TDRA Announces Launch of Operational ICT Regulatory Sandbox to Foster Innovation

The Telecommunications and Digital Government Regulatory Authority (TDRA) has announced the launch of the operational phase of its ICT Regulatory Sandbox.

This initiative aims to ensure an appropriate legislative response to new products and services introduced by companies in the industry.

The significance of this initiative lies in its provision of a pilot environment for testing emerging tech services and products in the ICT sector over a set period.

This simulated “approved” environment helps identify the legislative, environmental, social, procedural, technological and other implications of these products and services.

Upon successful testing, products or services receive a licence for production or distribution in the local market.

Majid Sultan Al Mesmar, Director-General of the TDRA, emphasised the importance of this step, stating, “The current era is characterised by the rapid emergence of new technologies and the resulting products, services, and work methods.

This necessitates the continuous development of legal frameworks, making the ‘Regulatory Sandbox’ initiative an innovative and practical solution. It allows us to assess the advantages and disadvantages of products and solutions before they are introduced to the market.”

Al Mesmar added, “The ICT Regulatory Sandbox is crucial for enhancing the UAE's investment attractiveness and promoting entrepreneurship. It strengthens market dynamics and contributes to the establishment of a Forward Ecosystem as outlined in the ‘We the UAE Vision 2031’.

We encourage businesses with new ICT-related products or services to apply and benefit from this regulatory environment, managed by TDRA and overseen by top experts and specialists.”

Mohammed Al Ramsi, Deputy Director-General of the Telecommunications Sector at TDRA, explained that the process begins with submitting an application through TDRA’s official website.

This application should include details of the new product the applicant wishes to have approved and released to the market.

The application is initially reviewed based on basic criteria and then examined in detail by the regulatory sandbox team, considering legislative, technical dimensions, and potential market impacts.

Products are then subjected to further market environment testing and close scrutiny. In the final stage, experts analyse the results to prepare a final verdict on the new product.

Al Ramsi noted that if experts identify issues, the company must provide a report detailing the required remedial actions before re-entering the regulatory sandbox.

TDRA maintains open communication channels with the applicant to address gaps and meet requirements for re-entry.

The regulatory sandbox accommodates a range of products, including virtual, augmented, and mixed-reality products, cloud computing, smart applications, IoT applications, digital twins and blockchain products.

SMBs, startup entrepreneurs  and ICT sector companies are primary beneficiaries of this service.

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