Abu Dhabi regulators are embracing digital technologies to streamline business in the emirate.
Last month, for example, Abu Dhabi’s Department of Economic Development launched a digital platform linking free zones known as e-link to facilitate doing business in the emirate.
The platform, which provides a one-stop digital portal for sharing and viewing economic licenses, will digitally connect businesses across four free zones – KEZAD Group (composed of 12 economic zones), Abu Dhabi Airports Free Zone, the Media Free Zone – Abu Dhabi (twofour54) and the free zone of Masdar City.
With more than 40 spread across the United Arab Emirates (UAE), free zones are an integral part of the country’s economy and home to much of the Emirates’ commercial activities.
Ranging from skyscraper-adorned financial centers to sprawling industrial parks and ports, these free zones are meant to entice foreign companies to set up shop in the Middle Eastern country and enjoy benefits such as full exemption from import, export, corporate and personal taxes.
To make them even more attractive, the electronic link will streamline business processes by creating a unified database of economic licenses in the Emirate of Abu Dhabi.
Platform users will also be able to consult the data of the beneficial owner of economic establishments, thanks to the integration with the database of the Ministry of Economy and the National Economic Registry.
Leverage AI to digitize processes
As the Ministry of Economic Development moves to digitize the way companies access and view licenses, the emirate’s financial services regulator has harnessed artificial intelligence (AI) to help automate the application process of license.
Dubbed “RegBot,” the AI-based licensing solution launched by Abu Dhabi Global Market (ADGM) was designed in collaboration with Nexus FrontierTech and uses natural language processing (NLP) to guide applicants through the process. registration of a new venture capital (VC) fund. .
For example, if the applicant fails to provide adequate information on their risk management systems against a regulatory requirement, RegBot will prompt them to provide additional data.
It also automates the extraction of data from uploaded documents, ranks the company’s readiness for approval from the Financial Services Regulatory Authority (FSRA) of Abu Dhabi and creates an audit report. assessment that the regulator must review. Overall, this should boost business efficiency and reduce overall VC application runtime.
In a report on its use of RegTech published last November, the FSRA explained how it leverages a range of AI solutions to help companies navigate the ADGM regulatory environment.
For example, the authority used the ClauseMatch AI platform to present information in a structured network graph by automatically labeling and linking concepts within the FSRA’s extensive documentation library.
Related: OCC encourages banks to explore AI solutions for RegTech
According to the FSRA, “a FinTech looking to provide a new service or product is able to instantly see which sections of the regulation or rule are applicable across multiple jurisdictions and how they relate.”
To reduce the reporting burden on FSRA-licensed firms such as asset managers, the authority will also use application program interfaces (APIs) to monitor client funds held by firms in real time with custodian banks. These can then be reconciled with the company’s internal records, allowing any irregularities to be reported to both the company and the regulator.
As the UAE strives to boost its knowledge economy by supporting and investing in digital sectors, digital platforms can create a more open and connected business ecosystem, while AI can be used to automate processes. routine business processes and increase business efficiency.
This seems to be the goal of the FSRA and the Department of Economic Development with this new initiative which launches a digital approach to regulation and compliance to then set an example for other regulators to follow.
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