The Regulatory Sandbox and its role in the development of the Islamic Finance Industry

Abstract

From 2016, many financial authorities have launched a regulatory “SandBox” as a facilitator of the Fintech which appear as a result of the marriage between finance and technology. Islamic finance, with their embedded risks, would be more developed with a safe place in which businesses can test Islamic innovative products, services, and business models without immediately incurring all the normal regulatory consequences engaging the financial field. The paper trying to explore the conceptual framework of the regulatory Sandbox (Chapter I), and its role in the development of the Islamic finance industry (Chapter II). It recommends establishing a regulatory sandbox as a new mechanism for achieving the market's integrity, promoting inclusion, and encouraging innovation in the Islamic finance sector.