International finance centre, Abu Dhabi Global Market, has unveiled plans to launch a Regulatory Laboratory designed to foster innovation in the United Arab Emirates finance market.

New entrants and existing players in the United Arab Emirates (UAE) finance market will be able to enter the Abu Dhabi Global Market (ADGM) ‘RegLab’, which will function as a tailored regulatory regime for fintechs.

The RegLab is set to provide a controlled sandbox-style environment for fintech participants to test solutions without regulatory compliance constraints and according to ADGM, will promote risk management and better regulatory outcomes for the fintech industry, as well as boost efficiency and growth and improve customer choices.

Applicants from the UAE as well as overseas are able to participate in the RegLab, which opened for applications opened on November 2 and will close on January 31. ADGM chief executive officer, Chief Services Regulatory Authority (CSRA), said the launch of the initiative follows its March 2016 commitment to develop Abu Dhabi as a fintech hub Middle East and North Africa (MENA) region.

“We met with numerous fintech stakeholders, local and global industry players, and global fintech hubs to raise the profile of the fintech community in Abu Dhabi,” he said.

“We have developed a progressive regulatory environment to allow the establishment and growth of fintech players at ADGM and to anchor their innovations in Abu Dhabi and regionally.”