UAE Regulators Unveil Guidelines to Safeguard Financial Institutions’ Adoption of Enabling Technologies
Abu Dhabi/Dubai - A Major Step Towards Fostering Innovation in the UAE’s Financial Sector
The Central Bank of the UAE (CBUAE), Securities and Commodities Authority (SCA), Dubai Financial Services Authority (DFSA) of the Dubai International Financial Centre (DIFC), and Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) have jointly issued guidelines to promote the safe and sound adoption of enabling technologies by financial institutions in the UAE.
What are Enabling Technologies?
Enabling technologies refer to innovative products and services enabled by Application Programming Interfaces, Big Data Analytics and Artificial Intelligence, Biometrics, Cloud Computing, and Distributed Ledger Technology. These technologies aim to enhance modern financial services and promote innovation in line with international standards.
Key Takeaways from the Guidelines
- The guidelines set out cross-sectoral principles and best practices for financial institutions when adopting enabling technologies.
- They direct licensed financial institutions to adopt technologies that enable modern financial services and promote innovation in line with international standards.
- The issuance of these guidelines follows a public consultation launched in June 2021, during which valuable feedback was received from market participants.
Quotes from Regulators
Saif Al Dhaheri, Assistant Governor - Strategy, Financial Infrastructure and Digital Transformation at the CBUAE
“These guidelines will direct licensed financial institutions to adopt technologies that enable modern financial services and promote innovation in line with international standards.”
Dr. Maryam Buti Al Suwaidi, Chief Executive Officer of the Securities and Commodities Authority (SCA)
“The release of these guidelines is crucial for enhancing the safe and proper adoption of enabling technologies by financial institutions operating in the UAE’s financial sector.”
F. Christopher Calabia, Chief Executive of the DFSA
“Finance has long drawn on the latest technology, now more so than ever. The guidelines aim to encourage firms to deploy new technology in line with good practice and clear guidelines.”
Emmanuel Givanakis, CEO of the FSRA at the ADGM
“Modern financial institutions need their technology to be robust and resilient. These Guidelines will help financial institutions by providing best practices on how to manage and mitigate risks arising from the use of innovative technologies.”
Accessing the Guidelines
The guidelines can be viewed and downloaded on the websites of the Central Bank of the UAE, Securities and Commodities Authority, Dubai Financial Services Authority, and Financial Services Regulatory Authority, ADGM.