Both the CBUAE and ESCA have sandboxes that are for a year and after that, the company may be licensed on a fast track basis or has to wind up. As for licensing, it starts with a meeting with the BSU at the CB to be followed by submitting an RBP and then the appropriate manuals. It takes up to six months to be licensed by the CBUAE. The process at ESCA should take between 2-3 months. In detail, an applicant firm must complete a formal process to obtain authorization from the relevant regulator. As described above, the process for authorization will vary depending on the regulator.

For example, the process for becoming authorized by the DFSA involves the following:

• Submission of a Letter of Intent – The Letter of Intent generally covers the following:
  1. Intention of the applicant and the activities intended to be conducted
  2. Reasons for setting up in the DIFC
  3. Founding directors and corporate structure
  4. Resources and functions ̶details of who will be based in the DIFC entity
  5. Permanent office space requirements
• Submission of a Regulatory Business Plan (RBP) – The RBP should set out the strategy and rationale for establishing an operation in the DIFC, as well as demonstrate how the business will be managed and controlled. The DFSA needs to understand the business model of the applicant firm so they can ensure that it is authorized for the correct financial services, investment types and client types, as well as to enable them to assess the adequacy of the applicant firm’s resources. The applicant firm will need to do the following:
  1. Identify all the financial services and any other activities it intends to carry out
  2. Identify all the likely business and regulatory risk factors
  3. Explain in depth how it will monitor and control these risks
  4. Consider any intended activities
• Submission of additional DFSA Application Forms and supporting documentation

The timing for processing each application for authorization can take anywhere between four and six months from the date of receiving the applicant firm’s full and complete application.