MUSCAT: The initiative aims to test technological solutions, business models and innovative applications before making them available on a wider scale.

Abdullah bin Salim Al Rubaie, Director General of Institutional Development Unit, explained that the admission of the Rushd platform into the Fin-Tech Regulatory Sandbox to develop e-investment advisory services is part of advancing innovation in the capital market of the Sultanate. He noted that the initiative aligns with efforts to implement the National Fin-Tech Strategy and promote the use of digital solutions in advancing financial services and products.

Al Rubaie reaffirmed the FSA’s commitment to providing a regulatory environment that encourages innovation, enabling promising projects to test their technological solutions and develop their business models within a framework that considers protection, trust and sustainability requirements. He also invited innovators, entrepreneurs, project owners and start-ups to submit their Fin-Tech initiatives and innovations in the non-banking financial sector and benefit from the opportunities offered by the regulatory sandbox to develop solutions that respond to market needs and meet investors’ expectations.

The FSA will oversee the performance of the Rushd platform, which operates within the scope of Robo-Advisory activities, during its live testing phase, following the completion of the necessary approvals and registration requirements for the regulatory sandbox. This marks the actual operational trial supervised by the FSA’s Fin-Tech Regulatory Sandbox Team. The platform will continue operating within the sandbox until it fulfils the regulatory, technical and operational requirements and obtains the necessary approvals and final licence to offer its services to the public.

The platform offers a Robo-Advisor service, an advanced digital solution that uses algorithms and intelligent technologies based on precise criteria to guide investment decisions. The service considers clients’ investment objectives, asset values and risk tolerance to develop customised investment portfolios suited to their financial profiles. Beyond providing investment recommendations and advice, the service includes comprehensive portfolio management across a diverse range of local and international assets and investments, from asset allocation to continuous monitoring and rebalancing. All investment portfolios and solutions are managed in accordance with Islamic Sharia principles.

The trial phase aims to assess the platform’s functionality and technical and operational readiness, alongside its risk management mechanisms, investment suitability and user experience. It will also enable the monitoring of operational results, documentation of observations and challenges that may arise during testing, and implementation of the necessary improvements before proceeding to subsequent stages.

The trial phase, which represents the platform’s actual operation, is divided into several stages, each subject to specific controls, including limits on the number of clients and the volume of transactions permitted at each stage, alongside a set of requirements and key performance indicators. These indicators will enable the Regulatory Sandbox Team to evaluate the platform’s operations, business model and ability to meet regulatory and operational requirements.

This initiative forms part of the FSA’s role in supporting innovation in the financial sector and testing FinTech solutions through its regulatory sandbox. The sandbox provides a supervised framework that allows companies to test innovative products, services and business models within a defined scope and under the Authority’s supervision before considering their wider introduction.