMENTS FOR MODERN FINANCIAL TECHNOLOGIES IN THE ARAB COUNTRIES" REPORT DinarDailyUpdates?bg=330099&fg=FFFFFF&anim=1

THE ARAB MONETARY FUND LAUNCHES THE FIRST EDITION OF THE "OBSERVATORY OF EXPERIMENTAL CONTROL ENVIRONMENTS FOR MODERN FINANCIAL TECHNOLOGIES IN THE ARAB COUNTRIES" REPORT

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THE ARAB MONETARY FUND LAUNCHES THE FIRST EDITION OF THE "OBSERVATORY OF EXPERIMENTAL CONTROL ENVIRONMENTS FOR MODERN FINANCIAL TECHNOLOGIES IN THE ARAB COUNTRIES" REPORT Empty THE ARAB MONETARY FUND LAUNCHES THE FIRST EDITION OF THE "OBSERVATORY OF EXPERIMENTAL CONTROL ENVIRONMENTS FOR MODERN FINANCIAL TECHNOLOGIES IN THE ARAB COUNTRIES" REPORT

Post by claud39 Thu Feb 18, 2021 12:27 pm

THE ARAB MONETARY FUND LAUNCHES THE FIRST EDITION OF THE "OBSERVATORY OF EXPERIMENTAL CONTROL ENVIRONMENTS FOR MODERN FINANCIAL TECHNOLOGIES IN THE ARAB COUNTRIES" REPORT
 2021-02-17


THE ARAB MONETARY FUND LAUNCHES THE FIRST EDITION OF THE "OBSERVATORY OF EXPERIMENTAL CONTROL ENVIRONMENTS FOR MODERN FINANCIAL TECHNOLOGIES IN THE ARAB COUNTRIES" REPORT Logo-ar






The experimental regulatory environments are attracting an increasing number of modern financial technology companies in the Arab countries, and the supervisory authorities are helping to adopt many new regulatory frameworks.
 

Within the framework of the Arab Monetary Fund’s endeavor to prepare reports and studies that are in line with the priorities of its member states and support policymakers, the Fund launched the first edition of an annual research journal entitled “Observatory of Experimental Control Environments for Modern Financial Technologies in the Arab Countries”, with the aim of monitoring the most successful models in the field of ensuring an enabling environment For the growth of the activities of this sector, especially those that can be expanded and applied in the Arab countries, with the aim of contributing to the exchange of experiences in a way that supports the decision-making process, contributes to the continuous development of these technologies and meets the urgent needs of Arab countries in terms of developing the financial sector.

The report pointed to the growing role of modern financial technologies in recent times in providing financial services and increasing levels of financial inclusion in a number of Arab countries in light of the promising solutions that they offer that enable many excluded and not adequately served groups, chief among them youth, women and micro and small enterprises. And medium-sized and promising residents of regions, will have access to affordable financial services.  

In this context, the testing control environments of modern financial technology companies represent one of the most important pillars that are relied upon to provide an incubator environment for companies operating in this field and support the growth of this activity, as these environments enable emerging companies in the field of modern financial technologies to work within the framework of an experimental control environment and provide They serve a limited number of consumers, which helps the companies' business models gradually mature. On the other hand, regulatory environments enable supervisory authorities to monitor and follow up the business models of these companies and then formulate appropriate frameworks to regulate their work before they are licensed and allow them to provide their services to a wide range of consumers, in a manner that guarantees financial stability and the protection of consumers of financial services.

The total number of companies operating in the field of modern financial technologies in twelve Arab countries that completed the questionnaire for the first edition of the Observatory of Experimental Control Environments reached about 60 companies. The number of these companies reached its highest level in Tunisia, with a total of 25 companies during the year 2020, followed by Lebanon and Sudan with about 12 and 10 companies, respectively, while the number of modern financial technology companies in other Arab countries decreased to less than ten companies. The number of companies operating in the field of financial technology has fluctuated during the period (2015-2020) in a number of Arab countries for which data are available, indicating the need for these companies to have a framework and environment supportive of their growth and enable them to face the challenges facing their work, especially during the first years of their establishment.

The report indicated the availability of testing control environments in seven Arab countries that completed the questionnaire. The scope of joining the experimental regulatory environments in a number of Arab countries is expanding to include, in addition to emerging financial technology companies, financial institutions licensed to test innovative solutions based on financial technologies, whether in the field of modern financial technologies or the financial sector in general. In terms of the incentives granted within the framework of test control environments, companies operating in the scope of these environments are granted many incentives such as providing advice and information on regulations and licensing requirements, as well as access to the financing necessary to implement these innovations.

The supervisory authorities in the Arab countries adopt a set of criteria for accepting the joining of financial technology companies to the test control environments, the most important of which are the presence of added value and the desired benefit from the adoption of this financial product, its applicability in the local market, and its readiness for testing within the framework of the control environment, so that priority is given to products and services With the highest levels of innovation. The supervisory authorities in the Arab countries adopt a set of measures with the aim of managing risks within the framework of well-tested control environments, among them setting maximum limits on the number of volunteer clients, and on the volume and number of transactions, in addition to requiring companies to meet the requirements to protect the confidentiality of customer data and specific frameworks for disclosure and transparency. In addition to the commitment to apply anti-money laundering and terrorist financing measures.

In the context of assessing the effectiveness of testing regulatory environments in the Arab countries, a number of indicators are referred to, including the total number of companies joining these environments and those that have successfully graduated from them, as well as the new regulatory frameworks that have been adopted in light of the stages of testing and evaluating the business models of companies joining These environments. In this regard, the results of the survey conducted by the Arab Monetary Fund indicate that the number of companies joining the testing environment in the Arab countries that adopt these environments and for which data are available is constantly increasing, reaching 44 companies in 2020. In terms of companies qualified from the environments It is clear that five companies graduated from Bahrain and six companies in Saudi Arabia.

Likewise, the experimental regulatory environments have helped central banks in the Arab countries to adopt a number of new regulatory frameworks in light of the results of their activities. For example, the Central Bank of Bahrain has been able to formulate a number of regulatory frameworks based on these environments, including the open banking system, in addition to issuing regulations governing digital financial consultations. The Central Bank of Saudi Arabia has also adopted a set of rules governing the activities of payment service providers, and those related to providing a product for consumer microfinance, updating the rules for opening bank accounts, and supervisory instructions for digital certification services and issuing credit cards to individuals and small and medium enterprises, as well as the rules for practicing financing activity. Collective in debt, which is expected to be released soon.






claud39
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