The paper's crucial proposal is for "reviewing the DFSA rules that would normally apply and considering if they need to be waived (i.e., completely disapplied) or modified (i.e., applied in a different form that is appropriate for the actual circumstances) for fintech proposition."

How to qualify

The regulator is only interested in fintech proposals that meet the following criteria.

• The innovative business proposition must involve the use of financial technology.
• It must involve an activity regulated by the DFSA.
• The innovator(s) must have developed the idea to the stage where it is necessary to carry out ‘live’ testing with customers.
• If tested successfully, the firm must intend to implement its business proposition, model, service or product, in or from the Dubai International Financial Centre, which the DFSA regulates.

Application process

The DFSA expects the application process to go through the following stages.

• A welcome and exploratory stage, at which the innovator establishes contact with the Dubai International Financial Centre Authority (which oversees the strategy and administration of the whole) and the DFSA.
• Discussions with the DFSA regarding regulatory requirements for fintech business.  
• An application for an Innovative Testing Licence and the beginning of DIFCA registration.
• If the DFSA accepts the idea, it issues the licence.
• Testing phase for the new service in line with the parameters set by the DFSA.
• DFSA receives the results of the testing stage.
• If the results are good, the firm may "request approval to progress" to an unrestricted Financial Services Licence.
• If the results are bad, it ought to discuss its exit strategy.

The 'hive accelerator'

The DIFC has already set up Fintech Hive, to be found at fintechhive.difc.ae, which seems to be a crude attempt to gull pioneers with good business ideas into divulging them prematurely to the vested interests of the financial world. Its 'partners' are huge, well-established corporations: Citi, HSBC, Visa, Emirates NBD and Mashreq Bank, a regional private and retail bank based in Dubai.

Its website states: "Your proposed concepts will be taken through a 12-week accelerator programme. Here, you will have the opportunity to test and develop your innovation in collaboration with senior executive leaders from renowned financial institutions." It does not say when it will start to receive applications (it is not taking them yet) but it is, on a page misleadingly entitled "Apply for the Programme...apply>," already asking people with ideas to submit their names, job titles, email addresses, telephone numbers and lines of business.